by GST Council Meeting: The GST Council, the apex body for GST-related matters, is expected to discuss various issues at its meeting on Saturday, including the Parliamentary Committee’s recommendation on taxation of online gaming and tax reduction on fertilisers. The meeting is also likely to discuss the progress of the ‘Group of Ministers’ (GoM) constituted to rationalize the Goods and Services Tax (GST) rates based on the earlier decisions of the Council and finalize the report on amendments to the GST law.
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These issues will also be discussed
The Council is also likely to discuss recommendations made by the Parliamentary Standing Committee on Chemicals and Fertilizers in February to reduce GST on nutrients and raw materials in the interest of fertilizer companies and farmers. Currently, fertilizers attract GST at the rate of 5 per cent, while raw materials such as sulfuric acid and ammonia attract GST at the rate of 18 per cent. The Council may review the decision to levy 28 per cent GST on the entire value of bets for online gaming companies. This decision has come into effect from October 1, 2023. In its July and August meetings, the council approved amendments to the law to include online gaming, casinos and horse racing as taxable claims.
Allegations of GST evasion
Following this decision, more than 70 notices have been issued to online gaming companies for alleged GST evasion of over Rs 1.12 lakh crore during the financial years 2022-23 and 2023-24. Many of these companies have gone to court against the notice.
In respect of corporate guarantees, the Council may also review the decision to levy 18 per cent GST on guarantees given by companies to their subsidiaries. Further, the GST Council may fix a time limit for submission of report to GoM on rationalization of rates. The GoM has been reconstituted twice in the last one year and is now headed by Bihar Deputy Chief Minister Samrat Chaudhary.
GST on spectrum charges
The GST Council may clarify that telecom companies will have to pay GST along with installments paid for spectrum charges. Currently, there are five tax slabs under the GST system with rates of zero, five, 12, 18 and 28 percent. In addition to the rate of 28 percent, a cess is also levied on luxury goods.
The meeting is being held after eight months
Let us tell you that the finance ministers of the states and Union Territories will also participate in this meeting to be held under the chairmanship of Union Finance Minister Nirmala Sitharaman. This meeting is taking place after a gap of eight months. The last meeting of the GST Council was held on October 7, 2023.
