GST Council will decide on O2 and concentrators tax tomorrow

GST Council will decide on O2 and concentrators tax tomorrow

NEW DELHI: the almighty GST advice, chaired by Union finance Minister Nirmala Sitharaman, will meet on June 12 to decide on a GST rate cut for various products related to the fight against Covid, amid indications that states are no longer interested in pushing for a review of the tax on vaccines.
The change of position of the states comes after the prime minister Narendra modidecision to rework the vaccine policy, with the Center now acquiring 75% of the production, which will be transferred to the states. After protesting the issue, states appear to have abandoned their opposition as it no longer affects your purchases. The other recommendations of the group of ministers (GoM) established by the GST Council, however, will be on the agenda.
The panel, which released its report earlier this week, recommended a tax cut for several products but refrained from waiving the GST entirely or minimizing it, something opposition-led states were demanding.
From oxygen concentrators to medical grade oxygen to test kits, the panel is said to have recommended a 5% tax as a temporary measure. Demand from some of the states includes cutting GST on PPE kits, masks, and hand sanitizers.
UP FM Suresh Kumar Khanna, who is also a member of the GoM, said on Wednesday that the state is in favor of cutting taxes on Covid essentials to facilitate patients, but will accept the GST Council’s decision on tax rates. .
The Council’s decision to establish a ministerial panel had faced criticism from the Opposition, who wanted an immediate cut, and had also called the Center “ruthless”, a charge that Sitharaman suggested was not justified, given that the panel is a permanent organism. that it had decided to use a revenue neutral rate formula at the time of the GST launch four years ago to protect revenue.
In recent Council meetings, opposition states have come together and tried to blame the Center. While Saturday’s meeting is expected to be largely limited to discussing the Mexican government report, some states are also expected to raise the issue of compensation. They demand that the compensation period be extended another five years, beyond the July 22 deadline. Some states are also demanding that borrowing limits be raised to 5% of GSDP (state gross domestic product), without any conditions that allow them to raise funds to deal with the impact of cyclones and other natural calamities.
The meeting is also likely to deliberate on Punjab FM Manpreet Badal’s demand to debate in the GST Council on the need to obtain Council approval for decisions made by the GST Implementation committee as it has no power to dictate. rules. There is a view among states that the authority of the Council is eroding and some states are likely to raise the issue vigorously during the meeting.


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