Page 42 - GSTL_3rd September 2020_Vol 40_Part 1

J24 GST LAW TIMES [ Vol. 40
To a proposal to lower the GST rate on two-wheelers at a closed-door
meeting of the Confederation of Indian Industry (CII) through a video confer-
ence, Sitharaman responded by calling it “indeed a good suggestion as this cate-
gory is neither a luxury nor a sin good,” according to a CII statement.
Sitharaman told the industry body that the matter will be taken up with
the GST Council, which is the apex body on matters related to the indirect tax.
The GST Council is chaired by the Union Finance Minister and Finance Ministers
of States are its members. The Council’s decisions are often unanimous.
A GST rate cut is under consideration to boost sagging automobile de-
mand, but the Union Finance Ministry can only make a recommendation to the
effect, a Government official said on condition of anonymity. “Any decision in
this regard will be taken by the GST Council,” the official added.
Sales of passenger vehicles dropped by about 4% in July from the corre-
sponding month last year; sales of two-wheelers tumbled by 15.24% in the same
month.
“It is not yet clear whether matters related to tax rationalisation would
be taken up in the 41st Meeting of the GST Council or in the 42nd Meeting,” the
official cited above said. The 41st Meeting of the GST Council is scheduled on
August 27 and the 42nd meeting on September 19.
A Finance Ministry official said, requesting anonymity, that the meeting
on August 27 is expected to consider only one matter - how to pay compensation
to States for their GST revenue shortfall. “It is likely that tax rate rationalisation
matters would be taken up on September 19 along with various other reforms,”
he said.
[Source : Hindustan Times, New Delhi, dated 26-8-2020]

Businesses to get GST registration within 3 days with
Aadhaar authentication
Businesses which will provide Aadhaar number while applying for reg-
istration under the Goods and Services Tax will get the approval in three work-
ing days.
The Central Board of Indirect Taxes and Customs (C.B.I. & C.) last week
notified Aadhaar authentication for GST registration with effect from August 21,
2020.
The notification also provides that in case businesses do not provide
Aadhaar number, then GST registration would be granted only after physical
verification of the place of business.
Finance Ministry sources said the GST Council in its 39th meeting held
on March 14, 2020, had approved operationalisation of Aadhaar authentication
for new taxpayers.
[Source : The Indian Express, New Delhi, dated 24-8-2020]
Electrically-operated vehicles without battery packs to
attract GST, rules AAR
A three-wheeler motor vehicle will be considered an electrically operated
vehicle if it is fitted with the battery packs, an Authority for Advance Rulings
(AAR) has ruled.
GST LAW TIMES  3rd September 2020  58
( A24 )