The last full budget before the Lok Sabha polls delivered hope for the middle class with a new tax regime by doing away with taxation for those earning less than Rs 7 lakh a year. It has also paved the way for making LED TVs, smartphones and electronics cheaper for common Indians. Weeks after the Union Budget 2023, the GST council met to discuss new tax rates and norms, as all eyes were on rates for online gaming and pan masala, while the much anticipated GST on cement and MUVs wasn't on the agenda.
The Group of Ministers' (GoM) recommendations for the establishment of a GST appellate tribunal have been accepted. As many as 15 states had reportedly opposed the recommendations made by the Group of Ministers (GoM) for the tribunal. State governments also raised concerns about incorrect calculation of GST compensation for the year FY22.
The Finance Minister Nirmala Sitharaman said that two GoM reports have been accepted during the meeting. She announced that the entire pending balance for GST compensations will be cleared today, including Rs 16,982 crore for June. This will help the central government clear all GST compensation dues to states for five years.
This includes Rs 1,934 crore for poll bound Karnataka, while Maharashtra will get Rs 2,102 crore and Delhi will get Rs 1,212, among other states.
As for GST rates, the tax has been dropped for lose liquid jaggery, but 5 per cent GST will be charged on packaged and labelled liquid jaggery.
GST on pencil sharpners has been reduced from 18 per cent to 12 per cent.
No GST will be applicable on coal rejects, and services of the national testing agency, including entrance examinations, have also been exempted.
As for services by courts and tribunals, they will be taxed under under reverse charge system. The GoM recommendations on GST for Pan Masala and Gutkha have also been accepted.
The late fee for delayed filing of annual GST returns has also been rationalised, and the same for for smaller tax payers with a turnover of Rs 2 crore a year has been reduced.
Turnover of more than Rs five crore and up to Rs 20 crore, will be charged 50 Rs per day as late fees.
