On top of GST Council's 'To Do' list: COVID relief, States' cash woes

Experts warn second wave more lethal for businesses too, moot an urgent rescue act

The Goods and Services Tax (GST) Council, meeting this Friday, after a gap of over seven months, should prioritise giving relief on the taxes levied on COVID-19 vaccines and critical medical supplies, and rationalise GST rates to provide relief to sectors that are worst hit by the second wave, according to regulatory experts. A mechanism for paying States their compensation dues for this year shall also be a knotty issue for the Council to figure out, while little headway is expected on more contentious problems such as bringing petroleum products under the GST regime to reduce the burden of high retail fuel prices on the common man. The Council should consider reducing the tax rates or zero rating the GST on essential material to combat COVID, from hand sanitizers to oximeters and oxygen concentrators, said Saloni Roy, senior director at Deloitte India. COVID-related expenditures incurred by employers for the welfare of employees and their families may also be considered as input tax credit, she said.