Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
The Goods and Services Tax (GST) compensating cess placed on products such as automobiles, liquor, aerated drinks and coal could terminate before the March 31, 2026 deadline due to strong GST receipts each month.
The states have already received ₹9.14 lakh crore in compensation for revenue shortfalls during the transition period of five years ended June 2022. However, the cess has been continued to repay a loan of ₹2.69 lakh crore taken during the Covid pandemic for this purpose, according to anonymous sources.
While launching the new indirect tax regime, the GST law assured states of a 14% increase in their annual revenue for the five-year period from July 1, 2017 to June 30, 2022. The GST law also guaranteed to meet their revenue shortfall, if any, through a compensation cess levied on luxury goods and so-called sin products.
On the recommendation of the GST Council—the apex decision-making body on indirect tax matters—the government issued a notification on June 24, 2022, to continue the cess beyond June 30, 2022.
“Technically, the removal of GST compensation cess would make other products cheaper, unless the GST Council decides otherwise,” said an official, adding that any extension would be difficult as that would need endorsement by a three-fourth majority of the weighted votes. In the GST regime, different types of products attract different cess rates.
Other items include aerated water, lemonade and caffeinated beverages 12% and different types of motor vehicles, from 1% to 22%. The 48the GST Council that met in New Delhi clarified on December 17, 2022, that a higher rate of compensation cess of 22% would be applicable to motor vehicle fulfilling all four conditions – if it is popularly known as SUV and has engine capacity exceeding 1,500 cc, length exceeding 4,000 mm and a ground clearance of 170 mm or above.
Also Read : ₹20 lakh cr pending direct tax demand under litigation: govt official Budget: Sitharaman hikes capital spend, trims deficit for next fiscal; tax rates unchanged
Russia's metallurgical coal imports have increased threefold in the last three years to around 15.1...
Energy 06-May-2024
JSW Steel, India's largest alloy manufacturer, has raised $900 million from a consortium of eight fo...
Large Corporate 19-Apr-2024
In exchange for an agreement over their Sicomines copper and cobalt joint venture in the Democratic...
Africa 29-Jan-2024
South Korean auto majors Hyundai Motor Company and Kia Corporation declared a collaboration with hom...
Automobiles 08-Apr-2024
Tata Steel is exploring utilising nuclear energy to advance its green steel initiatives. It proposes...
Business 22-Aug-2024
Veolia, a French utility company, has reached an agreement to acquire a gas-fired power plant in Hun...
Europe 19-Feb-2024