GST Council Meeting-Highlights
47th GST Council Meeting was held in Chandigarh. In a two-day meeting GST Council recommended rate changes on certain items. These changes will be made effective from July 18, 2022.
Recent Rate Changes
- GST on ink, lights, LED lamps and metal printed circuit board has been hiked to 18% from earlier 12%.
- GST rate on solar water heaters and systems has been hiked to 12% from 5%.
- Rate on job work associated with manufacturing of leather goods and footwear has been increased to 12%.
- Rate on works contract for roads, railways, metro, bridges, crematorium effluent treatment plant is increased to 18%.
- GST Council has decided to rationalise tax rates on certain goods and services to remove an inverted duty structure.
- Rate on petroleum and coal bed methane is raised to 12% from 5%.
- GST Council proposed to levy 28% GST on casinos, horse racing, online gaming, and lottery was deferred. This issue will be taken in next meeting.
GST Council
- It is a constitutional body under Article 279A of the Indian constitution.
- It was introduced by the Constitution (One Hundred and First Amendment) Act, 2016.
- The GST Council is chaired by the Union Finance Minister.
- Other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
- It makes recommendations to the Union and State Government on issues related to Goods and Service Tax.
- Every decision of GST Council is to be taken by a majority of not less than three-fourths of the weighted votes of the members present.
- Central government’s vote has a weightage of one-third of total votes cast, while the votes of state governments all together have a weightage of two-thirds of total votes cast in the meeting.
Month: Current Affairs - July, 2022
Category: Economy & Banking Current Affairs