The Goods and Services Tax (GST) Council meeting on Friday is likely to be a stormy affair, with some states opposing the Centre’s proposal to cut tax on automobiles, citing revenue shortfalls and previous instances of businesses failing to pass on tax cuts to consumers. The opposition from states, which are members of the federal indirect tax body, may make it tougher for the Union government to quickly respond to industry demands for tax cuts on automobiles to help reverse the worst sales slump in more than two decades. Union finance minister Nirmala Sitharaman said earlier this month that a proposal for a tax cut on automobiles would be taken up by the GST Council.
Source: a2ztaxcorp.com
