Tag: GST Council keeps tax rate same

Economic Policy GST Council keeps tax rate same, but defers key reforms The Goods and Services Tax (GST) Council met over video conference under the chairmanship of Union Finance Minister Nirmala Sitharaman Important decisions taken at the council Decision to scrap the 5% GST levy on a cattle feed ingredient — husk of pulses Reduction of the levy on ethyl alcohol used by refineries to blend with petrol to 5% from 18% Extending the 5% tax levy for ethyl alcohol, allowed for oil marketing companies to blend with petrol, to refineries will further reduce our dependence on imported crude and save the foreign exchange. Decriminalisation of petty GST offenses. Doubling of threshold limits of tax amounts for initiating prosecution from ₹1 crore to ₹2 crore for all offences other than those involving fake invoices. The compounding amount under certain offenses has been reduced from 50% to 150% of the amount, to 25% to 100% of the amount involved However, the decisions would take time to implement as States would have to amend their respective GST legislations, while the Centre would include these changes in the Finance Bill of 2023-24. About GST: GST was launched on July 1, 2017 through 101st Constitution Amendment Act, 2016 by amending the Artcile 279A GST had replaced the old Indirect tax regime in India  It was introduced with the idea of “One Nation- One Market- One Tax”. 2022 marks the Fifth Anniversary of GST. GST is an indirect, multi-stage, consumption-based tax system. It subsumes several domestic indirect taxes like service tax, purchase tax, value-added tax, excise duty, and others under one head. It does not include Petroleum, Liquor, and stamp duty. The Three taxes application under the GST are CGST (Central) SGST (State) and IGST (integrated) The Four tax slabs are 5%, 12%, 18%, 28%.…