GST on jaggery cut; fee on late filing of returns rationalised

NEW DELHI: GST Council, the apex decision-making authority, on Saturday reduced the tax rate on several items, including ‘rab’ (liquid jagger) and pencil sharpeners, besides rationalising late fee for the delayed filing of annual returns.

Briefing media after the 49th meeting of the GST Council, Union Finance Minister Nirmala Sitharaman said reports of the GoM (Group of Ministers) on checking tax evasion by pan masala and gutkha industry, and on Goods and Services Tax Appellate Tribunals (GSTATs), have been taken on board.

Headed by Union Finance Minister, the Goods and Services Tax (GST) Council comprises finance ministers of states and UTs (with legislature).

Sitharaman also announced that the central government has decided to clear the entire pending balance GST compensation of Rs 16,982 crore for June 2022. The Centre has decided to release the amount from its own resources and the same will be recouped from the future compensation cess collection, she said.

With this release, the Centre would clear the entire provisionally admissible compensation dues for five years as envisaged in the GST (Compensation to States) Act 2017, an official release said.

The Centre will also clear the admissible final GST Compensation to those states who have provided revenue figures certified by the Accountant General which amounts to Rs 16,524 crore, Sitharaman said.