GST Council can make two important decisions to bail out the sugar industry. Council Athlon can reduce the GST slab rate from 18 to 12 percent.
New Delhi . The GST Council meeting Today through video conferencing under the chairmanship of Arun Jaitley (F.M.), In the meeting possibility to make decision on cut the current rate of GST on ethanol.
The reason for this is that at present, the GST rate is 12 percent on bio-fuel. Therefore, tax rates on Athanol can also be kept equal.
1. The decision to make sugar cess
Along with this, the decision to make sugar cess can also be done. However some states have an objection to cess. The council may also consider giving some incentives to promote digital payments.
2. Decision to GST return simplification
Council can also make decision to GST return simplification and to make a concession from GST to the purchase of international airport’s Duty Free Shops.
Sources said that the council can also decide to add sugar to five percent sugar. However, many states are opposing it. His argument is that instead of putting sugar in the government, the rate of GST should be increased only on sugar. It is believed that the ordinance will be required for the sugar cess to be applied on sugar as it will require a change in GST law.
In fact, before the GST was implemented, Sugar would have been cheaper at the rate of Rs 124 per quintal with excise duty but it ended after the GST was implemented from July 2017.
India last had a Sugar cess under The Sugar Cess Act 1982, the Sugar Development Fund Act 1982, but was abolished in 2017.
3. Discount on Digital Payments
This proposal is in front of Council from November. Under this, a credit card payment can be up to 2% in GST.
4. Reverse Charge Mechanization
It may be considered to bring an anti-evacuation tool to monitor the sale of traders with turnover of less than Rs.20 lakh free from the obligation of GST registration.