53rd GST Council Meeting To Deliberate On These Key Issues; Check Expected Agenda Here

The GST Council, in its meeting on Saturday, is likely to deliberate on various issues, including taxation on online gaming and the Parliamentary standing committee’s recommendation for lowering tax on fertiliser.

The 53rd meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising her state counterparts, is also likely to discuss the progress of the Group of Ministers (GoM) on finalising the report on Goods and Service Tax (GST) rate rationalisation and amendments to GST laws based on previous decisions of the council, news agency PTI reported.

The council may also discuss the recommendations made by the Standing Committee on Chemicals and Fertilisers in February to reduce GST on nutrients and raw materials in the interest of fertiliser manufacturing companies and farmers.

Currently, GST at a 5 per cent rate is charged on fertilisers, while raw materials like Sulphuric Acid and Ammonia face a higher GST at 18 per cent.

The issue of further reduce tax on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, though the council did not recommend any change in rates.

Saturday’s Council meeting will be held after a gap of eight months. The 52nd GST Council meeting took place on October 7, 2023.

About the online gaming sector, the council is likely to review the decision to levy 28 per cent GST on the full value of bets for online gaming companies, which came into effect on October 1, 2023.

Ranjeet Mahtani, partner, Dhruva Advisors, said, “The plate is full and expectations are that the Council will take up the issues of: rate structure overhauling and rate rationalization on an overall basis, plug the concerns in respect of inverted duty structure (pharmaceuticals, textiles etc.), provide further clarifications on the newly introduced GST on corporate guarantee.”

Mahtani added, “A part of the wish list is that the GST Council provides definitive guidance on multiplicity of proceedings by different tax authorities in the GST regime – this has become a bane for industry and is somewhat allayed by the Circular of 30.03.2024. The online gaming sector, which is reeling under the severe impact of modification of the GST rate, anticipates the now delayed review of the sector will be taken up.”

In its meetings in July and August, the GST Council had approved amendments to the law to include online gaming, casinos and horse racing as taxable actionable claims, and clarified that such supplies would attract a 28 per cent tax on full bet value.

At that time, it was said that a review of the implementation would be carried out after six months.

The GST Council is likely to review the decision to levy 28 per cent GST on the full value of bets for online gaming companies that came into effect on October 1, 2023.