Sitharaman-led GST Council has a key task now to develop a long-term vision for tax
As GST Council concluded it 54th Council meeting, it was clear that the council had once again quickly reacted to certain industry pain points and rectified them and also simultaneously put in place GOMs for long-term policy corrections.. Its tax policy administration at its best and the spirit of cooperative federalism shown is the icing on that cake.
The Council's recommendations encompass a wide array of initiatives, starting from rationalization of GST rates on various goods and services and regularizing the past period on ‘as-is where-is basis’ to avoid any future litigation like in case of film distribution service, provide exemptions on research and development services and reducing tax rates on cancer drugs.
The GST council also brought about changes in the law and rates to rectify unintended levies and demands starting with exempting import of services by an establishment of a foreign airlines company from a related person outside India, when made without consideration and regularizing past cases on an ‘as is where is’ basis thereby putting to rest the huge demands that were raised on foreign airlines in the recent past. Further, clarifying the place of supply in case of advertising services and data-hosting services when provided to foreign entity to be the location of recipient thereby to be treated as export of services, are all decisions that will help resolve multiple ongoing litigations and provide the much-needed relief to the respective industries.
