GST Council to consider Malawi government reports on rate rationalisation and real estate at 54th meeting

According to sources, “The GST Council is likely to be presented with a progress report on rate rationalisation by the Group of Ministers (GoM). The GoM is expected to indicate that discussions should resume on rates, slabs, merger of slabs, simpler tariff structures and correction of the inverted duty structure.”

Meanwhile, the government has reconstituted the GoM, which now comprises six states: Bihar, Karnataka, Uttar Pradesh, Rajasthan, West Bengal and Kerala.

Earlier, the GoM was a seven-member panel, of which Goa was also a part.

“The GoM is also expected to inform the council that it is now scheduled to meet on September 25 to take the discussions forward,” sources said.

With the progress report, the GoM is likely to inform the council, seeking more time to prepare a final report, sources added.

The GoM on rates is also likely to inform the council for further review of the interim report submitted in the 47th GST Council meeting in June 2021, sources said.

In its interim report, the Malian government recommended corrections in the structure of inverted rights and a revision of exemptions.

“The GoM is likely to inform that further review of the revised terms of reference, including review of textile sector, handloom sector, fertilizer sector, silk and silk weaving sector and handloom sector, requires detailed examination,” the sources said.

On GoM on Real Estate Stimulus: The other panel of ministers, which is likely to submit its progress report, is the GoM on Real Estate Stimulus under GST.

In this regard, sources said that the GoM is likely to inform the Council that based on the proposals raised by the member states, further consideration is needed and that subcommittees of officials should be constituted to assist the GoM.

“The Mauritian government is unable to reach a consensus and will likely ask for more time before drafting the final report,” sources said.

This GoM was considering proposals like GST exemption on industrial land/plots on leases of more than 30 years, whether residential apartments of Rs 45 lakhs and below should be considered affordable housing for metro cities (especially Delhi and Mumbai), and whether there should be GST exemption on cooperative societies.

This GoM has seven members and is chaired by Pramod Sawant, Chief Minister of Goa. The member states are Bihar, Uttar Pradesh, Kerala, Maharashtra, Punjab and Gujarat. The last meeting of this GoM was held on August 22.