GST Council meeting: Appellate tribunal, tax on cement, pan masala likely on agenda

Establishment of appellate tribunal, mechanisms to curb tax evasion in tobacco and pan masala businesses and lowering of taxes on cement are likely to be on agenda of the 49th GST Council meeting to be held in the national capital on Saturday.

Real estate sector has been pitching for lower GST on cement especially to give a boost to affordable housing.

Addressing a post-budget industry interaction in Bhubaneshwar on Friday Union Finance Minister Nirmala Sitharaman said, “as regards 28% (GST on cement) it’s not just in my hands. It has to be decided by the council.”

She said finance ministers of every state sit in the council and they would have to take a call on lowering the GST on cement.

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Developing a mechanism to plug tax evasion in tobacco and pan masala businesses is also likely to be on the agenda. GST on tobacco and pan masala is 28%. However, it also attracts hefty cess. Tobacco attracts a cess of 290%, while pan masala 135%.

Tax evasion is quite common in pan masala and gutkha industries. A ministerial panel appointed by the GST council has recommended imposition of capacity-based taxation with a requirement of greater disclosure. The ministerial panel was headed by Odisha finance minister Niranjan Pujari.

The GST Council is likely to discuss the suggestions of the panel and may come up with a mechanism to curb tax evasion in tobacco and pan masala businesses.

Another major issue on the GST Council’s agenda on Saturday is likely to be the setting up an appellate tribunal.

Last year, a group of ministers chaired by Haryana deputy chief minister Dushyant Chautala suggested that the appellate tribunal should consist of two judicial members, and one technical member each from the Centre and states, besides a retired Supreme Court judge as president.