The GST Council on Wednesday resorted to voting for the first time to
decide on an issue as it fixed a uniform tax rate of 28 percent on both
state and private lotteries.
Decisions in the previous 37 meetings of the GST Council, headed by the Union Finance Minister and comprising representatives of all states and UTs, had been taken unanimously. These included fixing of tax rates on dozens of goods and services, but never had voting been done to decide on any issue in two-and-a-half years of its existence.
However, when the issue of levy of GST on lottery came up at the 38th meeting of the Council, the consensus remained elusive, which led to a vote being taken to decide on the issue.
Briefing after the meeting of the Council, Revenue Secretary Ajay Bhushan Pandey said the new rate for lottery will come into effect from March 2020.
The Council meeting, chaired by Finance Minister Nirmala Sitharaman, also rationalised tax rate on woven and non-woven bags to 18 percent, he said, adding exemption has been given on long-term lease for industrial plots to facilitate setting up of industrial parks.
"The Council also considered the rate of GST rate on woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods in view of the requests received post the changes recommended on such goods in the last meeting," Pandey said.
It was recommended to raise the GST to a uniform rate of 18 percent from 12 percent on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC), he said, adding this change shall become effective from 1 January 2020.
The panel also relaxed levy of penalty for non-filing of GSTR-1 from July 2017, he said.
"It also decided to exempt upfront amount payable for long-term lease of industrial/financial infrastructure plots by an entity having 20 per cent or more ownership of Central or state government...This change shall become effective from 1 January 2020," he said.
Decisions in the previous 37 meetings of the GST Council, headed by the Union Finance Minister and comprising representatives of all states and UTs, had been taken unanimously. These included fixing of tax rates on dozens of goods and services, but never had voting been done to decide on any issue in two-and-a-half years of its existence.
However, when the issue of levy of GST on lottery came up at the 38th meeting of the Council, the consensus remained elusive, which led to a vote being taken to decide on the issue.
Briefing after the meeting of the Council, Revenue Secretary Ajay Bhushan Pandey said the new rate for lottery will come into effect from March 2020.
The Council meeting, chaired by Finance Minister Nirmala Sitharaman, also rationalised tax rate on woven and non-woven bags to 18 percent, he said, adding exemption has been given on long-term lease for industrial plots to facilitate setting up of industrial parks.
"The Council also considered the rate of GST rate on woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods in view of the requests received post the changes recommended on such goods in the last meeting," Pandey said.
It was recommended to raise the GST to a uniform rate of 18 percent from 12 percent on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC), he said, adding this change shall become effective from 1 January 2020.
The panel also relaxed levy of penalty for non-filing of GSTR-1 from July 2017, he said.
"It also decided to exempt upfront amount payable for long-term lease of industrial/financial infrastructure plots by an entity having 20 per cent or more ownership of Central or state government...This change shall become effective from 1 January 2020," he said.
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