New Delhi, An important meeting of the Goods and Services Tax (GST) Council is starting from Tuesday. In this, the tax rates on some items can be changed. There will also be a discussion on increasing the provision of compensation. Keep in mind that the decision has already been taken to increase the compensation cess till March 2024. It is being told that in the meeting to be held in Chandigarh, issues like compensation system to the states and relief in the registration rules of small e-commerce suppliers will also be discussed.
The 47th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and representatives of all states and union territories, is scheduled to be held on June 28-29. The meeting of the GST Council is being held after six months. In the meeting, apart from rationalizing the tax rates, the demand for increasing the provision of compensation from the opposition-ruled states can also be discussed. The rates proposed by the Committee of Officers or the Fitment Committee will be considered on the tax rates.
In the meeting of the GST Council, the opposition ruled states will strongly advocate the continuation of the provision of compensation to compensate for the revenue deficit. On the other hand, the Center would like to stop any such move citing fiscal conditions. To meet the shortfall in the GST Compensation Fund, the Center took a loan of Rs 1.1 lakh crore in 2020-21 and Rs 1.59 lakh crore in 2021-22 and released it to the states. To compensate for this, the compensation cess has been extended till March 2024.