Latest news with #GST)Council
Mint
23-05-2025
- Business
- Mint
Tax rate revamp on GST Council agenda; India to push FATF to grey list Pakistan
New Delhi: The Goods and Services Tax (GST) Council will review proposals for tax rate rejig at its next meeting to be held within a couple of months to see how best to simplify the indirect tax regime and to support consumption demand, a person informed about Centre-state discussions said. Also Read | Why 'record' gross GST collections in April don't tell the full story The central government also expects the projected 'above normal monsoon' this year to augur well for the rural economy and consumption demand, the person cited earlier said on the condition of anonymity. Any tax relief on GST could help in boosting demand for goods and services in the economy, complementing the boost from plentiful rains and the income tax relief to the middle class offered in this year's annual budget. 'Operation Sindoor', launched by India's armed forces against terror infrastructure in Pakistan and Pakistan-occupied and Kashmir earlier this month, is unlikely to have any fiscal impact on the Union budget year as mechanisms have been established for taking care of any such spending requirements. Also Read | Chartering the troubled waters of accommodation services under GST India will actively pursue reinstating Pakistan in the grey list of Financial Action Task Force (FATF), the global agency that develops policies to combat money laundering and terror financing, the person said. If included, Pakistan will have to work closely with FATF to strengthen its framework to fight terror financing, while also having to deal with challenges such as reduced investor confidence and increased transaction costs. Queries sent to the spokespersons for finance, corporate affairs and external affairs ministries and to the GST Council secretariat on Friday seeking comments for the story remained unanswered till press time. Also Read | Should you register for GST? Here's everything you need to know. FATF is set to hold seven meetings this year, including multiple plenary deliberations starting 25 May, going up to 20 October, and a ministerial meeting in September, according to a schedule available on the agency's website. On Thursday, Prime Minister Narendra Modi said seven distinct groups, comprising leaders from various political parties and foreign policy experts, 'are actively working to present Pakistan's true face to the world," according to an official statement. The government is now preparing a cabinet note on the PM Internship scheme, incorporating learnings from the two phases of pilot project implemented so far. Once the cabinet clears it, the final scheme will be rolled out, the person said. The PM internship scheme announced in the FY25 budget offers 12-month internships in India's top companies to 10 million youth over five years. The interns will get a monthly assistance of ₹4,500 from the government and ₹500 from the company, in addition to a one-time grant of ₹6,000 from the government to support them. The US administration's proposal for taxing outward remittance flows could have an impact on remittance flows to India, but the government has not yet quantified the extent of the dent, the person cited earlier said.
Time of India
23-05-2025
- Business
- Time of India
GST council set to convene soon; tax simplification, compensation cess likely on agenda
The Goods and Services Tax (GST) Council is expected to meet soon to deliberate on tax rate rationalisation, simplification, and the future of the compensation cess, a government source said on Thursday. "There are three or four different aspects relating to making GST simpler. We will take up the issue of compensation cess, rate rationalisation and simplification," the source told news agency PTI. The GST Council, chaired by the Union Finance Minister and including state finance ministers, last met in December but did not consider the reports from two Groups of Ministers (GoMs) on rate rationalisation and potential reductions in health and life insurance tax rates. These GoMs, which proposed rate cuts and exemptions for specific sectors, are still in the process of finalising their recommendations. Meanwhile, the GoM on Compensation Cess, led by Minister of State for Finance Pankaj Chaudhary, is examining the continuation of the compensation cess beyond its current end date of March 2026. Currently applied to luxury and sin goods, the cess is being used to repay loans taken during the COVID-19 pandemic to offset revenue losses suffered by states. The GoM is now assessing ways to retain the cess revenue in a revised form and how it could be shared between the Centre and the states going forward. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
