Stories
GST Council: States Oppose Scrapping Arrest Powers and Seek UPI MDR Relief
- •Several states including Jharkhand opposed the proposal to scrap arrest powers under GST laws during the 57th GST Council meeting.
- •States argued that economic offences should be treated similarly to other criminal offences rather than being separated.
- •States raised concerns over the GST burden on merchant discount rate charges for UPI transactions and suggested lowering the rate to 5 percent or offering an exemption.
- •Jharkhand Finance Minister R K Kishore highlighted that changes to the MMDR Act could cause an estimated annual revenue loss of Rs 14,000 crore for the state.
Key Questions Answered
During the 57th GST Council meeting, some states like Jharkhand opposed proposals to scrap arrest powers under GST laws. Additionally, states raised concerns about the GST burden on UPI merchant discount rate charges, suggesting either a rate reduction to 5 percent or a complete exemption for small businesses.
Starting October 15, person-to-merchant UPI transactions exceeding Rs 2,000 will attract a 0.4 percent merchant discount rate with a cap of Rs 300 per transaction, along with an 18 percent GST charged on the MDR.
Jharkhand Finance Minister R K Kishore stated that changes to the Mines and Minerals Development and Regulation Act could cause an estimated annual revenue loss of Rs 14,000 crore for the state. He urged the central government to amend the legislation to minimize this substantial financial impact.
