Categories: Business

GST Council to meet next month, Finance Ministry is not in favor of raising taxes on non-essential items


GST Council to meet next month; FinMin not for raising rates on non-essential items

New Delhi The meeting of the Goods and Services Tax (GST) Council is going to take place next month. The finance ministry is not in favor of raising the GST tax rate on non-essential commodities, even though tax collections have declined due to the lockdown amid the Kovid-19 pandemic. Sources said that if the GST rate is increased on non-essential items, it will reduce their demand. Ultimately, this will reduce the speed of the economy to return to track.

He said that the economy would have to do better on every front after the lockdown. For this, there is a need to increase demand apart from essential commodities. Sources said that the GST Council will take a final decision on increasing the rate of GST. The GST Council consists of the Finance Ministers of all states and union territories. The country's finance minister is its chairman.

It is the apex entity for taking any decision related to GST. The 39th meeting of the GST Council was held in March. The GST tax rate was then reduced on many items. The lockdown continues in the country from 25 March. This has led to a decrease in the GST collection of the government. The government has not yet released the GST collection data for April.

Sources also said that the government has not yet taken any decision regarding monetization of deficit (to complete by printing a note) to meet the fiscal deficit. Sources said that what the Kovid-19 epidemic is going to take, what effect it will have on the economy next, no one knows yet. Even globally, no country can say what will be the situation after three months.

This post was published on May 30, 2020 2:47 am

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