The 42nd meeting of the GST Council to be held on September 19 has been now postponed. Now this meeting will be held on October 5. Many important issues are likely to be discussed in this meeting, including the reduction of tax on two-wheelers. Sources said that the 42nd meeting of the council has been postponed, as the Parliament session will continue during that time. Last month, the Center decided that the 41st and 42nd meetings of the GST Council would be held on 27 August and 19 September. However, the monsoon session of Parliament had not been decided by that time.
Buying a Car can be Cheaper Very Soon
Union Minister Prakash Javdekar had indicated last week that GST rates on vehicles (GST rates) may be cut. He hoped that soon there could be good news for the automotive industry. Javadekar said that the Auto Scrappage Policy is ready and all stakeholders have provided inputs. It will be announced very soon. Talking about the possibility of GST reduction in the vehicle segment, he said that the Finance Ministry is considering this proposal. However, they do not have detailed information about this. He said there is likely to be a cut for two-wheelers, three-wheelers, public transport services and four-wheelers.
28 percent GST on the Two-Wheeler
Finance Minister Nirmala Sitharaman also said this during a conversation with Industries last month. The Finance Minister has said that proposals to revise rates will be considered by the GST Council. Currently, GST is to be paid at 28 percent on two-wheelers. Any decision on GST rates will be taken by the GST Council, which is headed by the Finance Minister. Finance and taxation ministers from all states and union territories will also attend the GST Council meeting.
Main Issue in the GST Meeting
The GST Council meeting to be held on October 5 will be very important, as there is a dispute between the Centre and the states on the issue of financing the reduction of GST collection by Rs 2.35 lakh crore. According to the Center’s calculation, a reduction of Rs 97,000 crore is related to the implementation of GST. The remaining 1.38 lakh crore rupees is due to the impact of Covid-19 on the revenue of the states. The economy has been severely affected by the 68-day nationwide lockdown and sanctions caused by the Coronavirus epidemic. It has jumped 89% in 2019-20 due to a steep decline in tax revenue.
The Government gave Two Options to Raise Debt
The center last month gave the state two options to raise loans of Rs 97,000 crore or Rs 2.35 lakh crore from the market through a special facility provided by the Reserve Bank. The center also proposed extending compensation fees on luxury and non-perishable goods from 2022, so that states can pay the debt.
This is how States Stand
Six non-BJP ruling states – West Bengal, Kerala, Delhi, Telangana, Chhattisgarh and Tamil Nadu have written to the Center opposing the option of states taking out loans. Sources said that by September 8, seven states had informed the Center about their choice. Gujarat, Bihar, Madhya Pradesh, Karnataka and Tripura have opted for a loan of Rs 97,000 crore. Meanwhile, Sikkim and Manipur have opted for a loan of Rs 2.35 lakh crore from the market.