Kerala favoured a dual rate for the two kinds of lotteries. Isaac had said if it came to a uniform rate, then the rate for private lotteries should not be lowered to 18 per cent, but the rate for government-run lotteries be raised to 28 per cent.
The five-hour-long meeting of the Council also decided to block the input tax credit (ITC) for fake invoices in certain cases and further restrict the credit for invoices not uploaded in relevant forms to 10 per cent from the current 20 per cent of the eligible credit.
“To check the menace of fake invoices, suitable action will be taken for blocking fraudulently availed ITC in certain cases," Revenue Secretary A B Pandey said.
However, no decision was taken on changing GST
rates with the officers’ committee on revenue augmentation only presenting an account of the tax collected.
"The committee did not directly or indirectly give any suggestions on increasing or reducing GST
rates. It was a matter of fact presentation of data and data alone," said Sitharaman.
M S Mani, partner at Deloitte India, said the focus on revenue augmentation measures could lead to several anti-evasion measures in the coming months as the decision to block ITC in cases of fake invoices indicated.
She also reiterated the Centre's commitment to pay compensation to the states in case they did not clock 14 per cent growth in GST revenues on the base year of 2015-16, even as some states expressed fears about the Union government's ability to do so.
Besides lotteries, the Council decided to exempt the upfront amount payable for long-term lease of industrial or financial infrastructure plots by an entity in which the Centre or state governments have at least 20 per cent ownership. This exemption is currently available to those where the governments have at least 50 per cent stake. This would promote setting up of industrial and financial parks, said Pandey.