The Centre sees limited scope for further discussions on Goods and Services Tax (GST) rates, with most proposals currently seeking tax concessions rather than rate changes, a government source said.
“There is not much left to discuss on rates,” the source said, adding that even interpretative issues are likely to be limited.
Last Thursday, the GST Council agreed to rate changes once a year, effective from the beginning of the financial year on April 1.
The Centre also believes states’ “right to tax” must be acknowledged, with petroleum products remaining one of the few major tax levers available to them.
GST on fuel products may be considered only if the tax becomes more robust and the impact of geopolitical events on the economy eases, the source indicated.
Instead, the Centre and states are focusing on increasing the number of GST registrations and expanding the GST base beyond the 1.6 crore filers.
New GST officers’ panel to subsume fitment and law committees
Five states — Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka and Gujarat — are likely to have fixed representation on the restructured officers’ panel, the source added. Four more states, in addition to Odisha, West Bengal and Rajasthan, are expected to be represented on a rotational basis, with a two-year tenure.
Representation on the officers’ panel is likely to be determined by states’ GST footprint, including their contribution to revenues and the number of taxpayers. The panel will function as a single expert body advising the GST Council, with the existing fitment and law committees being subsumed into it.
