New Delhi,may 29:
The finance ministry is not in favour of increasing goods and services tax rates on non-essential items in the next month’s meeting of the GST Council, despite depressed revenue collections due to the nationwide lockdown to contain the spread of COVID-19.If goods and services tax (GST) rates are increased on non-essential items, sources said it will further bring down their demand and impede the overall economic recovery .Post the lockdown, the demand has to be induced and economic activity has to improve on all fronts, not just on essential items side, they said.However, the decision will be taken by the GST Council headed by the finance minister, according to sources.Rates will come up for discussion during the council meeting next month to be attended by state finance ministers, they added.The 39th meeting of GST Council was held in March, which proposed rationalisation of taxes on many items.The nationwide lockdown was announced by Prime Minister Narendra Modi on March 24 for 21 days in the first leg in a bid to contain the spread of novel coronavirus. It was then extended till May 3 and then again till May 17. The fourth phase of lockdown is in place till May 31.The lockdown has led to a major shrinkage in GST collections. The government deferred the release of April GST revenue collection data due to the lockdown.The government had last month extended the deadline to file GST returns for March to May 5, from April 20.
