GST Council Meet Today: Online Gaming Tax, Panel Recommendation on Fertilizer Among Other Items on Agenda for 53rd Meeting

GST Council Meet Today: The 53rd meeting of the GST Council will be held today to deliberate on various issues, including taxation on online gaming and the Parliamentary standing committee’s recommendation for lowering tax on fertiliser. The crucial meet ahead of the budget presentation will be chaired by Union Finance Minister Nirmala Sitharaman along with her state counterparts. Discussions are also likely to be held on 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.

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

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.

The GST Council is likely to review 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. Following the council decision, over 70 show cause notices have been issued to online gaming companies for alleged GST evasion of over Rs 1.12 lakh crore during financial years 2022-23 and 2023-24.

(PTI Inputs)