3 days ago
GST Council to Address Blocked Credit After Yearlong Gap
The GST Council is a group that helps decide India’s GST rules.
It will meet in Delhi on September 12 after not meeting for more than a year.
The members may discuss cases where businesses pay more tax on things they buy than they collect on what they sell.
This can leave businesses with unused tax credit.
They may also discuss making GST registration and paperwork easier.
Experts want the Council to solve older tax problems and reduce confusing rules.
Car dealers say they are owed about Rs 2,500 crore after GST rates changed.
The meeting will be the Council’s first since the GST 2.0 rate changes last year.
The GST Council will hold its 57th meeting on September 12 in Delhi, after a gap of more than a year.
Blocked input tax credit is likely to be discussed, particularly where inputs are taxed at 18% but final products or services at 5%.
The Council may consider uniform registration rules, automated registration processes and cancellations, and simpler documentation requirements.
Experts have urged action on legacy tax positions, supplier-related credit hardships, compensation cess transitions, litigation and compliance costs.
Automobile dealers are seeking resolution of approximately Rs 2,500 crore in GST and cess dues linked to the rate overhaul.
- Who
- The GST Council, chaired by the Union Finance Minister and comprising representatives of 28 states and three union territories.
- What
- A meeting to consider blocked input tax credit, GST registration, compliance rules and transition-related issues.
- Where
- Delhi.
- When
- September 12; it will be the Council’s first meeting in more than a year.
- Why
- The meeting is expected to address issues arising from GST 2.0, including rate changes, documentation and unresolved tax transitions.
Key facts
- Meeting
- The 57th GST Council meeting is scheduled for September 12.
- Gap
- The Council has not met for more than a year.
- GST 2.0 rates
- The revised structure includes broad slabs of 5% and 18%, plus a special 40% rate for luxury goods.
- Likely agenda
- Blocked input tax credit, uniform registration, automated processes and simpler compliance documentation.
- Automobile dispute
- The Federation of Automobile Dealers Associations has sought approximately Rs 2,500 crore in dues.
- Council composition
- The Council includes representatives of 28 states and three union territories.
Quotes
Manoj Mishra
Partner and Tax Controversy Management Leader at Grant Thornton Bharat
“The focus should now shift from incremental changes to improving the quality of the GST framework itself.”
indianexpress.com
Sources
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