16.08.2022: More GST rate changes likely to address inverted duty, exemptions.

The Goods and Services Tax (GST) Council may go in for another round of rate changes to correct the remaining instances of inverted duty, apart from withdrawing some more exemptions. A group of ministers (GoM) headed by Karnataka chief minister Basavaraj Bommai is working on the second round, people aware of the matter told ET.

“The inverted duty correction exercise has not concluded yet and there is more work left,” said a senior official, adding that the GoM is working on the next list and a proposal may be floated before the next council meeting, which is likely in September. “The last two-three meetings were productive, with many important decisions being taken. But some items are still pending, including textiles,” the person said.

Inverted duty refers to structures where the rate of tax on inputs is more than the rate of tax on outward supplies, which discourages value addition. If required, tax authorities will engage with industry for feedback, the official said.

Source: The Economic Times 

Register Today