The GST Council is likely to regularise taxation issues arising on a host of goods and services. This includes the supply of cereals, pulses, and flour containing quantities of more than 25 kg/25 litres and whether they would fall in the category of pre-packaged and labelled commodities and attract 5 per cent GST. The Council might exclude agricultural farm produce in packages of more than the said quantity from the scope of labelled.
GST levy on tobacco products across categories would be referred to the state panel looking into the issue of rate rationalisation. At present, tobacco is categorised as a sin good and attracts the highest GST of 28 per cent with an additional cess. The industry has sought clarity and asked to keep the maximum rate of 40 per cent (20 per cent each for state and centre).
Other than these, the Council might reject bringing MSME ice cream manufacturers under the composition scheme.
It may also turn down the proposal of exempting pharma products and equipment from IGST. Besides, orthopaedic implants will continue to attract a lower tax rate as the Council may not approve increasing the proposed rate to 18 per cent.
The Council is also likely to clarify the taxability of corporate guarantees, Esops, and TCS rates collected by e-commerce operators. The Council is also expected to rationalise the pre-deposit amount for GST appeals and reduce it to 10 per cent or a maximum of Rs 20 crore CGST & SGST and Rs 40 crore for IGST.
This apart, the Council may come out with biometric-based Aadhar authentication for new GST registration on a pan-India basis, in order to eliminate non-genuine GST registrations.
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