GST Council mulling single tax rate of 28 pc on state-run lottery from March

The GST Council meeting on Wednesday decided to levy a single rate of 28 per cent on state-run and state-authorised lottery from March 2020 and to raise GST to a uniform rate of 18 per cent on wove and non-woven bags and sacks of polyethylene or polypropylene strips.

The decision was taken at a meeting of the GST Council convened by Finance Minister Nirmala Sitharaman and attended by state finance ministers. In a break with tradition, the decision was taken by voting and not consensus. It also decided to exempt upfront amount payable for long term lease of industrial and financial infrastructure plots by an entity having 20 per cent or more ownership of Central or State government. At the present the exemption is available to an entity having 50 per cent or more ownership of Central or State government. The change shall become effective from January 1, 2020.

An official release said the Council also considered the rate of GST on Woven and non-Woven bags and sacks of polyethylene strips or the like, whether or not laminated of a kind used for packing of goods (HS code 3923/6305) in view of the requests received post the changes recommended on such goods in the first meeting and recommended to raise the GST to a uniform rate of 18 per cent on all such bags including flexible intermediate bulk containers.

On law and procedure-related changes, the Council recommended that Grievance Redressal Committees (GRC) will be constituted at Zonal and State level with both GST and SGST officers and including representatives of trade and industry and other GST stakeholders. The committees will address grievances of specific and general nature of taxpayers at the zonal and state level.

Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM-9C for FY 2017-18 to be extended to Jan 31, 2020.