GST Council Meeting Updates: Today’s meeting of the GST Council, the apex body for GST-related matters, is expected to discuss various issues, including the recommendation of a parliamentary committee to reduce tax on online gaming and reduce tax on fertilizers. The meeting will be chaired by Union Finance Minister Nirmala Sitharaman and will be attended by the Finance Ministers of States and Union Territories. This meeting is taking place after a gap of eight months. The last meeting of the GST Council was held on October 7, 2023.
The meeting is also likely to discuss the progress of the Group of Ministers (GoM) constituted to rationalize the Goods and Services Tax (GST) rate based on the earlier decisions of the Council and finalize the report on the amendments to the GST law. is likely.
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GST will be reduced on fertilizer!
The Council may also 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 five per cent, while raw materials such as sulfuric acid and ammonia attract a higher rate of 18 per cent.
Will online gaming companies get relief?
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. The GST Council in its July and August meetings approved amendments to the law to include online gaming, casinos and horse racing as taxable claims.
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. With regard to 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. According to sources, 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.