A R DAS / NEW DELHI
The Goods and Services Tax, GST Council has decided to clear the entire due on the pending balance of the GST compensation to the States as of today.
Addressing media after chairing the 49th meeting of GST Council here, Union Finance Minister Nirmala Sitharaman said that the pending balance of the GST compensation to the tune of 16 thousand 982 crore rupees for June, 2022 will be cleared.
She added that although this amount is not really available in the compensation fund as of today, so, the Centre has decided to release this amount from its own resources and the same amount will be recouped from the future compensation cess collection. Ms Sitharaman also said that with this release, the Centre would clear the entire provisionally admissible compensation cess dues for five years as envisaged in the GST (Compensation to States) Act, 2017.
The Finance Minister also announced to lower the GST rates on Raab or liquid jaggery from 18 per cent to a nil if it is loose and in case it is pre- packaged and labelled then it will attract GST of five per cent. She said, The GST rate on Pencil Sharpener has been reduced to 12 per cent from existing 18 per cent while on tags tracking devices or data loggers which are affixed on durable containers, it has been reduced from 18 per cent to nil, subject to some conditions.
The Finance Minister also announced GST exemptions on coal rejects when they are supplied to and by a coal washery and GST exemptions for services by the National Testing Agency for conducting entrance examinations for admission to educational institutions. She also said that Council has decided to rationalise the late fee on delayed filing of annual returns or GSTR9 for 2022-23 onwards for small taxpayers with an annual turnover of up to 20 crore rupees. She said, the GST Council decided to tax services supplied by courts and tribunals under the reverse charge mechanism.
She said that the recommendations of the Group of Minister, GoM on capacity based taxation and special compensation scheme in certain action sectors mostly related to Paan Masala and Gutkha has been taken on board in today’s GST Council meeting.
She said, the recommendation of another GoM on establishment of GST Appellate Tribunal has been accepted with change in language. and the modification in draft will be circulated in the next 5 to 6 days.