GST Council Meeting: 2 days meeting in Chandigarh from today, discussion on bringing petrol and diesel under GST is possible, you will get freedom from inflation?
GST
Highlights
- Two days meeting of GST Council begins in Chandigarh from today
- Possible changes in the rates of many products and services including GST slabs
- The cost of hospitalization and hotel stay may increase
The two-day meeting of the GST Council, the apex body of Goods and Services Tax ie GST, is starting in Chandigarh from today. Finance Minister Nirmala Sitharaman will chair this meeting held on June 28-29, in which a decision can be taken on reducing and increasing the rates of many products and services, including changes in the slab of GST. People are hopeful that this time apart from petrol and diesel, a decision should be taken on bringing liquor under GST, but so far the situation is not clear on this.
Petrol diesel will be considered?
The GST Council can be considered to bring petroleum products under the purview of GST. Before the meeting of the GST Council, the chairman of the Economic Advisory Council to the PM, Vivek Debroy, has expressed the possibility of including petrol and diesel in the purview of GST. Vivek Debroyen has advocated that bringing petrol and diesel under the purview of GST will make it possible to curb rising inflation. During the debate on Finance Bill 2021, BJP MP Sushil Modi had said that this would collectively cause an annual loss of 2 lakh crores to the states. Whereas Petroleum Minister Hardeep Singh Puri says that if petrol and diesel are brought under the purview of GST, then the central government will be happy.
Inflation may hit here
The full possibility of changes in the tax rates of many products and services is being expressed in the GST meeting. In a recent meeting of the Group of Ministers, besides online gaming, horse racing and casinos, considering them as harmful services, have recommended 28 percent GST on them. Apart from this, staying in a budget hotel can also be expensive. The GST Council may increase the GST rates on the cost of hospital stay, water pumps and household utensils. A committee headed by Karnataka CM Basavaraj Bommai has recommended increasing the rate of GST on several products and services.
recommendation to increase their rates
GST rate from 18% to 28%:
- casino
- online games
- race course
GST Rate 12% to 18%:
- Printing, Writing and Drawing Ink
- Knives, spoons, plates and other cutlery
- Dairy Machinery, LED Lamps, Drawing Instrument
GST rate increased from 5% to 12%
- solar water heater
- leather
Tax exemption will end
- Air travel to North East and Bagdogra in non-economy class
- Tax exemption on goods transport service by rail or road
Recommendations of the Ministerial Group
A second ministerial group led by Meghalaya Chief Minister Conrad Sangma has recommended that 28% GST should be applied on the entry fee and the value of chips or coins purchased in casinos. But it should not be applied to individual bets placed by players. As per the proposal, in case of online gaming, the amount paid by the player for participation should attract GST at the rate of 28%. The panel has recommended that 28% GST should be levied on casinos, online games and race courses.
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