No decision on extending GST support to States
GST Council asks GoM to re-deliberate tax rate on horse racing, online gaming, casinos by July 15, says FM Sitharaman
image for illustrative purpose
Compensation Contour
- GST effective from July 1, 2017
- Centre decided compensation to States for 5yrs
- But 2 yrs lost due to Covid
- States demand extension of compensation
Effective from July 18
- GoM recommended 28% GST on online gaming at full value of consideration
- 18% GST on bank cheque book/loose leaf cheques
- 12% on maps, atlas, and globes
- Unbranded, but pre-packed curd, lassi, butter milk, food items, grains, etc., brought under GST net from exemption list
- Writing, printing, or drawing ink will also become costlier
Chandigarh: The GST Council on Wednesday took no decision on extending beyond this month the compensation paid to States for revenue lost from the implementation of GST.
Puducherry finance minister K Lakshminarayanan said all States sought an extension of the compensation mechanism, but no decision has been taken. A final decision is likely to be taken at the next meeting of the council in August.
When a nationwide Goods and Services Tax (GST) subsumed 17 central and state levies from July 1, 2017, it was decided that States will be compensated for any loss of revenue from the new tax for five years. With two years being lost in the pandemic, states have sought an extension of this compensation mechanism.
The Council - the highest decision-making body of the indirect tax regime, which is headed by Union Finance Minister Nirmala Sitharaman and comprises representatives of all states and UTs - discussed the issue at a meeting here but did not take a decision. Officials said a group of ministers (GoM) have been asked to further deliberate on the tax rate and the method of valuation of taxing online gaming, casinos and horse racing.
A two-day meeting of the panel considered a report of the GoM,but deferred a decision as Goa and some others wanted to make more submissions.
