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Tag: GST Council

  • GST Council Forms GoM To Review Tax Rate On Health, Life Insurance; Report By Oct 30 | Economy News

    New Delhi: The GST Council on Sunday constituted a 13-member Group of Ministers (GoM) to suggest GST rate on premiums of various health and life insurance products and submit its report by October 30.

    Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM. The members of the panel include members from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana.

    The 54th GST Council meeting on September 9 decided to set up a GoM to examine and review the present tax structure of GST on life and medical insurance. A final call by the Council on the taxation of insurance premiums is likely to be taken in the next meeting in November based on the GoM report.

    Currently, 18 per cent of Goods and Services Tax (GST) is levied on insurance premiums. The Terms of Reference (ToR) of the panel also include suggesting tax rate of health/medical insurance including individual, group, family floater and other medical insurance for various categories like senior citizens, middle class, persons with mental illness. Also, suggest tax rates on life insurance, including term insurance, life insurance with investment plans whether individual or group and re-insurance.

    “The GoM is to submit its report by October 30,” 2024,” said the Office Memorandum issued by the GST Council Secretariat on the Constitution of GoM on Life and Health insurance.

    Some opposition-ruled states, including West Bengal, had demanded complete exemption of GST on health and life insurance premiums, while some other states were in favour of lowering the tax to 5 per cent. Even Transport Minister Nitin Gadkari had in July written to Finance Miniter Nirmala Sitharaman on the issue saying “levying GST on life insurance premium amounts to levying tax on the uncertainties of life.” 

    In 2023-24, the centre and states collected Rs 8,262.94 crore through GST on health insurance premiums, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premiums. Sitharaman in her reply to a discussion on the Finance Bill in the Lok Sabha in August had said that 75 per cent of the GST collected goes to states and the Opposition members should ask their state finance ministers to bring the proposal to the GST Council.

  • GST Council assembly begins; key issues on schedule

    By way of PTI

    NEW DELHI: The GST Council assembly began right here on Saturday and is most probably to speak about putting in of appellate tribunals, and mechanism to curb tax evasion in pan masala and gutkha industry, amongst different issues.

    Union Finance Minister Nirmala Sitharaman is chairing the forty ninth assembly of the GST Council.

    “Together with the Union Finance Minister, Union Minister of State for Finance Shri @mppchaudhary, but even so Finance Ministers of States & UTs (with legislature) and Senior officials from Union Executive & States also are attending the assembly,” the finance ministry stated in a tweet.

    The pieces, which might now not be mentioned by means of the Council in its final assembly on December 17, 2022, would best the schedule of the Saturday assembly, resources stated.

    The document of the Team of Ministers (GoM), headed by means of Odisha finance minister Niranjan Pujari, on checking tax evasion by means of pan masala and gutkha trade may be more likely to be taken up for dialogue, they stated.

    A GoM on Items and Services and products Tax Appellate Tribunals (GSTATs) used to be arrange in July final yr below the chairmanship of Haryana deputy leader minister Dushyant Chautala.

    The GoM has urged that the tribunals will have to consist of 2 judicial contributors, and one technical member each and every from the Centre and states, but even so a retired Splendid Courtroom pass judgement on as president.

    NEW DELHI: The GST Council assembly began right here on Saturday and is most probably to speak about putting in of appellate tribunals, and mechanism to curb tax evasion in pan masala and gutkha industry, amongst different issues.

    Union Finance Minister Nirmala Sitharaman is chairing the forty ninth assembly of the GST Council.

    “Together with the Union Finance Minister, Union Minister of State for Finance Shri @mppchaudhary, but even so Finance Ministers of States & UTs (with legislature) and Senior officials from Union Executive & States also are attending the assembly,” the finance ministry stated in a tweet.

    The pieces, which might now not be mentioned by means of the Council in its final assembly on December 17, 2022, would best the schedule of the Saturday assembly, resources stated.

    The document of the Team of Ministers (GoM), headed by means of Odisha finance minister Niranjan Pujari, on checking tax evasion by means of pan masala and gutkha trade may be more likely to be taken up for dialogue, they stated.

    A GoM on Items and Services and products Tax Appellate Tribunals (GSTATs) used to be arrange in July final yr below the chairmanship of Haryana deputy leader minister Dushyant Chautala.

    The GoM has urged that the tribunals will have to consist of 2 judicial contributors, and one technical member each and every from the Centre and states, but even so a retired Splendid Courtroom pass judgement on as president.

  • GST Council concurs to decriminalise positive offences; no tax building up on any merchandise

    By way of PTI

    NEW DELHI:  The GST Council on Saturday agreed to decriminalise positive offences and doubled the brink for launching prosecution below the tax legislation to Rs 2 crore, however retained the prohibit at Rs 1 crore for pretend invoicing.

    The Council additionally clarified the definition of SUVs (sports activities software automobiles) for the levy of a 22 in keeping with cent repayment cess and determined to return out with parameters to outline MUVs (multi-utility automobiles).

    Briefing newshounds after the forty eighth GST Council assembly, Finance Minister Nirmala Sitharaman mentioned the Council may come to a decision on best 8 out of the 15 time table pieces because of paucity of time, however added that no new taxes were introduced in.

    The time table pieces which might no longer be thought to be incorporated taxation for pan masala and gutkha companies and a document by way of a Workforce of Ministers (GoM) on putting in place of appellate tribunals.

    The document of any other GoM, chaired by way of Meghalaya Leader Minister Conrad Sangma, on GST levy on on-line gaming, casinos and horse racing used to be additionally no longer a part of the time table for Saturday’s assembly.

    Together with the FM, Union Minister of State for Finance Shri @mppchaudhary, but even so Finance Ministers of States & UTs (with legislature) and Senior officials from Union Executive & States also are attending the assembly. (2/2)

    — Ministry of Finance (@FinMinIndia) December 17, 2022

    Sitharaman mentioned relating to SUVs, the rationalization that has been given is that the upper price of repayment cess of twenty-two in keeping with cent is appropriate to a motor car enjoyable all 4 prerequisites — it’s popularly referred to as SUV; has engine capability exceeding 1,500cc; duration exceeding 4,000 mm; has a floor clearance of 170 mm and above.

    “So this rationalization isn’t a brand new tax, it is extra to mention what defines that commodity which is below taxation as SUV,” the minister mentioned.

    Sitharaman mentioned the dialogue on MUVs started when some states requested whether or not sedans will have to be incorporated within the SUV class. The states additionally recommended bringing in a definition for MUVs.

    The minister mentioned the Council determined that if another motor car classes want to be added to the 22 in keeping with cent cess, the panel of central and state tax officials (or the Fitment Committee) will glance into it.

    The Centre and states would try to widen the GST base at each degree to extend the tax mop-up which is averaging about Rs 1.4 lakh crore each month. “So the point of interest will probably be on how a lot all folks are placing effort…to widen the tax base,” she mentioned.

    These days, 1.40 crore taxpayers are registered below GST.

    Income Secretary Sanjay Malhotra mentioned the Council took a “path-breaking determination” with reference to decriminalising 3 sorts of GST offences — obstruction or fighting any officer within the discharge of his tasks; planned tampering of subject matter proof; and failure to offer knowledge.

    ALSO READ | Decriminalise GST legislation, slash private source of revenue tax charges in Finances: CII to executive

    The minimal threshold of tax quantity for launching prosecution below GST has been raised from Rs 1 crore to Rs 2 crore, apart from for the offence of issuance of invoices with out the provision of products or products and services or each.

    Additionally, the compounding quantity has been diminished to the variability of 25 to 100 in keeping with cent, from the prevailing 50 to 150 in keeping with cent of the tax quantity.

    Central Board of Oblique Taxes and Customs (CBIC) Chairman Vivek Johri mentioned these days below the GST legislation offences exceeding Rs 1 crore are thought to be for prison prosecution.

    “What used to be proposed in Council and what got here out of the dialogue used to be that the prohibit could be enhanced from Rs 1 crore to Rs 2 crore now. So circumstances involving tax quantities of as much as Rs 2 crore will pass out of the purview of prison motion, apart from circumstances of pretend invoicing,” Johri mentioned.

    He mentioned the present threshold of Rs 1 crore for launching prison prosecution will proceed in pretend invoicing circumstances which proceed in spite of many measures taken by way of the tax government.

    The Centre had in September issued instructions to Central GST officials to release prosecution in offences exceeding Rs 5 crore. That route used to be given thru a round, however the GST legislation these days units the prohibit at Rs 1 crore.

    Malhotra mentioned the amendments in GST legislation to present impact to the Council’s determination on decriminalisation of GST offences could be introduced within the Finance Invoice, 2023.

    After that, the state legislatures too must cross the amendments and pave the way in which for making the adjustments efficient.

    The GST Council additionally determined to decrease tax charges at the husk of pulses to nil from 5 in keeping with cent.

    Tax on ethyl alcohol provided to refineries for mixing with motor spirit (petrol) used to be diminished to five in keeping with cent, from 18 in keeping with cent.

    Those adjustments in GST charges had been aimed on the “facilitation of business and measures for streamlining compliances in GST,” as in keeping with an reputable remark.

    The Council additionally clarified that Rab (one of those jaggery) and fryums manufactured the use of the method of extrusion draw in 18 in keeping with cent GST.

    NEW DELHI:  The GST Council on Saturday agreed to decriminalise positive offences and doubled the brink for launching prosecution below the tax legislation to Rs 2 crore, however retained the prohibit at Rs 1 crore for pretend invoicing.

    The Council additionally clarified the definition of SUVs (sports activities software automobiles) for the levy of a 22 in keeping with cent repayment cess and determined to return out with parameters to outline MUVs (multi-utility automobiles).

    Briefing newshounds after the forty eighth GST Council assembly, Finance Minister Nirmala Sitharaman mentioned the Council may come to a decision on best 8 out of the 15 time table pieces because of paucity of time, however added that no new taxes were introduced in.

    The time table pieces which might no longer be thought to be incorporated taxation for pan masala and gutkha companies and a document by way of a Workforce of Ministers (GoM) on putting in place of appellate tribunals.

    The document of any other GoM, chaired by way of Meghalaya Leader Minister Conrad Sangma, on GST levy on on-line gaming, casinos and horse racing used to be additionally no longer a part of the time table for Saturday’s assembly.

    Together with the FM, Union Minister of State for Finance Shri @mppchaudhary, but even so Finance Ministers of States & UTs (with legislature) and Senior officials from Union Executive & States also are attending the assembly. (2/2)
    — Ministry of Finance (@FinMinIndia) December 17, 2022

    Sitharaman mentioned relating to SUVs, the rationalization that has been given is that the upper price of repayment cess of twenty-two in keeping with cent is appropriate to a motor car enjoyable all 4 prerequisites — it’s popularly referred to as SUV; has engine capability exceeding 1,500cc; duration exceeding 4,000 mm; has a floor clearance of 170 mm and above.

    “So this rationalization isn’t a brand new tax, it is extra to mention what defines that commodity which is below taxation as SUV,” the minister mentioned.

    Sitharaman mentioned the dialogue on MUVs started when some states requested whether or not sedans will have to be incorporated within the SUV class. The states additionally recommended bringing in a definition for MUVs.

    The minister mentioned the Council determined that if another motor car classes want to be added to the 22 in keeping with cent cess, the panel of central and state tax officials (or the Fitment Committee) will glance into it.

    The Centre and states would try to widen the GST base at each degree to extend the tax mop-up which is averaging about Rs 1.4 lakh crore each month. “So the point of interest will probably be on how a lot all folks are placing effort…to widen the tax base,” she mentioned.

    These days, 1.40 crore taxpayers are registered below GST.

    Income Secretary Sanjay Malhotra mentioned the Council took a “path-breaking determination” with reference to decriminalising 3 sorts of GST offences — obstruction or fighting any officer within the discharge of his tasks; planned tampering of subject matter proof; and failure to offer knowledge.

    ALSO READ | Decriminalise GST legislation, slash private source of revenue tax charges in Finances: CII to executive

    The minimal threshold of tax quantity for launching prosecution below GST has been raised from Rs 1 crore to Rs 2 crore, apart from for the offence of issuance of invoices with out the provision of products or products and services or each.

    Additionally, the compounding quantity has been diminished to the variability of 25 to 100 in keeping with cent, from the prevailing 50 to 150 in keeping with cent of the tax quantity.

    Central Board of Oblique Taxes and Customs (CBIC) Chairman Vivek Johri mentioned these days below the GST legislation offences exceeding Rs 1 crore are thought to be for prison prosecution.

    “What used to be proposed in Council and what got here out of the dialogue used to be that the prohibit could be enhanced from Rs 1 crore to Rs 2 crore now. So circumstances involving tax quantities of as much as Rs 2 crore will pass out of the purview of prison motion, apart from circumstances of pretend invoicing,” Johri mentioned.

    He mentioned the present threshold of Rs 1 crore for launching prison prosecution will proceed in pretend invoicing circumstances which proceed in spite of many measures taken by way of the tax government.

    The Centre had in September issued instructions to Central GST officials to release prosecution in offences exceeding Rs 5 crore. That route used to be given thru a round, however the GST legislation these days units the prohibit at Rs 1 crore.

    Malhotra mentioned the amendments in GST legislation to present impact to the Council’s determination on decriminalisation of GST offences could be introduced within the Finance Invoice, 2023.

    After that, the state legislatures too must cross the amendments and pave the way in which for making the adjustments efficient.

    The GST Council additionally determined to decrease tax charges at the husk of pulses to nil from 5 in keeping with cent.

    Tax on ethyl alcohol provided to refineries for mixing with motor spirit (petrol) used to be diminished to five in keeping with cent, from 18 in keeping with cent.

    Those adjustments in GST charges had been aimed on the “facilitation of business and measures for streamlining compliances in GST,” as in keeping with an reputable remark.

    The Council additionally clarified that Rab (one of those jaggery) and fryums manufactured the use of the method of extrusion draw in 18 in keeping with cent GST.

  • Monetary power crucial for ‘Atma Nirbhar Bharat’: Nirmala Sitharaman

    Through PTI

    THIRUVANANTHAPURAM: Union Finance Minister Nirmala Sitharaman on Saturday stated indiscriminate borrowing and spending via positive States on non-merit items and expenditure is an issue of outrage, and financial power is a crucial part for ‘Atma Nirbhar Bharat’.

    The temptation to borrow past capability would create an inter-generational burden and impact the fiscal soundness of the rustic, she famous.

    “There are new resources of dangers each state is going through. The temptation to spend on non-merit items. The tendency to get into such not-so-viable, non-merit expenditure may be very prime in some States,” she stated.

    Sitharaman used to be handing over the second one P Parameshwarji Memorial Lecture on “Cooperative Federalism: The Trail Against Atma Nirbhar Bharat” organised right here via Bharatiya Vichara Kendram in reminiscence of Sangh idealogue P Parameshwaran.

    If contingent liabilities are expanded, the successive governments additionally must undergo its burden, the union minister warned. As consistent with the Charter, the Centre can visit and query States on borrowing however a lot of them see it as an interference of their area of authority, she stated.

    Sitharaman additionally recalled that there have been states that have been to begin with reluctant to simply accept the Centre’s cash in construction belongings announcing that they might be monitored if the union govt’s 50-year interest-free loans have been permitted for the aim.

    Noting that they do tracking in all places, she stated even supposing the state receives global financial institution help, it could even be monitored via the Centre.

    After they have been requested to take the budgetary allocation with 50 years interest-free loans for construction belongings, they stated they didn’t need as they might be monitored via the Centre.

    “It is a vicious narrative”, Sitharaman stated and requested “is the Centre Pakistan?” The Finance Minister additionally stated each state will get its percentage in due time below the rule of thumb of Top Minister Narendra Modi.

    “Right through the pandemic, instantly after that, and in 2021 and 2022, every time we’ve the relief of a few extra earnings coming in, I’ve paid further installments to the states a lot forward of time. In order that they do not run wanting cash. The knowledge can end up it,” she added.

    Bringing up the GST Council as a good instance of cooperative federalism, the minister stated it could display how excellent governance can paintings for the typical other folks of the rustic.

    The real benefit of one of these GST Council is the federal construction and the centre-state family members as each state has a voice there.

    The Finance Minister additionally justified the Centre gathering cess of establishing infrastructure, announcing the cash accumulated on this title isn’t used for itself, as a substitute it’s used for construction roads, highways, giant ports and so on within the states.

    “Whilst you gather cash within the title of infrastructure cess, roads are getting constructed in all places, ports are getting constructed in all places. No person state has denied highways, nobody state has denied main ports.” 

    Lamenting {that a} fallacious political narrative used to be being peddled to destroy the Centre-State family members, she stated federal relationships must be ruled via 3 Cs — cooperation, collectiveness, and coordination.

    The economic system, within the globalised global, should deal with the vulnerabilities it faces and the Centre and the States must paintings in combination in that regard, she stated.

    Regardless of hurdles and demanding situations, the rustic surged forward in spaces of building or even reached the 5th place within the international economic system index overtaking the UK, the Minister identified.

    Gazing that cooperative federalism brings a better sense of togetherness within the nation, she stated that throughout the pandemic states and Centre labored in combination to verify the wellbeing of other folks.

    Sitaraman stated the union govt looks after the pursuits of everybody below Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas.

    If all of the states, in excellent fiscal well being, can take India in combination, it isn’t tough for it to reach its function of changing into a advanced country via 2047, the a centesimal yr of independence, she added.

    Union Minister of State V Muraleedharan additionally attended the development.

    THIRUVANANTHAPURAM: Union Finance Minister Nirmala Sitharaman on Saturday stated indiscriminate borrowing and spending via positive States on non-merit items and expenditure is an issue of outrage, and financial power is a crucial part for ‘Atma Nirbhar Bharat’.

    The temptation to borrow past capability would create an inter-generational burden and impact the fiscal soundness of the rustic, she famous.

    “There are new resources of dangers each state is going through. The temptation to spend on non-merit items. The tendency to get into such not-so-viable, non-merit expenditure may be very prime in some States,” she stated.

    Sitharaman used to be handing over the second one P Parameshwarji Memorial Lecture on “Cooperative Federalism: The Trail Against Atma Nirbhar Bharat” organised right here via Bharatiya Vichara Kendram in reminiscence of Sangh idealogue P Parameshwaran.

    If contingent liabilities are expanded, the successive governments additionally must undergo its burden, the union minister warned. As consistent with the Charter, the Centre can visit and query States on borrowing however a lot of them see it as an interference of their area of authority, she stated.

    Sitharaman additionally recalled that there have been states that have been to begin with reluctant to simply accept the Centre’s cash in construction belongings announcing that they might be monitored if the union govt’s 50-year interest-free loans have been permitted for the aim.

    Noting that they do tracking in all places, she stated even supposing the state receives global financial institution help, it could even be monitored via the Centre.

    After they have been requested to take the budgetary allocation with 50 years interest-free loans for construction belongings, they stated they didn’t need as they might be monitored via the Centre.

    “It is a vicious narrative”, Sitharaman stated and requested “is the Centre Pakistan?” The Finance Minister additionally stated each state will get its percentage in due time below the rule of thumb of Top Minister Narendra Modi.

    “Right through the pandemic, instantly after that, and in 2021 and 2022, every time we’ve the relief of a few extra earnings coming in, I’ve paid further installments to the states a lot forward of time. In order that they do not run wanting cash. The knowledge can end up it,” she added.

    Bringing up the GST Council as a good instance of cooperative federalism, the minister stated it could display how excellent governance can paintings for the typical other folks of the rustic.

    The real benefit of one of these GST Council is the federal construction and the centre-state family members as each state has a voice there.

    The Finance Minister additionally justified the Centre gathering cess of establishing infrastructure, announcing the cash accumulated on this title isn’t used for itself, as a substitute it’s used for construction roads, highways, giant ports and so on within the states.

    “Whilst you gather cash within the title of infrastructure cess, roads are getting constructed in all places, ports are getting constructed in all places. No person state has denied highways, nobody state has denied main ports.” 

    Lamenting {that a} fallacious political narrative used to be being peddled to destroy the Centre-State family members, she stated federal relationships must be ruled via 3 Cs — cooperation, collectiveness, and coordination.

    The economic system, within the globalised global, should deal with the vulnerabilities it faces and the Centre and the States must paintings in combination in that regard, she stated.

    Regardless of hurdles and demanding situations, the rustic surged forward in spaces of building or even reached the 5th place within the international economic system index overtaking the UK, the Minister identified.

    Gazing that cooperative federalism brings a better sense of togetherness within the nation, she stated that throughout the pandemic states and Centre labored in combination to verify the wellbeing of other folks.

    Sitaraman stated the union govt looks after the pursuits of everybody below Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas.

    If all of the states, in excellent fiscal well being, can take India in combination, it isn’t tough for it to reach its function of changing into a advanced country via 2047, the a centesimal yr of independence, she added.

    Union Minister of State V Muraleedharan additionally attended the development.