The 40th Goods and Services Tax (GST) Council meeting is likely to happen on 14 June 2020. This meeting will be the most important one as it will be the first meeting since the outbreak of the COVID-19 in India. The conference will take place amid pressure on tax collection. The GST collections have already taken a hit because of the lockdown imposed on 25 March 2020 to control the spread of COVID-19.
Generally, the GST Council is headed by the Union Minister of Finance and comprises members of all states and Union Territories (UTs). Due to the prevailing conditions of COVID-19, the Council meeting scheduled might be held via video conference.
The 39th GST Council had discussed the economic impact of coronavirus in March, and the Council had noted the points that the addition of cases in India was very low.
Meanwhile, the Finance Ministry is not in favour of raising the GST rates on non-essential items at the Council meeting to boost the revenue collections amidst the pandemic. If the GST rates on non-essential items are increased, it will further reduce their demand and impede the overall economic recovery. However, the decision will be taken in the 40th GST Council meeting.
In the current COVID-19 economic scenario, any new proposal to introduce a disaster cess would be nothing less than the adversity itself. Such a plan would prove counter-productive as the sales figures are already weak due to slump in demand. Also, the implementation of disaster cess would lead to an increase in price that could further hamper the sales.
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DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.