New Delhi, May 4 : Following no consensus on imposition of cess on sugar and incentives to digital transactions in the 27th GST Council meet on Friday, the Council on Friday decided to form separate committees to make recommendations on the said issues.
Briefing the outcome of the GST Council meeting, Union Finance Minister Arun Jaitley said the Committee on Digital Transaction and Sugar Cess will be formed within 2 days.
He said the Sugar Cess Committee will give its report in two weeks keeping the urgency of the matter whereas the Committee on Digital transaction will give its report before the next GST Council Meeting.
He said keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2 per cent in GST rate where the GST rate is 3 per cent or more, 1 per cent each from applicable CGST and SGST rates on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs 100 per transaction, so as to incentivise promotion of digital payment.
He said the council has recommended for setting up of a Group of Ministers from state governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.
On the issue of imposition of sugar cess over and above 5 per cent GST and reduction in GST rate on ethanol, he said that keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail.
On this too, the Council has recommended for setting up of a Group of 5 Ministers from state governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.
On sugar cess, Bengal Finance Minister Amit Mitra said during the meeting several states opposed the cess as it is against the spirit of the GST act and it only helps 5 states. He said, “If it is approved, then different states will start asking for cess as per their requirements.” UNI
GST Councils to set up committees to look into digital transactions incentives, Sugar Cess
Kashmir Age
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