The GOM will submit its report on capacity-based taxation and special infrastructure planning in some areas to the GST Council in six months. After this, the Group of Ministers will review the imposition of GST on pan masala and brick kilns.
A committee of state ministers will consider the possibility of levying GST based on their manufacturing capacity in areas prone to tax evasion like pan-masala, gutkha and brick kilns. The seven-member Group of Ministers (GOM), headed by Odisha’s Finance Minister Niranjan Pujari, will also consider imposing GST on Mentha oil and other such areas to reverse tax evasion on the basis of reverse duty procedure.
The GOM will submit its report on capacity-based taxation and special infrastructure planning in some areas to the GST Council in six months. As per the terms of reference (TOR) of the Group of Ministers, the committee is under the existing legal provisions regarding the potential of manufacturing unit and special structure schemes in areas like Pan Masala, Gutkha, Brick Kilns, Sand Mining, etc., where there is a high probability of GST evasion. Will explore possibilities of levying GST on Aadhaar.
Ministers of these states included in GOM
Other members of the GOM include Delhi Deputy Chief Minister Manish Sisodia, Haryana Deputy Chief Minister Dushyant Chautala, Kerala Finance Minister KN Balagopal, Madhya Pradesh Finance Minister Jagdish Deora, Uttar Pradesh Finance Minister Suresh Khanna and Uttarakhand Agriculture Minister Subodh Uniyal. Huh.
Experts believe that bringing the main ingredients used in pan masala to mentha oil under the inverted duty system of GST will help in reducing GST evasion. Under this, if the goods are purchased from a business without registration, then the GST registered dealers have to pay tax.
Consumers like pan masala are tax evasion-prone areas. These are sold in small packets and are mostly sold through cash transactions. In such a situation, it is difficult to ascertain the supply quantity at the last level.
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