GST Council Meeting-Highlights

July 1, 2022

47^th 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.

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