The Goods and Services Tax Council, which is meeting for two days in Srinagar, on Thursday approved all nine rules required to roll out the new tax regime from July, PTI reported. The rate of taxation on 80-90% of items, too, has nearly been finalised by the Council.
The nine rules finalised by the Council relate to composition, valuation, transition, input tax credit, invoice, payment, refund, registration and return. Items that will be exempted from the GST are also expected to be fixed by Thursday evening, Around 100 items will be part of the exempted list, reported Business Standard.
On Day One of the crucial meet, items falling in the 0%-5% GST rate were discussed. Items falling in the other slabs – 5%, 12%, 18% and 28% – will either be discussed later on Thursday or on Friday.
The council, chaired by Finance Minister Arun Jaitley, comprises state finance ministers. The meeting is being conducted at the Sher-i-Kashmir International Convention Centre in Srinagar amid very high security. Around 3,000 personnel, including the state police, BSF and CRPF, have been deployed for the high-profile meeting.
Meanwhile, Jammu and Kashmir Finance Minister Haseeb Drabu said the state would pass the GST Bill in the legislative assembly within a month. “It will be very beneficial for the state of Jammu and Kashmir and we estimate that our tax revenue will increase by Rs 1,500 crore to Rs 2,000 crore,” Drabu told reporters before the meeting, reported PTI.
The choice of venue, at a time when the state has been reeling from violence and street demonstrations, is being taken to be an assertion of power by the Bharatiya Janata Party which partners the People’s Democratic Party in Jammu and Kashmir.