GST Council to weigh tax cuts on select items

The goods and services tax (GST) Council meeting next week will discuss tax relief on certain medicines, farm products, arthroplasty implants, and services such as satellite launches by private organizations, a person with direct knowledge of the matter said.

A committee of officers that reviews proposals for tax rate changes, called the fitment committee, has recommended lowering the GST rates on unfried snack pellets to 5% from 18% and suggested that exemption from the 12% Integrated GST (IGST) could be considered when cancer medicine (dinutuximab/qarziba) is imported by individuals for personal use. The committee also recommended similar relief to medicines and food for special medical purposes (FSMP) when imported.

The identification of the suspects was the result of a meticulous examination of the database, which encompasses a staggering 1.4 crore GST payers.

Employing cutting-edge artificial intelligence and data analytics, the authorities meticulously sifted through a database of around 69,000 suspects.

In the ongoing two-month-long operation, the investigation has successfully unmasked 17,000 spurious accounts that have exploited fictitious input tax credit, as per the publication.

Notably, the probe extends to various entities across the supply chain, including prominent players in the business domain. It has come to light that a leading food delivery service provider has availed services from non-existent entities.

It is worth mentioning that previous similar initiatives have also exposed similar cases of malpractice.

Sources within the government have told TOI that Delhi, with its high success rate, stands out as the jurisdiction where a substantial number of fake registrations have been unearthed. LiveMint could not independently verify the claim.

Building on the recent crackdown, CBIC is now formulating plans for regular assessments to safeguard against the misuse of benefits. Additionally, the agency intends to strengthen regulatory measures by rolling back certain flexibilities that were introduced to ease tax payment burdens for suppliers amid the pandemic.

Senior officials have affirmed that decisions regarding these issues have already been made by the GST Council, and implementation is underway.

The overarching objective is to ensure the prevention of leakages and fortify the integrity of the system.

The matter is expected to be deliberated upon in the upcoming GST Council meeting, during which the details will be shared with state finance ministers.

Officials, however, have dismissed the idea of imposing stricter registration norms, asserting that the focus is on streamlining the process for honest taxpayers, rather than burdening them with excessive compliance.