CABINET-2NDLD GST 2 LAST

While the Centre will have one-third vote, states While the Centre will have one-third vote, statestogether will have two-thirds in the GST Council. To adopt aresolution, a three-fourths majority will be required. Asked about the agenda for the Council meeting later thismonth, Adhia said it is yet to be decided. "The GST Council will decide whether the rate would formpart of CGST Bill… Already, two committees have given theirreport based on which we will put up an agenda before the GSTCouncil and the Council will deliberate and decide," Adhiasaid. Last year, a panel headed by Chief Economic AdvisorArvind Subramanian had suggested 17-18 per cent as thestandard rate for bulk of goods and services whilerecommending 12 per cent for low rate goods and 40 per centfor demerit ones like luxury car, aerated beverages, panmasala and tobacco. For precious metal, it recommended a rangeof 2-6 per cent. A sub-committee of empowered committee of state financeministers on GST had earlier suggested 27 per cent revenueneutral rate. But the rate needed to be reworked in view oftaxation of petroleum products. While liquor has been completely kept out of the GSTambit, petroleum products like petrol and diesel will be partof the new regime from a date to be decided by the GSTCouncil. The Parliamentary Select Committee has favoured moderategoods and services tax rate of less than 20 per cent. The Cabinet in today’s meeting also decided to providefor adequate funds for meeting the recurring and non-recurringexpenses of the GST Council Secretariat, the entire cost forwhich shall be borne by the central government. The GST Council Secretariat shall be manned by officerstaken on deputation from both central and state governments,the statement said. While the GST Council will be created as per Article 279Aof the amended Constitution, the GST Council Secretariat willhave its office in New Delhi. Revenue Secretary will be the ex-officio secretary of theGST Council, which will have chairperson of the Central Boardof Excise and Customs (CBEC) as a permanent invitee(non-voting). Also, a post of additional secretary in the GST CouncilSecretariat and four posts of Commissioner (at the level ofjoint secretary to the central government) will be created.PTI JDARD