GST Council Meeting: After following several suggestions given by the state finance ministers, it has now been decided to impose GST on packaged branded items like curd, cheese, honey, meat and fish.
GST Council Meeting: The common man suffering from inflation has got another setback. In the GST Council meeting, it has been decided to levy Goods and Services Tax (GST) on canned and labeled branded items like curd, cheese, honey, meat and fish. Apart from this, GST will also have to be paid on the fees taken by the banks in lieu of issuance of cheques.
Recommendation for withdrawal of exemption accepted
Officials said that most of the recommendations of the Group of Finance Ministers of the states have been accepted. The recommendations for withdrawal of exemptions had come in order to rationalize rates on issues related to the Goods and Services Tax (GST). Let us tell you that the Finance Minister of the states is included in the council headed by Union Finance Minister Nirmala Sitharaman.
These things will attract 5 percent GST
The Council accepted the recommendations of the Group of Ministers (GoM) on the review of the exemption from GST on Tuesday, the first day of the two-day meeting. This exemption is currently available to packaged and labeled food items. With this, products like canned meat (except frozen), fish, curd, cheese, honey, dry makhana, soyabean, peas, wheat and other cereals, wheat flour, muri, jaggery, all commodities and organic manure are now five percent. GST will be applicable.
Hotel stay will be expensive
Similarly, 18 per cent GST will be levied on the charges levied by banks on issuance of cheques. Maps and charts including atlas will attract 12 percent GST. At the same time, GST exemption will continue on unbranded products sold in the open. Apart from this, it has been said to levy tax at the rate of 12 percent on hotel rooms renting less than Rs 1,000 per day. There is no tax on it as of now.
GST may be reduced on some things
Rationalization of rates is important to increase the weighted average GST. The weighted average GST has come down to 11.6 per cent from 14.4 per cent at the time of implementation of this tax regime. The GST Council also recommended reforms in the inverse duty structure (higher taxes on finished products than on raw materials and intermediates) on several products, including edible oil, coal, LED lamps, ‘printing/drawing ink’, finished leather and solar electric heaters. is of.
Today these things will be considered
The council may consider on Wednesday the demand to continue the compensation system even after June 2022 to compensate for the revenue loss to the states. Apart from this, important issues like levying 28 percent GST on casinos, online gaming and horse racing are likely to be discussed.
Opposition-ruled states like Chhattisgarh have been demanding an extension of the GST compensation system for five years or increasing the states’ share of revenue from the current 50 per cent to 70-80 per cent. The report of the state finance ministers on reforms in the GST system was also approved. It suggests real-time verification of bank accounts along with biometric verification of high-risk taxpayers.