New Delhi: The 54th meeting of the GST Council, which is responsible for deciding on rates and other aspects related to the Goods and Services Tax, will be held in New Delhi on September 9, the government said on Tuesday.
The focus of the upcoming meeting, the first one after the presentation of the Union Budget 2024-25, is likely to be on rate rationalisation, reducing tax slabs and addressing duty inversion issues.
“Key expectations include a much-needed overhaul of GST rates, clear guidelines for foreign airlines and shipping companies on deemed import of services and resolution of long-standing disputes related to secondment,” said Saurabh Agarwal, Tax Partner, EY India.
The previous meeting of the Council, which is a joint forum of the centre and the states, was held on June 22. Finance Minister Nirmala Sitharaman had then said that a Group of Ministers (GoM) headed by Bihar Deputy Chief Minister Samrat Chaudhary would make a presentation in the upcoming meeting on the issue of rate rationalisation.
The six-member panel includes Uttar Pradesh Finance Minister Suresh Khanna, Karnataka Revenue Minister Krishna Byre Gowda, Kerala Finance Minister K N Balagopal and West Bengal’s Minister of State for Finance Chandrima Bhattacharya.
According to Sitharaman, the GoM will give a presentation on rate rationalisation in the upcoming meeting irrespective of whether the report is ready or in a draft stage.
The issue of bringing some of the petroleum products under the GST is also likely to feature in the upcoming meeting.
Revenue Secretary Sanjay Malhotra told DH in an interview recently that the Council is likely to gradually move towards starting the discussion on bringing the less controversial products like aviation turbine fuel (ATF) under the GST net first.
“The centre has made its stand clear. We want petroleum products under the GST. However, the decision has to be taken by the council on a consensus basis. I think it can’t happen overnight. There are several products like ATF, diesel and petrol. You can start with some product like ATF and move gradually,” Malhotra said.
Sources in the government feel that even if one or two petroleum products can be brought under GST within the current financial year, it would be considered a success.
Additionally, the council is expected to address the GST implications of services provided by foreign branch offices to their Indian headquarters. Industry is hopeful for positive decisions, especially on rate rationalisation.
Published 13 August 2024, 07:40 IST