The all-powerful GST Council, in its 38th meeting here on Wednesday, voted for a uniform rate of 28% on lotteries across the country. Despite pressure to boost revenues amidst a shortfall, the GST Council chose not to tamper with the rates. It was decided to extend the annual date of GSTR 9 filing to January 31, 2020, and waive the late fee for all taxpayers who have not filed GSTR1 from July 2017 to November 2019.
Highlights:
- The GST Council on Wednesday fixed a uniform tax rate of 28% both state and private lottery
- Revenue Secretary Ajay Bhushan Pandey said the new rate for the lottery will come into effect from March 2020
Non-BJP ruled states said the union government may be headed for a sovereign default as it has refused to assure them of paying on time the GST dues guaranteed to them through a Constitutional amendment. M S Mani, Partner, Deloitte India, said it is good to see that the rates have been left unchanged as frequent alterations create business difficulties. “The focus on revenue augmentation measures could lead to several anti-evasion measures in the coming months as the decision to block ITC in cases of fake invoicing indicates.”
The GST Council also rationalised tax rate on woven and non-woven bags to 18%, Sitharaman said, adding exemption has been given on long-term lease for industrial plots to facilitate setting up of industrial parks.
Every attempt was made to keep the tradition alive but eventually, the council was reminded that tradition was not part of the rulebook. It was not imposed by council or me but on a request from a member-Finance Minister Nirmala Sitharaman on deviating from tradition of not voting in council.
Levy of penalty relaxed for non-filing of GSTR-1 from July 2017: Revenue Secretary after GST Council meeting. GST Council exempts long term lease on industrial plots to facilitate setting up of industrial parks: Revenue Secretary. GST Council fixes 28% tax rate on lottery effective March 1, 2020: Revenue Secretary.
This is the first time since the launch of the new overarching indirect tax that the Council has taken a decision through the voting route.
During the voting, 21 states voted in favour of a uniform rate
Sitharaman also attended a pre-budget meeting with different chief ministers and finance ministers today. The GST Council is seeking ways to plug revenue leakage, improving the efficiency of the GST system using technology and examine specific steps to augment revenue.
The GST Council had earlier asked the state governments about their views on reviewing rates and ways to increase tax proceeds.
Delhi deputy chief minister Manish Sisodia said raising GST rates is a knee jerk reaction that will affect consumers. Investors are keenly watching the on-going GST council meet, a rate hike is looking unlikely due to a surge in inflation while the focus will be more on revenue realisation.
