New Delhi: With the Centre concerned about tax evasion, the GST Council is looking to start levying cess on some commodities like pan masala at the manufacturing stage itself.
The Council is looking at the possibility of levying the cess at the manufacturing stage based on the production capacity as against the current practice of imposing it on supplies made by the manufacturer.
This proposed amendment to the GST (Compensation to States) Act, 2017, would be deliberated upon by the Council later this month.
The compensation cess would be levied on commodities at the presumptive capacity of production declared by a manufacturer to the GST authorities.
It is likely to be broug-ht during the Budget session. This proposed amendment to the Act would be deliberated upon by the council in its meeting.
According to sources, some 40 recommendations of the law review committee were also accepted by the Council last week and amendments will be moved during the second half of the Budget session, after consultations were over.