In a slew of decisions at its 49th meeting on Saturday, the Goods and Services Tax (GST) Council provided relief to businessmen by allowing a one-time amnesty for past lapses and rationalised late fee on annual returns, besides accepting recommendations of a group of ministers to plug leakage of revenues on commodities such as pan masala, gutkha and chewing tobacco.
It reduced tax on liquid jaggery (rab) to zero from 18% if sold loose, or 5% if labelled and sold in packages, Union finance minister Nirmala Sitharaman said. The council reduced tax on pencil sharpeners from 18% to 12%. It removed tax on tracking devices or data loggers affixed on durable containers, which was earlier taxed at 18%, she said.
The council extended exemptions on coal rejects if supplied to and by a coal washery, and to services provided by the National Testing Agency to conduct entrance examinations to educational institutions.
“It is also decided to tax services supplied by courts and tribunals under the reverse charge mechanism,” Sitharaman said. Reverse charge mechanism places the liability to pay tax on the recipient of supply of goods or services instead of the supplier.
Coucil repesened by all federal states finacne minsiters approved the release of over ₹33,500 crore worth of compensation cess to the states, and agreed to table a draft legislation in the current session of Parliament to establish an appellate tribunal.
