New Delhi: This center is looking to start a discussion about correcting anomalies in the structure and addition of income, along with proposals to revise the compensation formula when the GST Board meets in Lucknow on Friday.
Although the agenda is not focused on compensation, the source told the toy of the reverse task structure for segments such as textiles, footwear and fertilizers ready for discussion even as a very strong panel consisting of unity and the Minister of Finance is expected to choose a new mechanism of tax bricks, with Lower levies for those who choose to come out of the input tax credit mechanism (IKK), and Mentha, while leaving the controversial Pan Pan Pan problem.
“Compensation cannot be discussed in isolation.
We also need to look at the leakage of income leaks and income to increase collections,” said the government’s source, which showed that the center would attack hard bargains.
The center has convinced revenue to countries if annual growth is below 15% over the first five years of implementation, which ends next June.
Countries expect continued compensation for several years, arguing that they have given their rights to their taxes.
Although the reverse task structure for textiles, footwear and fertilizers, where inputs attract higher taxes than the final product, have been on the agenda, countries have tried to avoid discussions.
Increasing taxes on certain textile products and footwear may not be politically uncomfortable, especially when the ministers meet in Lucknow polls, but tax officials argue that there is a need to improve anomalies, which affect business.
GST tweaking on fertilizer can be seen to do something that is not a pro-farmer, but officials show that the burden in any case is borne by the center through subsidies, which increases.
What also proved to be a divisive divide problem even for the ministerial group formed specifically was a proposal for capacity-based taxes for PAN Masala, sectors that look vulnerable to embezzlement.
With the panel still split, the GST board can delay the decision.
But when it comes to bricks, where the host has an interest, the board is expected to approve a structure that allows Levy 5% without the benefits of ITC, and 12% for those who agree to credit for input.
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