GST Council Meeting- It is expected that many important issues can be discussed in today’s GST meeting with the aim of streamlining the GST structure, increasing compliance and resolving the concerns of the industry.
The 53rd meeting of the Goods and Services Tax (GST) Council will be held today under the chairmanship of Finance Minister Nirmala Sitharaman. This is the first GST Council meeting in the third term of the NDA government. Many important issues related to GST can be discussed and decided in this meeting. The last meeting of the GST Council was held eight months ago. In that meeting, many important decisions were taken including imposing 28% GST on online gaming, casinos and horse racing, 5% on all types of zari items and 18% GST on extra neutral alcohol used in industrial purposes.
It is expected that many important issues can be discussed in today’s GST meeting with the aim of streamlining the GST structure, increasing compliance and resolving the concerns of the industry. Just a day after Nirmala Sitharaman formally took charge as the Union Minister of Finance and Corporate Affairs, the GST Council announced the date of the 53rd GST Council meeting.
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GST exemption can be given on fertilizers
A big decision can be taken regarding fertilizers in the GST Council meeting. Fertilizers can be excluded from the scope of GST. At present, 5 percent GST is levied on fertilizers. Whereas 18 percent GST is levied on raw materials like sulfuric acid and ammonia. The issue of reducing tax on fertilizers was raised in the 45th and 47th meetings held in September 2021 and June 2022.
Online gaming tax may be reviewed
The decision of imposing 28 percent tax on online gaming may also be reviewed in the GST Council meeting. The Council had decided to impose 28 percent GST on online gaming, horse racing and casinos in its 52nd meeting in October 2023.
Discussion on bringing petroleum products under the ambit of GST
At present, products like petrol, diesel, jet fuel and natural gas are outside the ambit of GST. There is a demand from time to time to include them in GST. In the 53rd meeting of the GST Council, there may be a discussion on bringing petroleum products under the ambit of GST.
Clarity on corporate guarantees
The industry is hoping that the Council will bring more clarity on the tax conditions and valuation of corporate guarantees and ESOPs given to employees. In the last GST Council meeting, it was decided that 18 per cent GST will be levied on the guarantee given by the parent company up to 1 per cent of the amount or the actual consideration, whichever is higher.
There may be a discussion on rationalizing GST rates.
In the meeting, there may be a discussion on finalizing the report of the group of ministers constituted to rationalize GST rates. Apart from this, there may be a discussion on imposing tax on spectrum fees paid by telecom companies.
