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Government prepares to shed retrospective tax sword, debate held at GST Council meeting

Sagar Patel

By Sagar Patel

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GST Council Meeting

A new government has been formed in the country. Narendra Modi took over as Prime Minister for the third time. With this, now the work of the government has also started moving forward at its own pace. In this sequence a GST Council meeting was organized in which many important decisions were taken. It is said that the GST rates on many items may be reduced, while the Council may provide clarification on the current rates for the tobacco products, insurance, roads and telecommunications sectors. Apart from this, the Council can also take many important decisions to facilitate compliance and promote ease of doing business for GST traders.

Expectation of retrospective tax exemption

There is a possibility of getting rid of retrospective tax/GST. Let us tell you that many sectors such as online gaming are waiting for relief from retrospective GST. There are preparations to add a new provision to the GST Act in the council meeting. The Legal Committee has made a similar proposal for exemption from retroactive tax. Let us tell you that under retrospective tax, the government implements any current or new law from the previous date. If the government believes that a domestic or foreign company is evading taxes, it implements a new tax law retroactively. In such a situation, additional taxes are collected from that company.

What could be cheaper?

  1. GST on Apple Carton can be reduced from 18% to 12%.
  2. The GST on solar cookers can be reduced from 18% to 5%.
  3. GST on aircraft parts can be reduced from 18% to 5%.
  4. There is a proposal to eliminate the compensation tax on the sale of soft drinks in unitary dining rooms (CSD).
  5. Currently, the compensation tax applies at a rate of 12 percent to carbonated beverages.
  6. A proposal to remove fertilizers from GST can be sent to the GoM.
  7. Currently, the GST on fertilizers is 5%…The industry demands zero GST on fertilizers.
  8. Clarifications may emerge on GST on tobacco products, cigarettes, beedis and smokeless tobacco products.
  9. GST rates in telecom, road sector, insurance and ESOPs are also likely to be clarified.

Hope to provide relief to GST traders

New Form GSTR-1A can be implemented for changes in filing of GST return. Amendments can be made in GSTR-3B on the basis of the declaration in GSTR-01. Biometric-based pan-India authentication for new registration may be announced. We tell you that the TDS deduction for e-commerce companies may be reduced from 1% to 0.5%. A decision on all these issues can be taken at the GST Council meeting on June 22.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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