A Tweet from Finance Minister’s office declared that the “47th GST Council meeting to be held on June 28-29, 2022 in Srinagar. The council will be chaired by Finance Minister, Nirmala Sitharaman. For the second time, the GST Council meeting is taking place in Srinagar. The 14th meeting of the Council was conducted on May 18 and 19 in the city before the Goods and Services Tax (GST) came into effect on July 1, 2017. The two-day meeting authorized the GST rates for 1,211 goods.
What is GST and how does it work?
GST abbreviates for Good and Services Tax. It is the single indirect tax for the entire country. It is an indirect tax that was implemented to replace a variety of previous indirect taxes, including the value-added tax, service tax, purchase tax, excise duty, and others. GST is a tax that India imposes on the supply of specific products and services.
It came into existence in 2016 through 101st Amendment Act in the Indian constitution under article 246A. the article states that Parliament has exclusive power to make laws concerning goods and services tax where the supply of goods, or services, or both takes place in the course of inter-State trade or commerce. And the Legislature of every State has the power to make laws concerning goods and services tax imposed by the Union or by such State.
GST working can be elucidated below:
Manufacturer: The manufacturer is responsible for paying GST on both the raw materials used to make the product and the value-added during production.
Service Provider: In this case, the service provider is responsible for paying GST on both the product's purchase price and the value that has been added. However, the manufacturer's tax payment may be deducted from the total GST that must be paid.
Retailer: The retailer is responsible for paying GST on both the merchandise they received from the distributor and the margin they added. However, the retailer's tax payment may be deducted from the total amount of GST that must be paid.
Consumers: GST needs to be paid on the purchased item.
What is GST Council and how does it function?
Goods and Services Tax Council (GST Council) is a constitutional body for making recommendations to the union and state governments on issues related to goods and services tax. Therefore in order to implement GST, a Council under article 279A of the Indian Constitution has been constituted by the president within 60 days of commencement of this article. The following individuals will make up GST Council which will be a combined forum of the Centre and the States: -
Union Finance Minister – Chairperson
The Union Minister of State, responsible for Revenue of finance – Member
Any other Minister proposed by each State Government, including the Minister in charge of finance or taxation – Members
The following issues will be addressed by the GST Council's recommendations to the Union and State:
Principles of levy, model Goods and Services Tax Laws, the designation of Goods and Services Tax levied on supplies made during Inter-State Trade or Commerce under Article 269A, and the principles governing the place of supply;
For raising funds during any Natural Calamity or Disaster, or any Special Rate or Rates for a Specified Period, to raise Additional.
Any Other Goods and Services Tax-Related Matter, as the Council May Determine.
The GST inclusion of numerous taxes, cess, and surcharges.
Information on the items and services that will be subject to GST or excluded from GST.
Services and goods will be free from GST at a certain threshold amount.
On GST rates, including the floor rate with GST bands and any temporary special rate to set up resources for a natural disaster.
Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand should all receive special consideration.
GST model law, GST levy principles, and GST principles that will control the place of supply
47th council Meeting
47th edition of the GST Council meeting is to be held in Srinagar, it is a two-day meeting on 28 – 29 June 2022. The meeting will be chaired by Union Finance Minister, Nirmala Sitharaman, and comprising state counterparts. This meeting gains relevance since it is anticipated that it would cover both the tax rate on casinos, racetracks, and internet gaming as well as the report of the panel of state ministers on rate rationalization. It is said that the final report of the panel will require some more time, and the Group of Ministers (GoM) is likely to consider potential modifications in tax slabs. The GoM is required to review items subject to inverted duty structures to reduce refund payments and to review the GST exempt list to broaden the tax base and prevent input tax credit (ITC) chain breaks.
In order to identify fraudulent input tax credit claims and speed the settlement of legitimate ones, the Council may also make some changes to the summary return and monthly tax payment form GSTR-3B into consideration. It is also said that the updated form will clarify the gross input tax credit that the taxpayer is entitled to, the amount that was claimed in a specific month, and the net amount that is still in the taxpayer's ledger. A system of valuing these services to levy this tax was also developed by the group of state ministers, who also unanimously resolved to raise the tax rate on them from 18 to 28 percent. Currently, a GST of 18% is applied to gambling establishments, horse racing, and internet gaming services.
Conclusion
GST legislation has replaced multiple taxes, which made India a more integrated nation. It improved the efficiency of the tax net and substantially added to the financial growth of the country. Therefore it is necessary for a developing country like India, as per the changes in the society and needs of the country the legislation needs to be ruled accordingly, to ascertain the benefit of the public as well as the nation.
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