GST council begins meet to finalise goods & services for each rate slab amid hectic lobbying by industries

SRINAGAR: The crucial Goods and Services Tax Council meeting to finalise placement of goods and services in the four approved rate slabs began here on Thursday amid intense lobbying from various industry groups for keeping their respective products in the lowest bracket.

States have also favoured including real estate within GST and fitting services in lower rate slabs as they directly impacted consumers.

The GST council has already finalised four slabs — 5%, 12%, 18% and 28% — and cess for tobacco and luxury goods.

“This is the most important meeting because tax is to be decided and this is the concluding part of the GST Council deliberations,” Jammu & Kashmir finance minister Haseeb Drabu said.

“Importing state like Jammu & Kashmir will benefit and our estimate is we will benefit Rs 1,500-2,000 crore in tax revenue on GST implementation. Prices will come down for common man,” he said.

Drabu and Delhi finance minister Manish Sisodia have pitched for inclusion of real estate in the GST regime.

Kerala finance minister Thomas Isaac said the state wants 5% tax on gold. “Kerala wants minimum of 5 % tax on gold. It's a luxury product and price of gold has quadrupled in last one decade and so, what's the trouble about paying tax?” he said.

Delhi’s Sisodia said there are concerns over fitment of services.

“I have raised some concern which include services which are to be brought in GST because service delivery destination is vague, we should discuss this,” he said, adding that the fitment of insurance and telecom services will be decided between Thursday and Friday.

Industry associations such as leather footwear and biscuit manufacturers have sought lower slab for low cost products.

Meanwhile, Jammu & Kashmir plans to make some changes using its special constitutional position. “We draw our power in Jammu & Kashmir to tax from the Section 5 of the Constitution of the state, whereas all other states draw their power from Article 246 of the Constitution of India,” Drabu said. “So we will bring in some changes and we will try and introduce the GST bill within 30 days in the state legislature.”