GST Council clears proposal to remove tax exemptions on a Few Items

Current Context: Many important decisions have been taken at the 47th meeting of the GST Council, chaired by the Union Finance Minister Nirmala Sitharaman and comprising state counterparts.

• It has approved a host of compliance procedures for GST-registered businesses on high-risk taxpayers to check evasion.
• Pre-packed and labeled food items such as meat, fish, curd, paneer, and honey will now attract GST.
• In addition to that, they have approved changes in tax rates on some goods and services while allowing states to issue an e-way bill for the intra-state movement of gold and precious stones.
• It has also been demanded that either the revenue sharing formula under the GST regime should be changed or the compensation period should be extended by five years.
• GST was introduced on July 1, 2017, and states were assured of compensation for the revenue loss, till June 2022.
• Besides a proposal for extension of compensation to states beyond June 2022 and the imposition of 28% GST on casinos, online gaming, etc is made in this meeting.

Question:

Q.1 Consider the following statements regarding Goods & Service Tax.
A. It is a single tax on the supply of goods and services, right from the manufacturer to the end consumer.
B. Kelkar Task Force on indirect tax had suggested a GST in 2003.

Select the correct option given below
a. Only A

b. Only B
c. All of the above
d. None of the above