Revenue Secretary Tarun Bajaj on Wednesday said that government is likely to bring changes in the Goods and Services Tax (GST) framework this year.
Speaking at an interactive session on Union Budget 2022-2023 organised by industry body Confederation of Indian Industry (CII), Bajaj said, "Government understands that GST rates on certain products need to be brought down to bring equity."
Further, he added, "We are open to look at the suggestions of restaurant industry" mentioning that the said industry suggested that they can go back to a higher rate if they get input tax credit.
Input Tax Credit (ITC) refers to the tax already paid by a person at time of purchase of goods and services and which is available as deduction from tax payable. It means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount.
Bajaj also added that the Finance Ministry will have to go back to GST Council if it has to tinker with the coal cess. He also said, "I take the point that 28 per cent GST needs to be reduced on high efficiency inverter ACs."
Apart from this, while mentioning capital gains, the Revenue Secretary said, "I think the capital gains provisions need a serious review. We have made too many categories in capital gains."
Post the presentation of the Union Budget in the Parliament by Finance Minister, every year, CII hosted thier annual interactive session for the industry with the Revenue Secretary and his team of senior officials from the Ministry of Finance, to understand some of the key provisions of the Budget.