The GST council, meeting next week in Chandigarh, is likely to discuss changes in tax rates on 14 items recommended by the Fitment Committee, according to a CNBC-TV18 report. It was previously reported that the Council had sought positions from states to increase tariffs on 143 items, including handbags, perfumes/deodorants, chocolates, chewing gum, leather and walnut clothing and clothing accessories, among others.
The Fitment Committee, made up of tax officials from both the center and the states, rejected the rate change for 113 goods, deferred for two goods and recommended rate changes for 22 services, the report said.
The GST Council is likely to waive the requirement to file restitution applications by approving the two-year period between March 1, 2020 and February 28, 2022, given the disruption caused by the COVID-19 pandemic, according to a report by CNBC. TV18 cites sources. It may also allow tax authorities to appeal against unjustified refunds by disregarding the two-year COVID-19 period.
The Council is also likely to extend the deadline for filing GSTR 4 for FY22 with no late fees from composite dealers to July 28 from the earlier deadline of June 30, 2022. It may also extend the deadline for filing FORM GST CMP-08 for composite taxpayers for the first quarter of FY23 from July 18 to July 30, 2022.
The mounting panel, made up of officers from the Center and the states, has recommended an increase in the GST rate on polished and polished diamonds from 0.25 percent to 1.5 percent as the reduced rate on polished and polished diamonds increases the tax inversion. caused, according to a livemint report. The final decision was left to the group of ministers (GvM) on tariff rationalization to examine.
The mounting panel has also proposed lowering GST rates to 5 percent from the current 12 percent for ostomy appliances, according to the report.
The 47th GST Council meeting will be held in Chandigarh from June 28-29. The Council-appointed Ministerial Group (GOM), headed by the Chief Minister of Karnataka, Basavaraj Bommai, has already held its meeting to discuss various issues, including changes to tax plates and rates. The GoM will submit its report before the GST Council meeting.
The United States government reportedly discussed issues such as tax brackets and rates on Friday, but was unable to reach a consensus. However, the report states that the Group of Ministers will present a status report to the GST council on the consensus reached at the previous meeting of the GoM on 20 November 2021. The panel, which was established last September, last meeting in Nov 2021.
In a key ruling last month, the Supreme Court said the GST council is only a recommendation body and its recommendations are not binding on the Center or the states. The court ruled that the GST Council’s recommendations will have compelling value. The Court also ruled that both parliament and state legislators can legislate equally on matters related to GST.
Currently there are four GST plates: 5 percent, 12 percent, 18 percent and 28 percent. The 18 percent record has 480 items, about 70 percent of which come from the GST collections. In addition, there is an exempt list of items such as unbranded and unpackaged food that are not subject to the levy.
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