The GST Council on Sunday said the location of its 47th meeting, which will be held during June 28-29, has been changed to Chandigarh, from Srinagar decided earlier. The Council-appointed group on ministers (GoM), headed by Karnataka Chief Minister Basavaraj Bommai, has already conducted its meeting to discuss various, including changes to tax slabs and rates. The GoM will submit its report before the GST Council meeting.
"The 47th meeting of the GST Council will be held on 28-29 June, 2022 (Tuesday and Wednesday) at Chandigarh instead of Srinagar," the GST Council said in a tweet on Sunday. Earlier, it was decided to hold the meeting in Srinagar.
Meanwhile, Minister Of State For Finance Pankaj Chaudhary on Sunday also took meeting of the CGST Department CGST Lucknow Zone and Meerut Zone. The officers of both zones attended the meeting.
The GoM, as per a PTI report, discussed issues like tax slabs and rates on Friday but unable to reach consensus. The report said the Group of Ministers will, however, present a status report to the GST Council on the consensus that was arrived at the previous meeting of the GoM on November 20, 2021. The panel, which was set up in September last year, last met in November 2021.
During the 47th meeting, the GST Council, headed by Finance Minister Nirmala Sitharaman, is likely to discuss pruning the list of exempted items, plan to shift rate slabs, and proposal to correct inverted duty structure in textiles. It might discuss a proposal to shift rate slabs from the current five percent to seven or eight percent; and from 18 percent to 20 percent. The Council may also discuss the proposal to correct inverted duty structure in textiles.
An inverted duty structure refers to a situation where the tax rate on inputs purchased is higher than that on finished goods.
Currently, there are four GST slabs - 5 percent, 12 percent, 18 percent, and 28 percent. The 18 percent slab has 480 items, from which about 70 percent of the GST collections come. Apart from this, there is an exempt list of items like unbranded and unpacked food items that do not attract the levy.
In a major ruling last month, the Supreme Court has said the GST Council is only a recommendatory body and its recommendations are not binding on the Centre or states. The court held that the recommendations of the GST Council will have a persuasive value. The Court also held that both Parliament and the state legislatures can equally legislate on the matters related to GST.
GST Collections in May hit an amount of Rs 1,40,885 crore, which was a 44 percent year-on-year jump. However, it was a drop of 16 percent as compared to the GST collections in April. The gross GST revenue collected in May 2022 was Rs 1,40,885 crore, of which CGST is Rs 25,036 crore, SGST is Rs 32,001 crore, IGST is Rs 73,345 crore (including Rs 37469 crore collected on import of goods) and cess is Rs 10,502 crore (including Rs 931 crore collected on import of goods).
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