GST Compensation Cess Cleared, GoM Report On GST Appellate Tribunal, Pan Masala Accepted

GST Compensation Cess Cleared, GoM Report On GST Appellate Tribunal, Pan Masala Accepted

Finance Minister Nirmala Sitharaman, after the 49th GST council meeting, announced some major decisions take by the apex taxation body. The Finance Minister said that the entire dues on the pending balance of the GST compensation cess of Rs 16,982 crores for June will be cleared.

The 49th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman was also attended by Minister of State Pankaj Chaudhary, Finance Ministers of States and UTs, and senior officers of the government.

The GST council also decided to reduce the Goods and Service Tax on liquid jaggery, pencil sharpeners, and certain tracking devices. 

Highlights From the 49th GST Council Announcement 

– Finance Minister Nirmala Sitharaman said that the entire balance of GST compensation which is to a total of Rs 16,982 crores for June will be cleared.

– She added that although this amount is not available in the compensation fund as of today, we’ve decided to release this amount from the Centre’s resources. The same amount will be recouped from the future compensation cess collection.

– With this release, the Centre would clear the entire provisionally admissible Compensation Cess dues for five years as envisaged in the GST (Compensation to States) Act, 2017, Finance Minister added. 

– Nirmala Sitharaman also informed that the Centre will clear the admissible final GST Compensation to those states who’ve provided revenue figures certified by the Accountant General which amounts to Rs 16,524 crores.

– We also released Rs 16,524 crore to six states based on the AG certificates we have received, Sitharaman said. 

-On other major decisions from the 49th GST council meeting, GST on pencil sharpeners has been reduced from 18 per cent to 12 per cent.

– GST on a type of liquid jaggery has been reduced to nil from 18 per cent if it’s loose. If it’s pre-packaged and labelled, the tax rate on this will be 5 per cent.

– Nirmala Sitharaman also said that there is a reduction in GST on tags tracking devices or data loggers which are affixed on durable containers, from 18 per cent to nil, subject to some conditions. 

– Finance Minister also said that two GoM (Group of Ministers) reports have been accepted. One with slight modifications and the other with the understanding that some small amendments.

-GoM report on taxation for pan masala accepted.

-Decision on GST Appellate Tribunal accepted with change in language. The modification in the draft will be circulated in the next 5-6 days, FM said. 

-Exemption on coal rejects supplied by and to the washeries approved by Council.

-The finance minister further said the GST Council has decided to rationalise late fees on the filing of annual GST returns after the due date. 

– GST council also decided to tax services supplied by courts and tribunals under the reverse charge mechanism. 

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