41st GST Council Meeting - Key Highlights

41st GST Council Meeting 

The GST council is the chief decision-making body that takes all important decisions about the GST regime. 

Expectations from the 41st GST Council Meet

This meeting is going to focus on providing compensations to states, for the revenue losses incurred under the Indirect Tax regime.

• The Goods and Service Tax act levied the ‘Compensation Tax’ to compensate for the losses incurred by various states because of the implementation of GST. This cess was prescribed to be collected on the supply of selected goods and/or services till 1st July 2022.

However, due to the prevailing situation in the country and economic downfall, the collection of this cess has decreased. Understanding this, the council members may work out a reasonable plan to balance the liabilities between the centre and state. 

• The council may consider options like - market borrowing, and/or addition of more items under the purview of compensation cess, and/or re-working on few tax rates.
• This meeting may also chalk out the centre’s and state’s share in the loss sharing.
• As quoted in the 40th GST council meet, this meet may clarify the payment parameters, if there is borrowing.

Stay tuned for more updates on the 41st GST council meeting.