GST Council Meeting 2023: Entire GST compensation cess will be cleared

Goods and Services Tax (GST) 49th meeting of the Council was held in New Delhi on Saturday and many important issues were discussed in this GST Council meeting.

Finance Minister Nirmala Sitharaman addressed the press conference after the GST Council meeting. Full GST compensation or GST compensation amount payable to the states for 5 years is to be released Rs 16982 crores will be given under this. Finance Minister said on this occasion that a decision was taken in the GST Council meeting. Information was also provided regarding GST compensation of several states including Delhi, Tamil Nadu, Uttar Pradesh, Karnataka.

The Finance Minister informed that the GST on pencil sharpener is being reduced from 18 percent to 12 percent. This will make it cheaper for common people to buy pencil sharpeners.

Besides, the GST rate on liquid jaggery is also being reduced to zero. Earlier it was 18 percent. If it is sold free, zero percent GST will be applicable on it, which was earlier charged at 18 percent GST. If it is sold in packaged or labeled form, GST will be levied at 5 percent. 

Thus GST on retail sale of liquid jaggery has been abolished. Along with this, the Finance Minister announced a reduction in GST on tags, tracking devices and data loggers attached to durable containers. It has been reduced from 18 percent to zero. But it remains to fulfill some conditions.

Key points of GST Council meet:

• It has been decided to levy late fee on annual returns. It has been decided to introduce capacity based taxation and its strict adherence.
• GOM recommendations on Pan Masala and Gutkha have been approved.
• The Group of Ministers (GoM) report on the GST Appellate Tribunal has been approved.
• The demand to change the language of the draft at the request of the States has also been accepted.
• Changes in the tax system have been made in the GST Council meeting. The finance minister said that the tax system has been changed to prevent tax evasion. Earlier, ad valorem tax was levied on production.
• The decision to tax AUVs (MUB) on the lines of SUVs has been postponed.

The reports of the Group of Ministers have been accepted. These things are considered along with the fact that it can be further modified. The finance minister said that the possibility of making minor changes in the language of the relevant bills has also been considered.