The 48th GST Council meeting, which is scheduled to take place on December 17, is unlikely to take any major rate cut decisions. Stating this, government sources have told Business Today Television that the GST fitment panel has recommended only two major rate modifications. The suggestions are slated to be taken up at the GST Council meeting later this month.
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Finance Ministry sources said the fitment committee has recommended not to reduce the tax on gold and silver from 3 per cent to a lower rate, and the rate of tax on diamonds from 1.5 per cent to a lower rate. The committee has also refused to reduce the rate of tax on water pump sets, pencil sharpeners, and kitchenware from 18 to 12 per cent.
“As per the fitment committee, there is only one major rate recommendation that will be taken up by the GST Council. The rate of tax on the by-products of milling dals and some pulses like khanda, chura, and chika is likely to be cut to zero. Currently, these by-products are taxed at 5 per cent under 103A of Schedule 1,”, the sources said.
The Fitment Committee has also not recommended cutting the tax rate on newsprint from five per cent to zero, and from 12 per cent to zero for printing paper for books. However, the fitment committee has recommended that sports utility vehicles (SUVs) be subject to a 22 percent compensation fee if certain vehicle performance conditions are met.
The fitment committee has suggested deferring a decision on certain matters, like the levy of GST on virtual digital assets. As per sources, the finance ministers of Haryana and Karnataka will submit a report early next year on the crypto ecosystem and the tax treatment of cryptocurrencies. Accordingly, the 48th GST Council meeting is unlikely to take up this matter.
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The 48th GST Council is also expected to discuss the report of the committee on the levy of penal interest on delayed remittances of GST by banks, along with a report by a group of ministers on the formation of the GST Tribunal.
