GST exempt list to be reviewed by ministerial panel

The GST Council headed by Union Finance Minister Nirmala Sitharaman had taken by the decision to set up these two GoMs on September 17.

  • Money9
  • Updated On - September 27, 2021 / 05:57 PM IST
GST exempt list to be reviewed by ministerial panel
"ITC of approximately Rs 14,000 crore involving 66,000 taxpayers stands blocked as on date. This is only 0.38% (Approx.) of average ITC utilised by all taxpayers in a financial year," tweeted GSTN, the company that handles the technology backbone for goods and services tax.

Two committees of state finance ministers would be reviewing the current tax slabs, GST exempt items, detect potential evasion sources and suggest changes in IT systems. The committees has been set up by the Ministry of Finance. The Group of Ministers on rate rationalisation would also review the inverted duty structure, recommend measures on rationalisation including merger of tax rate slabs. A report would be submitted in two months by the seven member panel, headed by Karnataka Chief Minister Basavaraj Bommai and include West Bengal Finance Minister Amit Mitra, Kerala Finance Minister K N Balagopal, Bihar Deputy Chief Minister Tarkishore Prasad.

Under the Goods and Services Tax the committee would also review the supply of goods and services exempt, with an aim to expand the tax base and eliminate the breaking of ITC chain.

Second committee to review IT tools and interface

The second committee on GST system reforms would identify potential sources of evasion and suggest changes in IT systems and business processes to plug the leakage of revenue.

This committee consists of an eight-member panel and is headed by Maharashtra Deputy Chief Minister Ajit Pawar, would include Delhi Deputy Chief Minister Manish Sisodia, Tamil Nadu Finance Minister Palanivel Thiaga Rajan and Chhattisgarh Finance Minister T S Singh Deo.

They would review the IT tools and interface available and would recommend ways to make them more effective, detect possible use of data analysis which would enable better tax compliance and suggest ways of better coordination between central and state tax officers.

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