New Delhi : The 38th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman here.
The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of Ministry of Finance. The GST Council recommended the following relating to changes in GST rates, exemptions.
1. To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1st January, 2020.
2. To levy a single rate of GST @ 28% on both State run and State authorized lottery. This change shall become effective from 1st March, 2020.
3. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene 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 last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January, 2020.
Earlier, Union Finance Minister Nirmala Sitharaman on Monday said the government was making every effort to be on track to reach its goal of making India a $5 trillion economy in the stipulated timeline.
In order to spur growth, the government is trying to frontload infrastructure spend as much as possible, she said at Times Network’s India Economic Conclave in an address delivered through satellite link.
The FM’s statement came days after official data showed India’s economic growth slumped to over six-year low in July-September quarter at 4.5 per cent. In order to reach the $5 trillion GDP goal by 2025, India needs to grow nearly triple that rate from here on.