Relaxation in GST rate of online gaming likely, tax will be removed from fertilizer!

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The GST Council is likely to discuss several important issues in its meeting on Saturday. This includes the big issue of taxes on online gaming. Currently 28 percent GST is levied on online gaming. It is being said that it may be reviewed in the meeting.

The meeting is being held after eight months

The 53rd meeting of the GST Council will be chaired by Union Finance Minister Nirmala Sitharaman. This council consists of the finance ministers of the states. The meeting is also likely to discuss the progress made in finalizing the Group of Ministers (GoM) report on rationalization of GST rates. This meeting of GST Council is meeting after a gap of eight months. Earlier, the 52nd meeting of the GST Council was held on October 7, 2023.

GST may be removed from fertilizers

A decision to remove GST from fertilizer may be taken in this meeting. The committee formed in this regard has proposed to exempt fertilizers from GST. Its recommendation has been sent to the government. At present five percent GST is levied on fertilizer. The industries associated with it are demanding its complete removal.

28 percent GST is charged

The GST Council may review the decision to levy 28 percent GST on the entire value of bets for online gaming companies. This decision has come into effect from October 1, 2023. The GST Council, in its meetings in July and August, approved amendments to the law to include online gaming, casinos and horse racing as taxable claims. It was also clarified that a tax of 28 percent would be levied on the full value of the bet. It was then said that the decision would be reviewed after six months of implementation.

What do gaming companies want?

Online gaming companies are demanding 28 percent GST on gross gaming revenue (GGR) instead of the full value of bets. Gross gaming revenue is the difference between the total amount and the amount won. Those connected to the gaming industry hope that the review meeting may bring some relief.

Advocating for rationalization of GST rates

A large number of top management level officials in the country have a positive perception of GST. This fact has been revealed in Deloitte’s survey. Many of these officials have advocated rationalization of tax rates and effective dispute resolution system under GST 2.0.

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These officers are associated with various industry sectors. It has mentioned those things, which show the growing confidence in GST. 84 percent of the surveyed officials expressed positive opinion about GST in 2024. This number was 72 percent in 2023 and 59 percent in 2022.

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