A set of decisions taken at the 55th Goods and Services Tax (GST) Council meeting on Saturday is expected to address Kerala’s grievances about the Integrated GST (IGST), Finance Minister KN Balagopal’s office said.
A meeting chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer decided to ensure that the state where the consumer is located is specifically mentioned in bills for online services.
When merchants fail to specify the destination of service on bills related to interstate transactions, the state of consumption faces a loss of tax revenue. The GST Council decision is expected to offer a solution to this problem.
Kerala has been demanding greater precision in matters related to IGST, which is levied by the central government, and then settled between the central and state governments.
Additionally, the IGST Settlement Committee has submitted recommendations to ensure greater clarity and accuracy in the settlement process. This measure is expected to benefit Kerala.
In July, the Kerala Public Expenditure Review Committee had emphasized the need for Kerala to focus on the IGST mechanism, observing that the existing system actually works towards a revenue loss for the state.
published – December 21, 2024 at 10:14 am IST