Finance and Commercial Tax Minister Shri Jagdish Devda suggested the Central Government to consider exempting medical oxygen and related equipment from GST or reducing GST on them. So that cooperation can be extended in the region to make the state self-reliant. He thanked the Union Finance Minister and the Central Government on behalf of the Chief Minister for accepting the suggestion of Chief Minister Shri Shivraj Singh Chouhan to include in the agenda the proposal to reduce the GST rate on these items from 12 percent to 5 percent.
In the 43rd meeting of the GST Council, the Finance Minister today discussed important issues in the interest of Madhya Pradesh and apprised the situation arising out of Covid-19. Union Finance Minister Smt. Nirmala Sitharaman, Union Minister of State for Finance Shri Anurag Thakur were present in the meeting. Shri Devda cited the recommendations of the Group of Ministers.
Shri Devda also thanked the Union Finance Minister for nominating him a member of the committee of Group of Ministers constituted for capacity-based taxation. The committee will consider issues related to providing composition facilities to Pan Masala, Gutka, Sand Mining etc., evaluation of services like casinos, online gaming, racecourse etc. He thanked on behalf of Chief Minister Shri Chouhan for providing timely assistance given to Madhya Pradesh by the Centre to bring Covid 19 under control. Shri Devda requested that the date for enforcement of orders issued for granting several types of exemptions and the order for reduction in tax rates be fixed uniformly as September 30.
Shri Devda said that Madhya Pradesh received an amount of Rs. 5 thousand 293 crore 23 lakh in 2020-21 under GST compensation. Thus, to provide funds by the Government of India, an amount of 4 thousand 543 crore was received under the back-to-back loan facility. Thus, in 2020-21, a total of 9 thousand 836 crores were found. For this also, on behalf of the Chief Minister, Shri Devda thanked the Central Government.
Shri Devda said that due to Covid 19 pandemic, the revenue of the state will be affected. Therefore, he requested to provide the amount of GST compensation through the back to back loan facility this year also.
GST rate on biodegradable carry bags should be reduced
Finance Minister Shri Devda urged the Union Finance Minister to reduce the GST rate on biodegradable carry bags, so that it would help in preventing environmental pollution. Also, it would be helpful in giving impetus to Swachh Bharat Abhiyan and to conserve the environment. The trend of its use will increase among common people. He said that reducing the GST rate from 18 percent will give a big boost to its use.
Minister Shri Devda requested that the ENA (Extra Neutral Alcohol) be kept under the purview of VAT, not in the GST ambit. The GST Council has not taken any decision on this point and postponed it for the next meeting.
Referring to the situation of the last three years, the Finance Minister said that the GST revenue growth of the country was around 5.98 percent in 2018-19. Similarly, the GST revenue growth of the country was around 3.80 percent in FY 2019-20. The revenue position of Madhya Pradesh was negative in 2019-20. Therefore, it would not be appropriate to consider the growth rate of GST revenue to be more than 6 percent. Even after the payment from bank loan, the compensation claim of the state pending for 2020-21 is 3 thousand 966 crore. Therefore, in 2021-22, it would be appropriate to recognize the potential growth rate of revenue at 6 percent instead of 7 percent.
Principal Secretary Commercial Tax Smt. Deepali Rastogi, Principal Secretary Commercial Tax Shri Raghvendra Singh and departmental officers were present in the meeting.