GST council meet ends without a decision on rates

GST council meet ends without a decision on rates

The council was to finalise the rate structure on Wednesday, the Union Finance Minister had said.
The third round of deliberations in the Goods and Services Tax Council ended in New Delhi, a day ahead of schedule, without a decision on rates structure. A participant in the meeting said that the Council decided to discuss the rates structure in the next two meetings. These, it was decided, will take place on on November 3 and 4, and later on November 9. The Council which was meeting for the second day, as part of a three-day meeting, cut it short as states failed to come to a consensus on the rates. A member of the Council said that the states could not agree on the centre’s proposal for imposing a cess over and above the GST on ultra-luxury items such as big cars. Kerala Finance Minister Thomas Isaac said that states could not agree on the four-slabs structure proposed by the Centre. He added that it was still possible, in his view, to meet the April 1, 2017 deadline for rolling out the GST. Revenue Secretary Hasmukh Adhia said that the whole discussion in the first GST Council meeting will be revisited in the next meeting as states said it is no longer possible to segregate services and goods. “For instance,” he said, “restaurants register for both service tax and VAT.” Mr. Adhia said that the Council could not take up for discussion the Centre’s proposal for fixing the GST on gold at 4 per cent. He also said that though the formula for determining the compensation amounts due to states for making good the losses on their revenue collections…

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