SHIMLA/NEW DELHI: The GST council has yet to take a call on the cut on GST on apple carton to 5 per cent from 18 percent as raised by industries Minister Harshwardhan Chauhan Himachal Pradesh will get Rs 229 Crore GST compensation pending for June 2022 and the state like others would be able to constitute the GST Appellate Tribunal.
Chauhan who participated in the 49th GST Council meeting in New Delhi raised the issue of increase in inputs used by Apple growers of the State.
He demanded that the GST rate on apple carton boxes be reduced to 5% from the present 18%.
He stated that the burden of GST on apple carton boxes is borne by the apple growers and reduction of GST on these will reduce their input cost considerably.
But the GST council did not take a call on this so far.
Chauhan also raised the issue of loss of GST on vehicle purchases when residents of the state purchase them in the adjoining states.
He stated that the GST on these purchases must come to the state as these vehicles are registered by the residents of the state back home.
He told the Council that the tax pertaining to such purchases must flow to the consuming state as per the core principle of GST.
On the other hand, Uttarakhand will get Rs 345 Crore, Jammu and Kashmir Rs 210 Crore on account of the announcement of release of the balance GST compensation for June.
Among other recommendations of GST council, the Centre decided to the clear the entire pending balance GST compensation of Rs. 16,982 crore for June’2022 to 23 states including HimachalPrades, Uttarakhandand JammuandKashmir.
The GST council got approval of the Report of Group of Ministers (GoM) on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST, recommendations relating to GST rates on Goods and Services and other measures for facilitation of trade.
Since there is no amount in the GST compensation Fund, Centre decided to release this amount from its own resources, Union Finance Minister told Media after the GST council meeting.
“The same will be recouped from the future compensation cess collection”.
With this release, Centre would clear the entire provisionally admissible compensation due for five years as envisaged in the GST (Compensation to States) Act’2017.
In addition, Centre would also clear the admissible final GST compensation to those States who has provided the revenue figures as certified by the Accountant General of the States amounting to Rs. 16,524 crore,, Sitharaman said.
The Council adopted the report of Group of Ministers with certain modifications. The final draft amendments to the GST laws shall be circulated to Members for their comments. The Chairperson has been authorised to finalise the same.
With a view to plug the leakages and improve the revenue collection from the commodities like pan masala, gutkha, chewing tobacco, the Council approved the recommendations of the GoM.
The states ruec in the meeting that the non- establishment of GST Tribunals has been causing difficulty for tax payers.
They have to directly approach the High Court against the decision of appellate authority in the absence of a GST tribunal.
