homeeconomy NewsGST Council meet to deliberate on rates, items under exemption and inverted duties: Revenue Secretary Tarun Bajaj
GST Council meet to deliberate on rates, items under exemption and inverted duties: Revenue Secretary Tarun Bajaj
Bajaj indicated although overall GST rates would be kept low, some rebalancing in the GST structure could be on the cards.
Revenue Secretary Tarun Bajaj on Wednesday said that the next GST Council meeting is likely to discuss tax rates, inverted duties and propose changes in the exemption basket.
Bajaj indicated although overall GST rates would be kept low, some rebalancing in the GST structure could be on the cards
“Rates have actually come down at a macro level, in a few sectors they may have gone up but we have to look at solutions to bring down rates which are very high and take out certain items which are exempted, inverted duty structures so we need to do that I am sure and in the coming GST Council meeting when we give this agenda I am sure we will be able to get those things."
The secretary also admitted GST rates on four-wheelers are high especially due to the compensation cess and he doesn’t see a way out, at least on the cess which according to him will continue for a few more years.
“ …for 4 wheelers we not only charge 28 percent but we also charge cess which is much more and as I see it, it will continue for a few more years , so all that has a negative impact on the industry, I acknowledge that, but I don’t know how to solve that”
The revenue secretary said that tax receipts are “very robust” and he has instructed revenue officials to stay away from intrusive practices for collecting more.
“The message I have given to my officers here is don’t look at every penny it’s ok to lose a pound if the economy gives me 10 pounds, that is the attitude that the revenue dept would be working and should be working with.”
On the corporate sector, Bajaj said the government doesn't want to increase tax rates for the corporate sector.
“The whole idea is to give the corporate sector time to plan itself, give it a stable tax regime so that so that you are able to decide on other things, whether you want to invest where you want to invest and how you want to invest."
The revenue secretary also added that the CBDT has been asked to clear refund backlog in the same financial year and won't call the industry to pay extra taxes in the month of March.
Bajaj also added that the cess on the auto sector will continue for a few more years.
(Edited by : Ajay Vaishnav)
First Published: Aug 11, 2021 12:52 PM IST
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