ENA Economy 2024-10-17 17:08:35 <p><span style="font-size:14px"><strong>New Delhi, Oct 17 (KNN)</strong> The Group of Ministers (GoM) on GST compensation cess convened on Wednesday to deliberate on the potential merger of the compensation cess into the Goods and Services Tax (GST) structure.</span></p> <p><span style="font-size:14px">The meeting, chaired by Minister of State for Finance Pankaj Chaudhary, marked the first of several planned discussions on this crucial matter.</span></p> <p><span style="font-size:14px">During the deliberations, state representatives put forth a key suggestion regarding the transition period. They proposed that once the decision to merge the cess with existing taxes is finalised, no new items should be added to the current list of luxury, sin, and demerit goods.</span></p> <p><span style="font-size:14px">The states' rationale stems from the fact that the compensation cess is set to expire in March 2026, leaving limited options for restructuring.</span></p> <p><span style="font-size:14px">The prevailing view among state officials is that the most viable path forward involves integrating the levy into the existing tax framework. This would necessitate the establishment of distinct tax rates for items currently subject to the cess.</span></p> <p><span style="font-size:14px">Minister Chaudhary, addressing the media post-meeting, emphasised the need for this discussion given the impending conclusion of the GST compensation cess.</span></p> <p><span style="font-size:14px">While the minister refrained from providing specific details, he indicated that the ongoing dialogue encompasses several critical aspects.</span></p> <p><span style="font-size:14px">These include determining whether the cess should persist in its current form or be transformed into a tax, as well as potential modifications to the categories of luxury, demerit, and sin goods.</span></p> <p><span style="font-size:14px">The GoM, comprising representatives from nine states including Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Punjab, Tamil Nadu, Uttar Pradesh, and West Bengal, is scheduled to reconvene in the second week of November.</span></p> <p><span style="font-size:14px">The group is tasked with submitting its comprehensive report to the GST Council by December 31, potentially shaping the future landscape of India's indirect tax system.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39627 https://knnindia.co.in/news/newsdetails/economy/states-for-merging-gst-compensation-cess-with-existing-tax-rates 2024-10-17 17:08:35 knnindia.co.in