GST Council To Discuss Rate Rationalisation; Cess Extension Likely, Says Finance Minister Nirmala Sitharaman
The meeting is expected to address industry concerns, including clarity on tax rules for corporate guarantees and employee stock options, as well as a review of the GST rate on online gaming.
Finance Minister Nirmala Sitharaman said on Tuesday that the Goods and Services Tax Council—which is set to meet on Sept. 9 in New Delhi for its 54th meeting—will discuss key issues including rate rationalisation and the possible extension of the GST compensation cess.
Sitharaman confirmed that the government aims to simplify GST rates without increasing taxes on any products. Speaking to the reporters during a media conference, she praised state finance ministers for their collaborative efforts to enhance revenue, putting aside political differences.
If requested by states, the GST Council may also discuss extending the GST compensation cess which is currently in place until June 2025, Sitharaman said. The cess is a levy on certain goods to compensate states for revenue losses due to GST implementation.
The meeting is expected to address industry concerns, including clarity on tax rules for corporate guarantees and employee stock options, as well as a review of the GST rate on online gaming. The council will also build on the previous meeting's decisions, which included simplifying compliance procedures, reducing litigation, and exempting certain railway services from GST.
