Arun Jaitley to chair the 31st GST council meet concerning the rate cuts amidst

NewsBharati    22-Dec-2018
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New Delhi, December 22: The GST council is set to hold it’s 31st GST meeting today amid talks of the rate cut. Finance Minister Arun Jaitley will be chairing the meeting. This meeting is held in the backdrop of Prime Minister’s Modi’s statement recently that said, “Work is being done to ensure that 99 percent of the goods and services are brought under the 18% GST rate slab.”
 
The council is also likely to discuss proposal to lower the cess on plug in hybrid cars. A discussion on the revenue position of the centre and the state and esay refined related rules for exporters is also likely to be on the agenda.
 
The council is also expected to take up the issue of transferring ownership of the IT backbone GST network in a government own company, a proposal that was approved in the month of September. Over 1200 goods and services fall into four broad tax slabs, those being 5%, 12% , 18% and 28%. The last major round of rate cut happened in July when the council decided to cut tax on 80 items.
 
"There are 34 goods in the highest tax bracket of 28 per cent which includes air conditioners, dish washing machines, set-top boxes for TVs, monitors and projectors, tyres and construction items like cement. The GST Council is likely to reduce the tax rates on cement and tyres to 18% from 28%. Electronic items like air conditioners, power banks, computer monitors and dish washing machines will be cheaper as the GST on these products is likely to be pared. In order to promote the Central Government’s affordable housing scheme, the GST Council is likely to lower the 12% tax rate on housing to 8% from 12%.Items that are likely to be retained in the 28% per cent slab include aerated drinks, cigarettes, bidi, tobacco products, pan masala, smoking pipes, automobiles, aircraft, yachts, revolvers and pistols", PTI reported. 
 
The GST Council has been constituted under Article 279A of the Constitution and it can alone which has been constitutionally empowered to decide on the GST rate for goods and services. The neutrality of the council in the decision-making thus stands severely eroded and will be highly detrimental to the future functioning of the GST Council.