Union Finance Minister Nirmala Sitharaman chairs the 47th meeting of Goods and Services Tax (GST) Council, held in Chandigarh, Tuesday, June 28-29, 2022
The Goods and Services Tax (GST) Council is learnt to have accepted an interim report on the rationalisation of tax rates submitted by a group of ministers (GoM) led by Karnataka Chief Minister Basavaraj S. Bommai.
Finance and Corporate Affairs Minister Nirmala Sitharaman chaired the proceedings of the Council. Several important decisions are expected from the Council, the Finance Ministry said in a statement.
The GoM on rate rationalisation was also entrusted with studying the unification of different GST tax slabs, but a bigger reform involving new tax slabs and rate increases has been pushed off due to high inflation.
As the GST regime completes five years this week, the Centre's offer of certain revenue levels for States to join the new indirect tax system expires.
The GST Compensation Cess on some sin goods and automobiles has been extended until March 31, 2026, from the initial sunset date of June 30, 2022.
If the protective revenue provision is not continued, then the 50% formula for Central GST and State GST should be changed to SGST 80%-70% and CGST 20%-30%.
The Council is also expected to take a call on another ministerial group’s report on taxation of online gaming, casinos and horse racing. A GoM has recommended that these three sectors should be taxed at 28% instead of the current levy of 18%.