After the 32nd meeting of the GST Council, the government will find itself in a uncomfortable position to defend the catch-line “One Nation, One Tax” for GST.
By giving State governments an option to decide soon between Rs 40 lakh Rs 20 lakh as the threshold limit, the GST Council seems to be losing its stranglehold over decision making ever so slightly. This could also be due to a change in the Constitution of the GST Council after the results of the recent State elections.
The GST Council approved Levy of Cess on Intra-State Supply of Goods and Services within the State of Kerala at a rate not exceeding 1 per cent for a period not exceeding two years. Whether this was a well-thought out decision based on Kerala SGST revenues or just another ad-hoc one is not known. It is important that the cause is met rather than an arbitrary cess being levied.
Please give your opinion.
CA Lalit Gandhi
Sudheendra & Co LLP