Begin typing your search...
Tamil Nadu seeks removal of GST on insurance premium at council meet
Deputy CM OPS says it is Centre’s responsibility to provide tax compensation due in States
By
migrator
migrator
New Delhi
On a day when Deputy Chief Minister O Pannerselvam said the Centre should abide by its constitutional responsibility to provide GST compensation dues to State governments in full for five years at the pre-budget Finance Ministers’ meeting, Fisheries Minister D Jayakumar sought complete exemption of premium on life insurance from the 18 per cent Goods and Services Tax (GST) at the GST Council meeting convened by Finance Minister Nirmala Sitharaman here.
Jayakumar said premium on life insurance would affect the common public and social security and in this regard, complete exemption should be given. The Fisheries Minister, who has been attending the GST Council meetings since his days as Finance Minister, also demanded that the Centre compensate the loss suffered by the state on account of Interstate GST (IGST) since its implementation in 2017-18 and the GST compensation for the current fiscal. He also said the facilities should be made for the functioning of assistance centres, set up for the sake of traders, in Tamil and regional languages.
An official release issued by the TN government said the Council discussed recommendations of the ministers’ on the issue of encouraging the real estate sector which plays a big role in the economy, especially in expansion of employment. The Council also considered recommendations from Tamil Nadu and other states for either removal or reduction of GST on a number of items including handloom products, branded rice, pickles, butter, ghee, agricultural equipment, machines used in textile industry, pumpsets, biscuits, pesticides, camphor, dry chillies, fenugreek, rusk and handmade locks.
On the GST compensation, Pannerselvam said Arun Jaitley had given assurances in this regard during GST council meetings. “The Centre’s taxation measures have impacted states” he said, adding, “Tamil Nadu was one of the best performing states in GST collection”. He also claimed that the Centre is yet to provide Tamil Nadu the IGST arrears of 2017-18 of Rs 4,073 crore. Likewise, the State is yet to receive arrears of Rs 3,369.06 crore towards grants to local bodies as recommended by the 14th Finance Commission. “This includes performance grants for 2017-18 and 2018-19 amounting to Rs 1,196.27 crore and Rs 2,172.79 crore towards basic grants for 2019-20”, he said.
GST Council mulling single tax rate of 28 pc on state-run lottery from March
The GST Council meeting on Wednesday decided to levy a single rate of 28 per cent on state-run and state-authorised lottery from March 2020 and to raise GST to a uniform rate of 18 per cent on wove and non-woven bags and sacks of polyethylene or polypropylene strips.
The decision was taken at a meeting of the GST Council convened by Finance Minister Nirmala Sitharaman and attended by state finance ministers. In a break with tradition, the decision was taken by voting and not consensus. It also decided to exempt upfront amount payable for long term lease of industrial and financial infrastructure plots by an entity having 20 per cent or more ownership of Central or State government. At the present the exemption is available to an entity having 50 per cent or more ownership of Central or State government. The change shall become effective from January 1, 2020.
An official release said the Council also considered the rate of GST on Woven and non-Woven bags and sacks of polyethylene strips or the like, whether or not laminated of a kind used for packing of goods (HS code 3923/6305) in view of the requests received post the changes recommended on such goods in the first meeting and recommended to raise the GST to a uniform rate of 18 per cent on all such bags including flexible intermediate bulk containers. On law and procedure-related changes, the Council recommended that Grievance Redressal Committees (GRC) will be constituted at Zonal and State level with both GST and SGST officers and including representatives of trade and industry and other GST stakeholders.
The committees will address grievances of specific and general nature of taxpayers at the zonal and state level. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM-9C for FY 2017-18 to be extended to Jan 31, 2020.
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android
Next Story
