GST Council Meet Live: Interim Report On Rate Rationalisation Receives Council's Nod

• Issuing of e-way bill for movement of gold has been approved. However, the threshold value for this would be subject to states’ discretion.

• The establishment of a GST tax tribunal has also been approved

• Council has approved the GoM’s report on system reforms.

(Source: Officials with knowledge of the matter)

• The interim report on GST rate rationalization on disallowing exemptions for packed goods has been approved.

• Correction of inverted duty structure has also approved. Further details on items under approval are yet to be revealed.

(Source: Officials with knowledge of the matter)

BQ Prime has learnt that the council is likely to deliberate on the following key issues on June 28 and 29:

• Extension of GST compensation: States were assured compensation for the loss of revenue arising from the GST’s implementation. The additional revenue support—assumed at a yearly compounded growth rate of 14% for five years—will end on June 30. The states are likely to continue to push for its extension. GST compensation contributes more than 20% of the tax revenue for a few states.

• Online gaming: The council is likely to vote on a report submitted by a group of ministers for a uniform rate hike for casinos, racecourses and online gaming.

• E-way bills for gold: A GoM report on whether it would be feasible to mandate an e-way bill requirement for transporting gold will be picked up.

• Fitment committee suggestions on rate rationalisation: A group of ministers, chaired by Karnataka Chief Minister Basavaraj Bommai, has submitted its interim report on rate rationalisation, and might be due for discussion by the GST Council.

The two-day GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, is underway in Chandigarh. It is being attended by finance ministers of various states and senior state and central government officers.