GST Rates Will Not Increase, No Late Fees For Filing GST; 28% GST For All Lotteries, Across India Approved
We’d informed you some time back that the Central GST collection has fallen short of the budged estimate by nearly 40%, during the April-November period of 2019-20, as per the data presented in Parliament on December 9.
Well, in an all-powerful GST Council on Wednesday which was its 38th meeting, voted for uniform rate of 28% on lotteries across the country. Even though the Council is under pressure of boosting revenues amidst a shortfall, the GST Council chose not to tamper with the rates.
Insights of the 38th GST Council Meeting
It was decided to extend the annual date of GSTR 9 filing to January 31, 2020 and waive late fee for all taxpayers who have not filed GSTR1 from July 2017 to November 2019.
- Non-BJP ruling states accused the union government of conducting a sovereign default, since they have been refused to be paid on time.
- Tamil Nadu’s Deputy Chief Minister O Panneerselvam advised the Centre to abide by its constitutional responsibility to provide GST compensation dues to state governments in full for five years.
- He illustrated that Tamil Nadu was one of the best performing states in GST collection.
- West Bengal’s Finance Minister Amit Mitra on the other hand, demanded a complete review of the GST process.
- M S Mani, Partner, Deloitte India, expressed his gratitude since the rates have been left unchanged as frequent alterations create business difficulties.
- As per Sitharaman, the GST Council rationalised tax rate on woven and non-woven bags to 18%, adding that exemption has been given on long-term lease for industrial plots to facilitate setting up of industrial parks.
- Every attempt was made to keep tradition alive but eventually the council was reminded that tradition was not part of rulebook.
- Levy of penalty relaxed for non-filing of GSTR-1 from July 2017: Revenue Secretary after GST Council meeting.
- GST Council exempts long term lease on industrial plots to facilitate setting up of industrial parks.
- GST Council fixes 28% tax rate on lottery effective March 1, 2020.
- This is the first time that the Council has taken a decision through the voting route, since the launch of the new overarching indirect tax.
- During the voting, 21 states voted in favour of a uniform rate.
- Sitharaman also attended a pre-budget meeting with different chief ministers and finance ministers yesterday.
- The GST Council is seeking ways to plug revenue leakage, improving the efficiency of the system using technology and examining specific steps to augment revenue.
- The GST Council had earlier asked the state governments about their views on reviewing rates and ways to increase tax proceeds.
- Investors are keenly watching the on-going GST council meet, a rate hike is looking unlikely due to a surge in inflation while the focus will be more on revenue realisation.
- The Sensex hit a record intra-day peak of 41,614.77 before settling 206.40 points up at its all-time closing high of 41,558.57. Similarly, Nifty went up by 56.65 points to its record closing high of 12,221.65.
- The finance ministry is said to have told state governments that this is not the right time for a GST rate hike.
- According to Chhattisgargh minister T S Singhdeo, the GST rate change proposals are unlikely to be discussed at the meeting.
- He said that before any tax rate changes, revenue realisation should be optimised at existing tax rates by addressing areas of revenue leakage.