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This is an archive article published on June 4, 2021
1st GST GoM meet: Talks on ‘tax cuts for benefit of people’
The GoM was formed after the states and Centre had differing views on the reduction in tax rates for these items in the 43rd GST Council meeting on May 28.
Conrad K Sangma
Meghalaya Chief Minister Conrad Sangma on Thursday chaired the first meeting of the Group of Ministers (GoM) formed to examine GST concessions and exemptions on Covid relief materials like vaccines, drugs, hand sanitisers, masks, PPE kits and oxygen-related equipment.
Sangma said the GoM has recommended the reduction of rates on a number of times, but the final call would be taken by the Council.
The GoM was formed after the states and Centre had differing views on the reduction in tax rates for these items in the 43rd GST Council meeting on May 28. The GoM has to submit its report by June 8. “I will not be able to share the details right now because these are only recommendations. Ultimately, these will be put into a proper report and submitted to the Council. Then the Council will ultimately take a decision,” he said.
Sangma said the GoM went into a detailed discussion of almost all the items that were recommended by Fitment Committee.
He described that the “basic principle” that was followed in the discussion was, firstly, “to see the benefits and the tax reductions that would give the benefit directly to the people”.
“Therefore, items that were very much personal oriented that people or patients would have to directly buy, we made sure that we could bring down the concessions and the rates to the maximum amount possible so that in these difficult times maximum relief can be given,” said Sangma.
Chief Ministers of Congress-ruled Rajasthan and Chhattisgarh had earlier this week hit out at the Union government for not including Finance Ministers from party-ruled states in the GoM. Congress and other Opposition-ruled states have been demanding a reduction in taxes and zero rate for these items, but the Central government felt the move may not result in the benefits being passed on to the end users of patients and citizens.
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The other GoM members are Gujarat Deputy Chief Minister Nitinbhai Patel, Maharashtra Deputy Chief Minister Ajit Pawar, Goa Transport Minister Mauvin Godinho, Kerala Finance Ministers K N Balagopal, Odisha FM Niranjan Pujari, Telangana FM T Harish Rao and Uttar Pradesh FM Suresh Kumar Khanna.
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