Panel pitches nixing of GST exemptions on host of items

A review of hotel tariffs is also expected to be a part of the recommendations, with lower-tariff hotels also likely to be brought under the GST ambit.The panel is also likely to have suggested a review of the unbranded food items, which at present do not attract GST.

A review of a series of exemptions and inverted duty structure as recommended by the Group of Ministers (GoM) on rate rationalisation are likely to be taken up for discussion in the upcoming Goods and Services Tax (GST) Council meeting. The interim report by the ministerial panel has suggested removal of exemptions including hospital rooms with rent above Rs 5,000 a day, services provided by regulators, such as SEBI, RBI, IRDA, and business class travels from airports in north-east, sources said.

A review of hotel tariffs is also expected to be a part of the recommendations, with lower-tariff hotels also likely to be brought under the GST ambit. The panel is also likely to have suggested a review of the unbranded food items, which at present do not attract GST.

The next GST Council meeting is slated to be held at Chandigarh on June 28-29. In its meeting held last week, the GoM, headed by Karnataka Chief Minister Basavaraj S Bommai, had converged upon the preparation of an interim report and seeking an extension of its tenure.

The GoM, in its interim report to the GST Council, is also learnt to have suggested an increase in the GST rate on electronics-waste to be raised to 18 per cent from 5 per cent along with an increase in the rate on exploration activities of goods related to petroleum and coal bed methane from 5 per cent. A recommendation has been made to remove exemption on rent of hospital rooms with rent over Rs 5,000 as against complete exemption at present.

Business class travel from airports in the north-eastern states could also end soon if the recommendation of the GoM gets accepted in the Council. This compares with a levy of 12 per cent GST on business travel by air in the rest of the country. The panel has also looked at the possibility of withdrawing exemption on services provided by Food Safety and Standards Authority of India (FSSAI) to food business operators as against 18 per cent levy on services at present.

Source From:- https://indianexpress.com/article/business/economy/panel-pitches-nixing-of-gst-exemptions-on-host-of-items-7983191/