Union Finance Minister will chair the 48th GST Council meeting
The 48th GST Council meeting will happen today virtually. Smt Nirmala Sitharaman, the Union Finance Minister, will chair the meeting, and the Finance Ministers of the states/Union Territories are expected to attend. The Federal indirect tax body may consider over a dozen of changes to bring clarity to tax provisions.
GST on online gaming and casinos. Concerning taxation of online gaming, casinos, and horse racing, the Group of Ministers (GoM), in its last meeting in November, had agreed on a 28% GST on these segments.
However, in absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants, the GoM had decided to refer all suggestions to the GST Council for a final decision.
Currently, online gaming attracts 18% GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals. The panel of state ministers headed by Meghalaya Chief Minister Conrad Sangma had met in November and agreed on a 28 per cent GST on online gaming, casinos, and horse racing as per news ad media
With regard to decriminalisation of offences, the law committee of the GST Council, comprising tax officers from the Centre and states, has suggested to the Council to increase the monetary threshold for launching prosecution for GST offences.
The GST Council might decide on other issues as well such as the decriminalisation of offences under the GST law, and setting up appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha businesses.
As per news and media , The law committee has also suggested that the fee payable by the taxpayer for compounding of GST offences be lowered to 25% of the tax amount, from up to 150% currently, to improve the ease of doing business.
It has suggested raising the threshold of launching prosecution to ₹20 crore, from ₹5 crore at present. Launching of prosecution by taxmen means the commencement of legal proceedings against the offender.
48th GST Council meeting Agenda
The following is the list of items on the 48th GST Council meeting agenda, scheduled to take place on 17th December 2022-
- Certain offences under the GST law are set to be decriminalised.
- GST on online gaming, casinos, gambling, and horse races is to be decided as the GoM fails to reach a consensus as per the second report submitted to the Union FM on 16th December 2022.
- Changing the GST valuation rules for GST on tobacco to capacity based.
- Setting up of GST appellate tribunal in 2023 and its powers.
- Defining the scope of power of CCI acting as the Anti-profiteering Authority.
- Applicability of the special composition scheme for selling brick kilns with 6% as GST levy without the input tax credit. Also, there may be a levy of 12% GST with an input tax credit if the business does not opt for the scheme.
- GST rate on health insurance may be reduced from 18% to 12%.
- The GST levy on Mentha may come under the reverse charge mechanism at the first stage of supply.
- GST rate panel may clarify tax-related issues. SUV category of vehicles with an engine capacity of 1,500 cc, a ground capacity of more than 170 mm and a length of more than 4,000 mm could be levied a 22% compensation cess.
- Carbonated fruit pulp/juice-based drinks may be levied a 28% GST.
- Exemptions may be granted for incentives paid to banks for RuPay debit cards and BHIM-UPI transactions and viability gap funding subsidies payments made to airlines for the regional connectivity scheme.