The 50th GST Council meeting will be held today (11 July) in New Delhi. Union Finance Minister Nirmala Sitharaman will chair the meeting wherein the Group of Ministers (GoM) are likely to discuss taxation on online gaming, casino, and horse racing. Besides online gaming, the Council is also expected to discuss and finalise the constitution of a GST Tribunal and its benches. The Council has been instrumental in deciding key issues related to the GST such as tax rates, exemptions, thresholds, and administrative procedures. So far, the Council has held 49 meetings and its decisions have had a significant impact on the GST implementation in India.
Check all the latest updates on the GST Council meeting at Mint’s LIVE blog:
Proposal to exempt small suppliers making inter-state supplies on e-commerce platforms from GST registration
Think tank Global Trade Research Initiative (GTRI) said small suppliers on e-commerce platforms should be permitted to undertake inter-state supplies without GST registration if their turnover does not exceed the threshold.
The GST Council has exempted small businesses making intra-state supplies through e-commerce platforms from taking GST registration if their turnover is below ₹40 lakh in case of goods and ₹20 lakh in case of services. The rule will kick in from October 1.
Now the GTRI has recommended that similar registration rules should be applicable for inter-state supplies done by micro and small businesses through e-commerce platforms.
Proposal to raise compensation cess on tobacco products
Doctors, economists, and public health groups have urged the Goods and Services Tax Council to increase the compensation cess on all tobacco products in order to generate additional revenue for the government.
They argued that such a step of higher taxation will also motivate millions of tobacco users to quit and prevent youngsters from initiating tobacco use.
According to the global health body, raising the price of tobacco products through tax increases is the most effective policy to reduce tobacco use. Higher tobacco prices that decrease affordability encourage quitting among users, prevent initiation among non-users, and reduce the quantity consumed among continuing users.
The annual economic costs from all diseases and deaths attributable to tobacco use are estimated to be ₹1,77,341 crore in 2017-18 amounting to 1% of India’s GDP.
Tobacco use which is a slow-moving pandemic itself claims the lives of 13 lakh Indians each year.
Key decisions taken in the past
Some of the significant decisions taken by the GST Council are:
- Introduction e-way bills mechanism
- E-invoicing system in GST
- Council reduces the effective rate from 12% to 5% on non-affordable and from 8% to 1% on affordable housing schemes applicable under construction properties
- GST Council slashed rates on all-electric vehicles from 12% to 5%
- The 42nd GST Council approved the Enhancement in the features of the Return filing process and the QRMP scheme was rolled out for small-scale businesses.
- The Council in its 49th meeting has approved the creation of the National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) in principle. The National Bench of the Appellate Tribunal will be situated in New Delhi.
- Introduction of the dynamic QR code on invoices to facilitate digital payment.
- Simplification and auto-population of GST Returns, making compliance easier for taxpayers.
- 226 Items under 28% GST slab reduced to 37 items till now.
What is on agenda?
- GST meeting updates: List of things that will be discussed today are:
- Taxation on online gaming, casino, and horse racing
- Tax exemption on food and beverage, sold inside cinema halls
- Medicines that costs ₹36 lakh may get exempted from tax
- Exempt GST on import of cancer drug Dinutuximab
- Tax exemptions on satellite launch service
- GST could be levied MUVs and SUVs
- Reimbursement of full CGST and 50% IGST in 11 hill states under the ‘scheme for budgetary support’.
Rate rationalization so far
GST Meeting LIVE: According to the GST Council portal, the Group of Ministers (GoM), headed by the Union Finance Minister has rationalised rates of 226 items, that is 226 Items under 28% GST slab reduced to 37 items till now.
Who are the members?
As per Article 279A of the amended Constitution, the GST Council is the joint forum of the Centre and the States that consists of -Union Finance Minister (Chairperson); Union Minister of State, in-charge of Revenue of finance (member), and the Minister In-charge of finance or taxation or any other Minister nominated by each State Government.
50th meeting to be held on Tuesday
Union Finance Minister Nirmala Sitharaman on Tuesday will chair the 50th GST meeting in New Delhi. The 49th meeting of the Council was held on 18 February 2023.
(Author can be reached at info@a2ztaxcorp.com)
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