The Goods and Services Tax Council met today for its first meeting in nearly seven months and decided on a slew of matters.
The biggest decision was on reducing the compliance burden on taxpayers, Finance Minister Nirmala Sitharaman, who chaired the 43rd meeting of the Council, said.
To provide relief to small taxpayers, an amnesty scheme has been recommended for reducing late fee, she said.
Compensation cess payable to states this year is Rs 2.7 lakh crore of which Rs 1.58 lakh crore will be given to them via back-to-back loans. Same formula as last year to apply.
The Centre expects to collect over Rs 1.11 lakh crore through cess on luxury, demerit and sin goods which will be given to the states to compensate them for the shortfall in revenue arising out of GST implementation.
Under GST law, states were guaranteed to be compensated bi-monthly for any loss of revenue in the first five years of the GST implementation from July 1, 2017.
Key Highlights of the meeting :
Import of Covid-related relief items exempt from IGST till Aug. 31.
AmphotericinB, used for treating Mucormycosis, will also be exempt from IGST.
Group of ministers to review exemption requests on further Covid-related items like vaccines and ventilators. GoM to be constituted tomorrow.
Annual return filings will continue to be optional for small taxpayers for FY21.
Rate decisions on items ranging from MRO units of ships to shipping to annuity payments received as deferred payment for construction of road.
Separate meeting to be held to discuss states’ demands regarding extension of compensation period beyond FY22.