GST Council sets up GoM on capacity based taxation, special composition schemes

Sarkaritel
By Sarkaritel May 26, 2021 19:13

GST Council sets up GoM on capacity based taxation, special composition schemes


New Delhi, May 26  The Goods and Service Tax Council has constituted a group of ministers (GoM) to examine the possibility of levy of GST based on capacity of manufacturing units and special composition schemes in certain evasion prone sectors with reference to current legal provisions.

The Council has set five-point terms of reference for the GoM which will include examining the legal validity of such changes (manufacturing capacity based taxation and new composition scheme) and the impact of such levy on destination nature of current GST design.

“To examine the possibility of levy of GST based on capacity of manufacturing units and special composition schemes in certain evasion prone sectors like pan masala and gutka, brick kilns, sand mining etc with reference to the current legal provisions,” the terms of reference of the GoM states. The GoM will also examine any other administrative or systemic mechanism to plug leaked in these sectors.

Also, the GoM will examine the impact of GST on reverse charge on me tha oil and to examine if these could be other class of supplies that could be subjected to reverse charge to augment revenue.

The seven member GoM will be headed by Odisha finance minister Niranjan Pujari and will have to give its recommendations within six months to the GST Council.

Other members of the GoM include deputy chief minister of Delhi Manish Sisodia, Haryana deputy CM Dushyant Chautala, Kerala Finance minister K.N. Balagopal, Madhya Pradesh Finance minister Jagdish Devda, UP FM Suresh Kumar Khanna and Uttarakhand agriculture minister Subodh Uniyal.

The GoM will be assisted by committee of officers from Centre and States and secretarial assistance will be provided by joint secretary (TRUI) of Central Board of Indirect Taxes and Customs (CBIC).

Sarkaritel
By Sarkaritel May 26, 2021 19:13