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Aug 27, 2020 09:57 AM IST | Source: Moneycontrol.com
GST Council Meeting LIVE Updates: Govt likely to discuss compensation to states, revenue shortfall
GST Council Meeting LIVE Updates: Finance Minister Nirmala Sitharaman will chair the meeting, which will begin at 11 am.
The 41st GST Council will be chaired by Finance Minister Nirmala Sitharaman. The meeting will begin at 11 am, where the Council is expected to discuss issues such as compensation to states and GST rates revision. The GST Council might focus on issues such as compensation to states, revenue shortfall.The Centre had in March sought Attorney General K K Venugopal's inputs on the legality of market borrowing by the GST Council to make up for any shortfall in the compensation fund.
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Finance Ministry to examine if sin tax applies to soft drinks
The Finance Ministry will soon evaluate if consumption of bottled non-alcoholic, carbonated beverages is a sin in India after lobbying by a group of companies for tax relief.
The Indian Beverage Association (IBA), the controlling body of the non-alcoholic beverage industry, has written a note to Finance Minister Nirmala Sitharaman asking for tax relief for a sector hit hard by the coronavirus pandemic. In short, the note said if other food and beverages containing sugar can get a reduction in goods and services tax (GST), why not colas, and other carbonated soft drinks?
GST Council Meeting LIVE Updates | Finance Ministry sources say dealing with GST compensation shortfall is not alone centre’s responsibility, CNBC-TV18 reported. It’s a force majeure situation, centre and states must collectively resolve it. GST Council must put its collective decision making mechanism at work and resolve this critical issue.
GST Council Meeting LIVE Updates | GST compensation cess for FY21 seen at Rs 26,000 crore a month, according to CNBCTV-18 report citing finance ministry sources. Such difficult financial situation has never arisen in the past century and there’s a visible huge gap between collection of cess and payment to states/UTs.
Here's why the two-wheeler industry desperately seeks GST rate cut
Finance Minister Nirmala Sitharaman during an industry interaction on August 26 said two-wheelers are neither luxury goods nor sin goods, and hence, merit a Goods and Services Tax (GST) rate revision. Two-wheelers currently attract 28 percent GST. Sitharaman said a rate revision proposal would be taken up by the GST Council.
Unlike four-wheelers, two-wheelers are the backbone of rural and semi-urban India. Experts have been warning of a slowdown for some time now with falling two-wheeler demand among the key indicators.
Good Morning! Welcome to our LIVE coverage of the 41st GST Council, which will be chaired by Finance Minister Nirmala Sitharaman. The meeting will begin at 11 am, where the Council is expected to discuss issues such as compensation to states and GST rates revision.