FM Nirmala Sitharaman after taking charge of the Union Finance Minister, is ready to preside over the most awaited 53rd GST council meeting. The very session addresses distinct crucial issues affecting distinct sectors of the economy, promising deliberations and resolutions.
Fitment Committee’s Set Proposal for Further Discussion
The GST Council in a meet nominated Fitment Committee is anticipated to convene and scrutinize several proposals for detailed deliberation. The considerations of the committee agenda are as follows-
Tax Proposals for Scraps: Discussion about the proposals for describing the tax applicability on metal and steel scrap, which has been long-standing by the industry for over a year.
GST Suggestion on Petroleum Product: The Petroleum Ministry has suggested a 5% GST on ATF and 12-18% on natural gas.
Modification in Inverted Duty Structure: A department’s recommendation for the Promotion of Industry and Internal Trade (DPIIT) strives to rectify the inverted duty structure on items such as textiles, leather, and pharmaceuticals.
GST ITC Clarification: The committee might ask to solve the issues of ITC claims across numerous sectors which is long-awaited.
Pending Discussion for GST Council
The GST Council after a nine-month break, has a comprehensive agenda, with many pending items for discussion:
ITC Clarifications for Telecom: ITC applicability clarifications for telecom services and spectrum levies are expected.
Streaming Business Features: The council to introduce the measures to improve compliance and facilitate the business functionally.
Justification in New GST Rate The council is anticipated to alter the current Group of Ministers (GoM) on Rate Rationalisation, led by UP Finance Minister Suresh Khanna, and positioned a new timeline for a detailed report.
GST Levy on Foreign Airlines and Shipping Lines Proposals to waive services generated between head offices and local branches of foreign operators from GST are under consideration.
Biometric Verification: A timeline for obligatory Aadhaar-based biometric authentication of GST assesses is anticipated to be approved.
Expectations of the 53rd GST Council meeting
The consequences of the 53rd GST Council meeting have been awaited by the industry experts and stakeholders, anticipating the resolutions and clarifications-
GST Rate Rationalisation: Experts expect discussions on including low-impact petroleum products such as natural gas within the GST framework, which furnishes advantages to businesses.
Compliance and Resolution: Optimism is there for an amnesty scheme to solve the initial year issue and review pre-deposit percentages, aligning them with the tax regime service.
Other Issues: Anticipation of clarifications on transactions between affiliated parties, ESOP taxation, and ISD regulations.
For addressing various pressing issues and enhancing the GST framework, the 53rd GST Council meeting is an important platform marking a substantial step in facilitating tax policies and compliance in India.
