Abhishek Raja
Upcoming GST Council meet is special as it is 50th GST Council Meet.
GST Council to meet on June 22-23 to discuss key issues. The GST Council is scheduled to meet on June 22-23 to discuss a number of key issues, including the extension of the compensation cess, rationalization of rates, and the implementation of e-way bill 3.0.
The compensation cess was introduced in 2017 to compensate states for the loss of revenue they incurred due to the implementation of GST. The cess is currently levied at a rate of 1% on all inter-state supplies of goods and services. The GST Council is likely to discuss the extension of the cess beyond June 2022.
The GST rates are currently spread across five slabs: 5%, 12%, 18%, 28%, and 30%. The GST Council is likely to discuss the rationalization of these rates, with a view to reducing the number of slabs and making the tax regime simpler.
The e-way bill is an electronic document that is required to be generated for the movement of goods across state borders. The current version of the e-way bill, e-way bill 2.0, was implemented in 2020. The GST Council is likely to discuss the implementation of e-way bill 3.0, which is expected to be more efficient and user-friendly.
Key Issues to be Discussed
- Extension of the compensation cess: The compensation cess was introduced in 2017 to compensate states for the loss of revenue they incurred due to the implementation of GST. The cess is currently levied at a rate of 1% on all inter-state supplies of goods and services. The GST Council is likely to discuss the extension of the cess beyond June 2022.
- Rationalization of rates: The GST rates are currently spread across five slabs: 5%, 12%, 18%, 28%, and 30%. The GST Council is likely to discuss the rationalization of these rates, with a view to reducing the number of slabs and making the tax regime simpler.
- Implementation of e-way bill 3.0: The e-way bill is an electronic document that is required to be generated for the movement of goods across state borders. The current version of the e-way bill, e-way bill 2.0, was implemented in 2020. The GST Council is likely to discuss the implementation of e-way bill 3.0, which is expected to be more efficient and user-friendly.
Expected Outcomes
The outcome of the GST Council meeting is expected to have a significant impact on the Indian economy. The extension of the compensation cess will ensure that states continue to receive the revenue they need to meet their expenditure commitments. The rationalization of rates will make the tax regime simpler and more efficient. The implementation of e-way bill 3.0 will help in better tracking of goods and services movement and curb tax evasion.
CAclubindia
