Union finance minister Nirmala Sitharaman will chair the first Goods and Services Tax (GST) Council meeting of this financial year Today. From compensation to states to tax waivers on various medicines, medical devices, and health services amid the second wave of the coronavirus pandemic a host of issues will be discussed at the 43rd GST Council meeting, according to reports. This will be the first GST meet after a gap of seven months.
Here are the key things to expect from 43rd GST meet Today:-
1) GST Compensation to the states
The GST Council is expected to discuss the compensation shortfall to the states amid the coronavirus pandemic. The shortfall in GST compensation payable to states in the current fiscal has been estimated at Rs 2.69 lakh crore. Several states want an extension of the GST compensation beyond July 2022 as economic uncertainty continues, according to ANI reports.
2) GST on medical devices and health services
The second wave of the COVID-19 pandemic severely hit the country. Amid this, several states asked for the reduction of GST rates on essential COVID-19 supplies. Rajasthan, Punjab, Chhattisgarh, Tamil Nadu, Maharashtra, Jharkhand, Kerala, and West Bengal devised a joint strategy to press for a zero tax rate on COVID essentials, PTI reported.
3) Multiple GST rate-slabs
The rationalization of multiple GST rate slabs has been a long-standing demand of the industry. Some experts believe that the GST Council may look at ways to rationalize the GST rates and reduce the number of slabs in Friday’s meet.
4) Extension of GST filing deadlines
Earlier in May, the finance ministry had extended timelines of various GST compliance for March and April considering the ongoing coronavirus pandemic. As several states announced local lockdowns till the end of this month, the GST Council is likely to announce another set of extension for May and June.