No hike in GST rate slabs, tax on biofuel down to 5%, Here's What got expensive & cheaper at the 48th GST council meeting
The 48th meeting of the GST Council had 15 items on agenda, of which 8 were completed and the rest will be finished at the next meeting-
The 48th meeting of the GST council concluded on December 17th, with the Union Finance Minister Nirmala Sitharaman officiating the entire proceedings a 15-agenda meeting advanced with several prominent issues at the focus.
Among the major recommendation made at the meeting, three types of offenses were decriminalized. However, no major decision on the taxation of tobacco and gutka was taken, despite it being among the crucial points on the Council meeting's agenda.
The council announced that insurance companies ‘no claim’ bonus will not be attracting any sort of GST from now on, besides the declaration being made by the Union FM that no increment in tax is made on any of the items that fall under GST’s ambit.
In another key decision, the Council has doubled the threshold for launching prosecution from Rs 1 crore to Rs 2 crore. It has further decided to reduce the compounding amount from the present range of 50 to 150 percent of the tax amount to the range of 25 to 100 percent.
Brief look at the other major highlights of the GST 48th Council meeting:
• No tax increase on any item was announced at the meeting. Revenue Secy said GST on online gaming and casinos was not discussed as the report of GoM on the issue was submitted its report only a couple of days back.
• GST tax reduction was announced on husk and pulses, husk tax was down to zero from 5%, while on Ethyl alcohol or biofuel, which are supplied to refineries came down to 5% from 18%.
• The issue of mechanisms to curb tax evasion in pan masala and gutkha businesses could not be taken up.
• The GST council has doubled the threshold for initiating prosecution to Rs. 2 Crores. Besides, the council has further decided to reduce the compounding amount from 50% to 150% of the gross tax amount to the slab range of 25-100%.
• The Government’s press release highlighted that the offenses which are to be decriminalized are, "Obstruction or preventing any officer in the discharge of his duties, deliberate tempering of material evidence"; and "failure to supply the information.”
• There has been no tax increase on any item at the GST Council meeting.
• 2 GoM issues could not be taken up including setting up a GST tribunal.
The 48th meeting of the GST Council had 15 items on agenda, of which 8 were completed and the rest will be finished at the next meeting, said Finance Minister Nirmala Sitharaman at the press briefing.