45th GST Council Meeting:
The 45th GST Council meeting will be held in Lucknow, Uttar Pradesh on Friday i.e. 17th September, today. In this meeting chaired by Finance Minister Nirmala Sitharaman, the tax rate on more than four dozen items including petrol and diesel can be reviewed. The meeting may also decide to extend the tax exemption on 11 Covid medicines till 31st December.
The issue of bringing petrol and diesel under GST is the biggest issue in the council meeting. The council will also consider a proposal to treat food delivery agents Zomato and Swiggy as restaurants and levy 5% GST on their deliveries.
According to the tweet of the Finance Ministry, Nirmala Sitharaman will chair the 45th GST Council meeting at 11 AM in Lucknow. The meeting will be attended by the Finance Ministers of the States and Union Territories and senior officials of the Central Government and the States, besides Minister of State for Finance Shri Pankaj Choudhary.
Sources said that in this meeting, the deadline for duty relief on essential materials related to Covid 19 can also be extended. Currently, vehicle fuel prices are at a record high in the country. At present, VAT is not levied by the states on the cost of production of petrol, diesel, but before that excise duty is levied by the Center on their production, after that the states collect VAT on it.
The Kerala High Court, during the hearing of a petition in June, had asked the GST Council to take a decision on bringing petrol and diesel under GST. Sources said the court has asked the council to do so. Considering this, the decision can be considered in the meeting of the Council
The GST system was implemented in the country from 1st July 2017. Central taxes such as excise duty and state duties such as VAT were subsumed in GST. But petrol, diesel, ATF, natural gas, and crude oil were kept out of the purview of GST. The reason for this is that both the central and state governments get huge revenue from taxes on these products.