Join What's App Group for Pharma Jobs

Rates of GST are going to be reviewed… AGAIN..!!

  1. Constitution Amendment bill has guaranteed compensation for 5 years for loss of revenue, post implementation of GST in 2017.
  2. Ministers from multiple states met Union Finance minister, Nirmala Sitharaman to discuss this matter.
  3. States are facing deficit. They have many responsibilities. They can not close hospitals, jails. They need to pay pension.
  4. State ministers claimed that they are embarrassed to come Delhi now and then and ask for money.
  5. The move to review rates comes to backup states for this delay of compensation.
  6. The Finance minister said there are so many rates, some are very high and some are very low or almost nil.
  7. While they will take care that essential commodities will be available at the lowest rate of GST, it has been suggested to go for merger of some rates into one single rate. Thus will avoid confusion.
  8. The rise in cess might resolve the compensation payout issues.
  9. It has been asked by GST Council to state to bring item from nil to low rate category will raise revenue too.
  10. Items like tobacco, car and soft drinks will see hike in GST rates.
  11. RBI estimated that government lost a potential revenue of ₹2crore annually when GST rate come town to 11.6% from 14.4%.
  12. If this review of rates fails , states have no choice but to either agree to settle their bills over a longer period than the five years that was provided for or agree to higher cess or expanding its scope.

Author: Niranjan Reddy

Leave a Reply