GST Council meet: New system for single monthly return announced, to be implemented within 6 months

The GST Council met for the 27th time via video  conferencing today. The council compromised of Union Finance minister and state ministers. The meeting held via video conferencing as the doctors have advised the Union Finance Minister Arun Jaitley to stay in isolation to avoid contracting infection. 

The GST Council decided on two major factors, when the meeting got over, West Bengal finance minister Amit Mitra informed that states opposed levy of cess over and above the goods and services tax (GST) rate. 

The GST council also announced a new system for single monthly return which would be implemented within a time span of six months. 

The Union Finance Minister Arun Jaitley addressed the media after the meeting and informed that the GST Council approved making GST-Network a government entity by taking over 51% stake held by private entities.

Second important item discussed was change in ownership structure of GSTN,the original structure of GSTN-49% held by the govt*balance 51% by other entities. I had made a suggestion that this shareholding of 51% should be taken over by the govt&divided equally b/w states&Center:FM pic.twitter.com/i7MTk3UCX4

— ANI (@ANI) May 4, 2018

FM Jaitley further informed that the central government would now own 50 per cent in GST-Network and all the states would collectively hold the remaining 50 per cent stake. 

Eventually Central govt should hold 50% and state govts will hold 50% collectively. The collective share of state govts will be pro-rata divided among the states as per their GST ratios: FM Jaitley after GST Council meet

— ANI (@ANI) May 4, 2018

The council also took the condition of Sugarcane farmers in consideration. "Sugarcane farmers are in deep distress", FM Jaitley said. 

"A separate group of five ministers within two weeks would make a recommendation to meet contingency of this kind when the cost of a commodity is higher than its selling price. Committee would be announced within next two days", Jaitley said. 

It was widely expected that the GST council would take call over the proposal of converting GSTN into a government company.

FM Arun Jaitley last month had asked Finance Secretary Hasmukh Adhia to "examine the possibility" of converting GSTN into a majority government company or a 100 per cent government company. GSTN provides the IT backbone for the new indirect tax regime.

Currently, five private financial institutions -- HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd -- hold 51 per cent stake in GSTN, which was incorporated on March 28, 2013, in the erstwhile UPA regime.

The remaining 49 per cent stake is with the Centre and States.