Karnataka Chief Minister Basavaraj Bommai-led group of ministers (GoM), GST council has set up the same in the former year to recommend the methods towards increasing the revenue by rationalizing tax rates and amending the anomalies in the tax framework, seems to meet on June 17. Ministers would discuss the proposal to transfer the rate slabs from the current GST rate 5% to 7 or 8 percent and from 18% to 20%.
GoM who provides the time to submit its report prior to the subsequent GST council meeting may indeed discuss filtering the list of the privileged things beneath the GST regime. The panel of the state ministers might discuss the proposal to amend the inverted duty structure in textiles.
An inverted duty structure pointed towards the case in which the tax rate on the inputs brought would exceed that on the finished goods.
The GoM member states consist of Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Goa, and Kerala. The panel, which was made in September former year, last met in November 2021. After the GoMs suggestions get finalized the same would be drawn to the council in the subsequent meeting for the final decision. The GST official that would be the highest decision-making body under the GST regime, will meet in the previous week of June.
In the previous month, the Supreme Court mentioned the GST council is the only body that recommends and its recommendations would not bind the center or states. The court ruled that the GST council’s recommendations would need a persuasive value. The court indeed ruled that both Parliament along with the state legislatures would equally legislate on the GST concern matters.
In the current times there are 4 GST slab rates 5%, 12%, 18%, and 28%. The 18% slab secures 480 items, from which about 70% of the GST collections arrive. While there is an exempt list of the things such as unbranded and unpacked food items which do not be imposed with the levy.
GST collections in May attain the Rs 1,40,885 cr and is a 44% year-on-year jump. But the same was a 16% lower with respect to the GST collections in April. The total Gross revenue collected in May 2022 was Rs 1,40,885 cr out of which CGST is Rs 25,036 crore, SGST is Rs 32,001 crore, IGST is Rs 73,345 crore (including Rs 37469 crore collected on import of goods) and cess is Rs 10,502 crore (along with Rs 931 crore collected on import of goods).
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This was the 4th time the monthly GST collection crossed the Rs 1.40 lakh cr mark since the start of the GST and the 3rd month consecutive since March 2022. “The revenues for the month of May 2022 are 44 per cent higher than the GST revenues in the same month last year of Rs 97,821 crore. During the month, revenues from import of goods were 43 per cent higher and the revenues from the domestic transaction (including import of services) are 44 per cent higher than the revenues from these sources during the same month last year,” specified by the Finance ministry.
