GST rates: GST Council to refer GST rates on cigarettes, bidis to rate rationalisation panel
Last week, the Centre declared the next Goods and Services Tax (GST) Council on June 22, eight-and-a-half months after its last meeting.
- Jun 18, 2024,
- Updated Jun 18, 2024 5:54 PM IST
GST Council meeting: The Goods and Services Tax (GST) Council may refer the issue of GST rates on cigarettes, bidis to the Rate Rationalisation Committee to notify maximum tax rate of 20% under CGST and 20% under SGST from the current 28%, sources told Business Today on Tuesday.
Last week, the Centre declared the next Goods and Services Tax (GST) Council on June 22, eight-and-a-half months after its last meeting. Though the meeting's agenda is not known yet, state Finance Ministers are expected to propose changes to the indirect tax system for the upcoming Union Budget during the forthcoming meeting.
During the meeting, the Fitment committee may also recommend reduce GST rate from 18% to 5% for Aircraft parts/components in aircraft maintenance
Besides, the GST council is also expected to reduce the GST rate on Carton boxes for packaging apples from 18% to 12%.
It is also expected to reduce GST on solar cookers from 18% to 5%.
The law committee has asked the GST council to exempt the compensation cess of 12% on aerated beverages.
As per reports, consumers and industry are eager for insights into the future of the GST Compensation Cess, initially intended for the first five years of the GST regime starting in July 2017. The levy of the Cess, used to recompense States to come on board, had been extended after the pandemic.
At the Council's recent meeting on October 7, 2023, led by the Finance Minister, talks began on a future strategy to introduce an additional cess or surcharge post March 2026, following the expiration of the GST Compensation Cess.
GST Council meeting: The Goods and Services Tax (GST) Council may refer the issue of GST rates on cigarettes, bidis to the Rate Rationalisation Committee to notify maximum tax rate of 20% under CGST and 20% under SGST from the current 28%, sources told Business Today on Tuesday.
Last week, the Centre declared the next Goods and Services Tax (GST) Council on June 22, eight-and-a-half months after its last meeting. Though the meeting's agenda is not known yet, state Finance Ministers are expected to propose changes to the indirect tax system for the upcoming Union Budget during the forthcoming meeting.
During the meeting, the Fitment committee may also recommend reduce GST rate from 18% to 5% for Aircraft parts/components in aircraft maintenance
Besides, the GST council is also expected to reduce the GST rate on Carton boxes for packaging apples from 18% to 12%.
It is also expected to reduce GST on solar cookers from 18% to 5%.
The law committee has asked the GST council to exempt the compensation cess of 12% on aerated beverages.
As per reports, consumers and industry are eager for insights into the future of the GST Compensation Cess, initially intended for the first five years of the GST regime starting in July 2017. The levy of the Cess, used to recompense States to come on board, had been extended after the pandemic.
At the Council's recent meeting on October 7, 2023, led by the Finance Minister, talks began on a future strategy to introduce an additional cess or surcharge post March 2026, following the expiration of the GST Compensation Cess.