43rd GST Council Meet
Source : Indian Express
GS III : Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment
Why in News ?
43rd GST Council Meet. This was the first meeting of the GST Council in the financial year 2021-22. The council’s last meeting was held in October last year.
Key Facts
- Council has decided to exempt export of relief items and is being extended till August 31, 2021
Photo by Nataliya Vaitkevich from Pexels - The council decided to put Amphotericin B, a key medicine for the treatment of black fungus, in the list of items exempted from IGST.
- Import of Covid-related relief items, even if purchased or meant for donating to government or to any relief agency upon recommendation of state authority, to be exempted from IGST till August 31, 2021.
- Amnesty Scheme to reduced late fee returns. Small taxpayers can file pending returns under this scheme.
- Annual Return Filing will continue to be optional for 2020-21 for the small taxpayers with turnover less than Rs 2 crore.
- Reconciliation statements for 2020-21 need to be furnished by the taxpayers with a turnover of Rs 5 crore or more.
- GST compensation cess : The rough estimate is that the centre will have to borrow Rs 1.58 lakh crore and pass it on to states.
Amnesty scheme aims to provide relief to taxpayers regarding late fee for pending returns.
What is GST compensation cess ?
- GST Compensation Cess is levied by the Goods and Services Tax (Compensation to States) Act 2017.
- The object of levying this cess is to compensate the states for the loss of revenue arising due to the implementation of GST on 1st July 2017 for a period of five years or such period as recommended by the GST Council.
GST Council
- As per Article 279A of the amended Constitution, the GST Council is a joint forum of the Centre and the States.
- Members
- Union Finance Minister
- The Union Minister of State, in-charge of Revenue, Min. of Finance
- The Minister In-charge of Finance or Taxation or any other Minister nominated by each State Government
- The Council is empowered to make recommendations to the Union and the States.
- Taxes, cesses and surcharges levied by the Union, the States and the local bodies.
- Goods and services that may be subjected to, or exempted from the goods and services tax.
- Any other matter relating to the goods and services tax, as the Council may decide.
- Decision Making
- Every decision of the GST Council shall be taken at its meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting.
- Central Government shall have a weightage of 1/3rd of the votes cast.
- The votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting.
- One half of the total number of members of the GST Council shall constitute the quorum at its meeting.
Daily Current Affairs : Click Here
[…] 43rd GST Council Meet […]