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GST legacy issues can undermine government’s efforts to ease tax structure

Money Control · 2m

- Taxpayers are hopeful for relief from the GST Council to alleviate their hardships. - Some recent decisions by the GST Council have created confusion and additional difficulties for taxpayers, such as GST rates on extruded products and car seats. - The classification of extruded/expanded savoury food products under different GST rates has led to ongoing litigation and confusion, as there is no relief granted for the past period. - The increase in GST rates on car seats to 28% has left taxpayers perplexed, particularly due to the comment made regarding motorcycle seats already attracting 28% GST, which is also under litigation. - The exemption granted to foreign airlines has sparked controversy regarding whether similar exemptions should be warranted for other industries importing services. - Careful decision-making and prioritization of important issues by the GST Council is crucial to avoid unintended consequences and turn benefits meant for taxpayers into miseries.