30th GST Council Meeting Decisions

By | September 28, 2018
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(Last Updated On: September 28, 2018)

30th GST Council Meeting

The 30th GST Council Meeting is  covened on 28th September 2018 (Friday) through Video Conferencing.

Decisions of 30th GST Council Meeting

1 Calamity Cess

As per Article 279A  of Constitution , the GST Council is empowerd to impose GST in case of calamity

Now following are the questions

  • whether this Tax should be state specific or on All India Levy ?
  • Whether it should be confined to luxury and sins products ?.
  • on which natural calamity it should be imposed ? if there is flood in two districts of states whether it GST will be imposed ?

Suggestion : 7 members Group of Minister will be formed to make recommendations. Representative of following states will be there

  1. North east
  2. Hill States
  3. Coastal states

During the 30th Meeting of the GST Council held here today, the proposal of the State of Kerala for imposition of Cess on SGST for rehabilitation and flood affected works was discussed in detail.  The Council decided to constitute a 7-Member Group of Ministers (GoM) to examine this issue in depth.

Accordingly, the Union Finance Minister, Shri Arun Jaitley, has approved the constitution of a Group of Ministers today (28thSeptember, 2018) to examine the issue regarding ‘Modalities for Revenue Mobilisation in case of Natural Calamities and Disasters’.

Shri Sushil Kumar Modi, Deputy Chief Minister of Bihar is the Convenor of the GoM and the following are its other Members:

  1. Dr. Himanta Biswa Sarma, Finance Minister, Assam;
  2. Dr. T.M. Thomas Isaac, Finance Minister, Kerala;
  3. Shri Sudhir Mungantiwar, Finance & Excise Minister, Maharashtra;
  4. Shri Sashi Bhusan Behera, Finance & Excise Minister, Odisha;
  5. Shri Manpreet Singh Badal, Finance Minister, Punjab;
  6. Shri Prakash Pant, Finance Minister, Uttarakhand.

The GoM has to submit its report by 31st October, 2018.

2. Revenue Deficit states

Finance Secretary will visit the states in which there is shotfall of GST and will find out the reasons.

Press Conference by Sh Arun Jaitely after 30th GST Council Meeting

Expectations from 30th GST council meeting :

Following were the expections of 30th GST Council Meeting

1. Rationalisation of GST rates on cruise tourism

It is expected that the 30th GST Council Meeting will discuss on the rationalizing GST rates on cruise tourism or exempting them completely.

Currently, 18% is the rate on the supply of cruising services in cruise tourism industry.

2. Simplification and Automation of GSTR-9C

Though the reconciliation statement which is to be filed with the Annual return GSTR -9  has been notified,the 30th GST Council Meeting was expected to discuss on its simplification and further automation of form. This will reduce the cost and time resources for the taxpayers.

3. Compliances for MSMEs

In the 29th GST council meeting, a committee was formed by the council to look after the compliances of MSMEs and prepare a report on it further. It is expected that the 30th GST Council Meeting will be discussing the matters reported by the committee for MSMEs.

4. Flood-relief cess for the State of Kerala

30th GST Council meeting  is expected to take up the discussion on the Kerala government’s demand for levying a cess to collect resources to meet the cost of recovery from the floods occurred few days back.

Pros and cons of multiple options including legal amendment, cess on specific items or on all items or on State GST (SGST), whether the cess should be Kerala specific or national level will be discussed in the meeting, government officials said.

“It is going to be a freewheeling discussion about the various options before the Council, in case it agrees to levy a cess for natural calamities. A final decision on the cess levy is unlikely in one meeting as even an option like legal amendment will take time to be implemented,” a senior government official said.

Explaining the nuances of the discussions held so far with Kerala over the topic of levying cess, the official said a cess on SGST, as proposed by the state, will require tweaking of the whole returns software of the GSTN. Also, concerns have been raised about consumers shifting to neighbouring states of Tamil Nadu or Karnataka to buy goods, especially highly taxed goods like cars, where even a 1 per cent extra levy will incentivise consumers to opt for purchases outside Kerala.

“If it’s levied only on SGST within Kerala, then for those businesses who purchase in Kerala for sales outside the state, the levy will get exported and it’s still unclear how it will be refunded,” the official said.

The other option could be to levy extra cess on all goods nationwide for a defined period of time, but even then the official explained, it would be along the lines of sugar cess, which many states had opposed. “For that option as well, the law would need to be amended to include natural calamities as the factor for cess apart from the current compensation on account of implementation of GST. A legal matter regarding the validity of compensation cess is already pending in the Supreme Court and till the Apex court gives its final order, even the Law Ministry will not give its view on the matter, as it did not for sugar cess also,” the official said.

The Constitution (One Hundred and First Amendment) Act empowers GST Council to recommend any special rate for a specified period to raise additional resources during any natural calamity or disaster. The GST (Compensation to States) Act, however, states that cess would be levied for the purposes of providing compensation to the States for loss of revenue arising on account of implementation of GST for a period of five years or for such period as may be prescribed by the GST Council. For any new cess, the reason for levy of compensation cess needs to be tweaked, lest its validity gets struck down by the apex court, officials said.

Kerala’s Finance Minister Thomas Isaac had said last week after meeting Union Finance Minister Arun Jaitley said, “The Union Finance Minister said that the GST Council should explore the possibility of an all-India cess to help states like Kerala in times of need. It will be discussed in the GST Council. This will be for a stipulated period…all states will contribute,” he had said.

Rerer GST Disaster Cess may be discussed in 30th GST Council meeting

5. GST on ATF(Aviation turbine fuel)

Finance Minister has pitched in to bring ATF under GST ambit. Rising jet fuel prices and lowering air ticket prices have pushed airlines on the brink of crisis. So there could be discussion about ATF in 30th GST Council Meeting

The move to bring ATF under GST will mostly affect those states that have more airports.

6  Discussions on Advance Authority rulings 

some representations from states regarding Advance Authority rulings will also be taken up in the 30th GST Council Meeting

 

Also Refer  All GST Council Meetings till date

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

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