India's GST Council meeting postponed. Reason? BRICS Summit
What's the story
The 57th Goods and Services Tax (GST) Council meeting has been rescheduled from September 12 to October 7. The change comes as the original date coincided with the BRICS Summit in New Delhi on September 12-13. The venue for the rescheduled meeting is likely to remain New Delhi, despite the changes in schedule.
Implications
Logistical concerns
The GST Council meeting's postponement was necessitated by logistical concerns over the BRICS Summit.
The scale of arrangements for the high-level international gathering in New Delhi posed potential challenges.
The GST Council, which is headed by Union Finance Minister Nirmala Sitharaman and includes state finance ministers, plays a key role in determining tax rates and exemptions under India's GST regime.
Meeting focus
Pending issues likely to be discussed at next meeting
Despite the postponement, the GST Council is likely to discuss several pending issues at its next meeting. These include proposals aimed at simplifying compliance for businesses.
One such proposal seeks to protect buyers from losing input tax credit (ITC) if suppliers fail to deposit taxes with the government.
It suggests that buyers could get ITC by proving payment through banking channels or other prescribed documents.
Proposal review
Other issues under consideration by GST Council
The GST Council is also considering easing provisions for companies to claim ITC on vehicles purchased in the company's name for employees' use and group health/life insurance policies bought for employees.
Another issue is the GST treatment of corporate guarantees within a group, with businesses seeking clarity on valuation and taxation.
The Council may also consider allowing small businesses to obtain GST registrations in multiple states.