The Finance Ministry announced that the government will raise taxes on certain goods and services to 18 per cent from current 12 cent, after the two-day 47th GST Council Meeting that will be made effective from 18 July, 2022. The Goods and Services Tax Council decided to rationalise tax rates on certain goods and services to remove an inverted duty structure, said Finance Minister Nirmala Sitharaman in Chandigarh. Among other things, the GST Council also approved an increase in tax on petroleum and coal bed methane to 12 per cent from 5 percent earlier, besides raising rates for packaged food items. While the GST on e-waster was revised from current 5 per cent to 18 per cent. However, the GST Council took no decision on extending beyond this month the compensation paid to states for revenue lost from the implementation of GST. A final decision is likely to be taken at the next meeting of the council in August. When a nationwide Goods and Services Tax (GST) subsumed 17 central and state levies from July 1, 2017, it was decided that states will be compensated for any loss of revenue from the new tax for five years. With two years being lost in the pandemic, states have sought an extension of this compensation mechanism. The GST Council also deferred decision on levying a 28 per cent tax on casinos, online gaming, horse racing and lottery pending more consultations with stakeholders, Union Finance Minister Nirmala Sitharaman said.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
