The GST Council will meet in Lucknow on Friday, 17 September, to take decisions on issues related to duty revision that were put on the back burner in earlier meetings to focus on COVID-19 relief measures.
The 45th meeting of the council is expected to discuss the compensation issue for the current year, but sources said it may also take a few steps to correct inverted duty structure without pursuing any increase in the GST rates or move towards converging GST to three rate structure.
The council at the meeting may take up two other important items, including lowering of GST rates for two-wheelers and bringing natural gas into the indirect tax fold.
It will also reportedly announce a few measures to correct the inverted duty while discussing the compensation cess dues arising in 2021-22.
Similarly, the council may also consider lowering the GST rate of 28 percent on two-wheelers to give a boost to its sales affected during the pandemic.
The council may reportedly also consider extending tax concessions to 11 COVID-19 drugs till 31 December since the current concessions will expire on 30 September.
“Inverted duty correction, GST cut on two-wheelers and inclusion of natural gas into GST fold are on the agenda,” said a person familiar with the agenda of the GST council meeting.
Natural gas may be included under a three-tier GST structure where rates would vary depending on the usage. While piped natural gas (PNG) for homes may be kept at a lower rate of 5 percent, commercial piped gas may attract the median 18 percent GST rate and automobile fuel CNG may be kept in the highest bracket of 28 percent.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)