Union Minister for Finance Nirmala Sitharaman chaired pre-Budget consultations on Saturday with the Finance Ministers of states and Union Territories to gather their perspectives for the upcoming Union Budget 2024-25.
The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, along with the Chief Ministers of Goa, Meghalaya, Mizoram, Nagaland, and Sikkim. Additionally, Deputy Chief Ministers from Bihar, Madhya Pradesh, Odisha, Rajasthan, and Telangana, as well as State Finance Ministers, other Ministers, and Senior Officers from the States and Union Territories (with Legislature) and the Union Government, were present.
Following this, the 53rd meeting of the GST (Goods & Services Tax) Council is scheduled for the same day, with finance ministers from states and UTs also participating as council members.
The GST Council is expected to deliberate on critical issues such as taxes on fertilizers and the chemical inputs used in their production, as well as taxation on online gaming. Discussions may also include the need for an amendment to overrule retrospective tax demands and a possible tax exemption for reinsurance.
Furthermore, the council might consider recommendations from the Standing Committee on Chemicals and Fertilisers to reduce GST on raw materials used in fertilizer manufacturing to address the inverted duty structure. Currently, GST on fertilizers is 5%, while raw materials like Sulphuric Acid and Ammonia are taxed at 18%.
Another topic likely to be discussed is the potential reduction of taxes on the import of maintenance, repair, and operations (MRO) services for foreign airlines in India, which are presently taxed at 18%.
