Apart from fertilizers and online games, other issues can be intensively discussed at the GST Council meeting.
The first meeting of the year of the GST Council will be held on Saturday i.e. today. In which various topics are expected to be debated, including the taxation of online games and the parliamentary committee’s recommendation on reducing the tax on fertilizers. Finance ministers of states and union territories will also participate in this meeting which will be chaired by Union Finance Minister Nirmala Sitharaman. This meeting is held after a period 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 finalize the report on rationalization of the Goods and Services Tax (GST) rate and amendments to the GST laws based on the Council’s previous decisions. it’s a posibility. If experts are to be believed, this meeting is considered very important before the government presents the full budget.
There will be discussion about the fertilizer tax
The Council may also discuss the 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 are subject to GST at a rate of five per cent, while raw materials such as sulfuric acid and ammonia are taxed at a higher rate of 18 per cent.
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There will be debate about online gambling
The council may review the decision to impose 28 per cent GST on the total value of bets for online gaming companies. This decision came into effect on October 1, 2023. At its meetings in July and August, the GST Council approved amendments to the law to include online gaming, casinos and horse racing as taxable duties. Following this decision, over 70 notices were issued to online gaming companies accused of GST evasion of over Rs 1.12 lakh crore during financial years 2022-23 and 2023-24. Many of these companies have gone to court against the notice.
There will also be a review on this.
Regarding corporate guarantees, the Council may also review its decision to impose 18 per cent GST on guarantees given by companies to their subsidiaries. Apart from this, the GST Council may set a time limit for submitting the report to the GOM on rationalization of rates. The GOM has been reconstituted twice in the last year and is now headed by Bihar Deputy Chief Minister Samrat Chaudhary.
discussion on spectrum charges
According to sources, the GST Council may clarify that telecom companies will have to pay GST along with the dues paid on spectrum charges. Currently, there are five tax brackets under the GST system with rates of zero, five, 12, 18 and 28 per cent. In addition to the 28 percent rate, a luxury goods tax is also imposed.
