The GST Council’s 45th meeting will take place on September 17 in Lucknow. There are a range of issues that can be taken up in the upcoming GST council meeting. This time, the meeting is not happening in virtual mode. The one issue that is going to be pushed by the states is the extension of GST compensation cess beyond 2022, as all the states are overstretched due to the COVID-19 pandemic.
“The 45th GST Council meeting will have a major impact on the electric vehicle to boost up the sales, other then that GST rates, speedy refunds of exporters of goods and services is to be discussed to expedite the exports. The COVID-19 put up a dent in GST collections and hence plans to meet the target to meet GST compensation will be discussed,” Ashutosh Aggarwal, Taxlegit said.
Apart from extension of GST compensation cess and compliance issues, Sikkim’s proposal of 1 per cent cess on intra-state supplies of pharmaceuticals for two years and a special aid of Rs 300 crore per annum till 2023 for Sikkim by the Centre to mitigate the damage unleashed by the COVID-19 pandemic in the north eastern state can be taken up by the GST council meeting.
“The GST rate at which Centre will compensate the states need to discuss in this meeting. The States will be anxious to get clarity if their demand for extending the compensation timeline is being considered. The next issue for the states is the gap and delay in giving the GST compensation as these amounts are substantial for some states," Arijit Malakar, head, research (Retail), Ashika Stock Broking said.
Malakar also added that the issue of bringing in some petroleum products into the GST chain is likely to be brought to the table. A review of the reduction in rates given on various products in the light of COVID on the recommendations of the 43rd and 44th GST Council meetings needs to be taken. There could be roll back on some GST withdrawn if the situation improved. In addition to that, the GST council meeting will help in facilitating the procedure for the Aadhaar authentication of existing GST users. So, these are the above issues which are likely to be discussed in the upcoming GST meet.
According to Amit Gupta, managing director, SAG Infotech expects something on the concessional prices on the Covid-19 drugs which consist of Amphotericin B, Tocilizumab, and Remadsivir till 31st December can be taken up. “The decline in the GST prices from 12 per cent to 5 per cent on the seven drugs like Itolizumab, 2-Deoxy-D-Glucose, and Favipiravir, diminishing the GST prices upon the biodiesel provided to the oil marketing firms for mixing with diesel from 12 per cent to 5 per cent,” Gupta added.
As September 17 is around the corner, all eyes are on some of the key decisions that the council will take and will discuss.