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GST Council Meeting Update: The 46th meeting of the GST Council is going to be held under the chairmanship of Finance Minister Nirmala Sitharaman on Friday, 31 December 2021, the last day of the year. In this meeting, discussions can be held regarding rationalization of GST rates. This meeting will not be virtual but will be held face-to-face at Vigyan Bhawan in Delhi from 11 am. The report of the panel of finance ministers on rationalization of GST rates can be discussed in the meeting.
The issue of increasing the GST rate on textiles will be raised.
The issue of increasing the GST rate on textiles may remain a shadow in the meeting of the GST Council. In fact, from January 1, 2022, the GST on textiles is going to be increased from 5 percent to 12 percent. It is believed that in this meeting, the decision to increase the GST on textiles and footwear i.e. shoes from 5 percent to 12 percent can be discussed in the meeting of the GST Council. From the state governments to the textile and footwear industry, they are opposing the increase in the GST rate.
Delhi Chief Minister Manish Sisodia has said that he is going to raise this issue in the GST Council meeting on Friday. Because this will cause huge loss to the entire textile industry. He said that only 5 percent GST should be levied on textiles.
FM Smt. @sitharaman will chair the 46th meeting of the GST Council in New Delhi, tomorrow. The meeting will be attended by MoS for Finance Shri @mppchaudhary & Shri @DrBhagwatKarad, besides Finance Ministers of States & UTs and Senior officers from Union Government & States. pic.twitter.com/S1rDGN0TIf
— Ministry of Finance (@FinMinIndia) December 30, 2021
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There will be a demand to extend the period of GST compensation
The period for paying GST compensation is expiring in June 2022. On July 1, 2017, it was said that the states would be compensated for the loss due to the implementation of GST for five years. Chhattisgarh Chief Minister Bhupesh Baghel has said that the producing states are suffering due to GST. Therefore, they will demand the Finance Minister to extend the period to compensate the loss due to GST.
Possible discussion on GST rates
In the GST Council meeting, the panel of state finance ministers will submit its report on rationalization of rates, the panel has also reviewed the items under the inverted duty structure so that refunds can be reduced. At the same time, the Fitment Committee of Tax Officers of the Center and the States has made several recommendations to the Group of Ministers regarding changes in GST rates and changes in slabs.
At present, there are four slabs of GST rates, 5 per cent, 12 per cent, 18 per cent and 28 per cent. The required items are either in the lowest slab or there is no tax on them. Luxury and demerit items are in the highest slab, which also attracts cess. There is a demand to make one slab by combining 12 per cent and 18 per cent slabs of GST.
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