FM to hold media briefing on GST council meeting outcomes

The Finance Ministry tweeted saying that Finance Minister Nirmala Sitharaman will hold a media briefing on the outcomes of the 50th GST Council meeting in National Media Centre, New Delhi, TODAY.

The media briefing will begin at 7.15 pm (tentative).

Here's where you can watch the press conference:

Drawback for online gaming companies

The GST council will levy 28% GST on full value of gaming , horse racing, casinos. Further, the West Bengal GST Council Representative said that the council decided to make an amendment as these are actionable claims.

This comes as a drawback for online gaming companies.

PTI reported, GST Council clears 28 per cent tax on online gaming on full face value amount, said West Bengal finance minister.

What budgetary support GST Council is likely to discuss in the meeting?

As per Vikas Jain at Reliance Securities, budgetary support for hilly states and cess on multi utility vehicles are likely to be taken up by the high-powered Council.

Clarification on Corporate Guarantees or Director's Personal Guarantees? 

Among many recommendations, ASSOCHAM also expects clarification stating that Corporate Guarantees or Director's Personal Guarantees. 

As per the chambers, it sought clarification stating that Corporate Guarantees or Director's Personal Guarantees issued for borrowing or letter of comfort for performance for group companies, should not be liable to GST. It said a transaction of corporate guarantee does not benefit the guarantor in any manner, but is only an act of safeguarding the interest of the group as a whole akin to a shareholder function. Hence, deeming such transactions as deemed supply and levying them to GST would result in a scenario where every act between related parties, though without consideration, would be liable to GST.

ESOPs to be kept out of GST?

Accoring to ASSOCHAM, he Employee Stock Options (ESOPs) are key incentives to promote and retain talents in the corporates, especially amongst the start-ups. Thus,the ESOPs should be kept out of the GST dispensation as these are '' in nature of securities".

What IPO market expects from  GST council meet? 

While the 50th meeting of GST council continues, ASSOCHAM on Monday made a strong case for making GST paid on expenses on the Initial Public Offerings (IPOs) eligible for input tax credit ,stating such an option is permissible under the GST Act.

'' GST paid on expenses towards IPOs are eligible for input tax credit, being expenses used in the course or furtherance of business,'' the chamber said in a comprehensive note submitted to the GST Council. It said a circular to this effect should be issued.

Further, ASSOCHAM Secretary General Deepak Sood said, ''IPOs have played a major role in raising equity capital for the companies , strengthening their balance sheets in the process. We would urge upon the GST Council to encourage companies to tap a vibrant capital market for expansion of their businesses and deleverage themselves''.

The apex industry organisation, after wider consultations with the stakeholders, said ''The only provision which will be applicable to ITC on goods and services used for IPOs shall be Section 16(1) of the CGST Act, 2017. This section permits companies to take ITC on goods and services used in or intended to be used in the course or furtherance of business''.

GST Council 50th meet: Special cover and myStamp customized

Finance Minister releases a Special Cover and customized myStamp on the occasion of 50th GST council meeting. The outcomes of the meeting is yet to be announced. 

Over 2 crore ITRs filed as of now for AY 2023-24

While 50th GST council meeting continues, the Income Tax department tweeted saying that over 2 crore Income Tax Returns (ITRs) for AY 2023-24 have already been filed till 11th of July this year as compared to 2 crore ITRs filed till 20th of July last year.

The department said, "Our taxpayers have helped us reach the 2 crore milestone 9 days early this year, compared to the corresponding period in the preceding year, and we appreciate the effort!"

Issue related to ED sharing info of GSTN to be discussed

As per a PTI report, several opposition ruled states expressed concern over Centre's decision to allow enforcement directorate (ED) to share information with GST Network, with finance minister of AAP-ruled Punjab Harpal Singh Cheema on Tuesday saying it amounts to 'tax terrorism' and scaring small business.

Delhi finance minister Atishi told reporters that a lot of ministers raised the issue including Delhi, Punjab, West Bengal, Tamil Nadu, Himachal Pradesh, Karnataka, Chhattisgarh, Telangana, and Rajasthan. Hence, he said, this issue should be discussed in the GST council.

Earlier, FinMin introduced an amendment to the provisions of Prevention of Money Laundering Act (PMLA), 2002, under which ED will share information of GSTN which handles the technology backbone of GST, is included in the list.

Who is attending the 50th GST council meet 

Apart from FM Nirmala Sitharaman, the 50th meeting of GST council is also attended by MoS(F) Pankaj Chaudhary, FMs of States and UTs, RS Sanjay Malhotra, Chairman CBIC Vivek Johri, Board Members & senior officers from DoR, CBIC, State/UTs, GSTPW & GSTN.

GST Council meeting: 28% GST on online gaming, casinos, horse racing likely

The Group of Ministers have agreed that 28% of GST should be levied on online gaming, horse racing and casinos. however, a final view on taxation rate as well as whether tax is to be levied on gross gaming revenue (GGR) or fees charged by the platform; or on the full face value of bets put in by players of online gaming, horse racing and casinos would be taken today.

Six years of GST: ₹1.5 trillion GST revenue becomes 'new normal'

Six years after the rollout of the biggest indirect tax reform in India, Goods and Services Tax (GST) revenue of ₹1.5 lakh crore every month has become a new normal and tax officers are focusing on dealing with fraudsters who are adopting newer modus operandi to game the system, causing loss to the exchequer.

GST Council likely to define MUVs and XUVs for levy of 22% cess

The GST Council is likely to clarify the definition of multi-utility vehicles (MUVs) and crossover utility vehicles (XUVs) for a levy of 22% compensation cess over and above the 28% GST rate.

The Council is expected to clarify the issue on Tuesday.

GST Council meeting LIVE: Toy manufacturers seeks urgent roll-out of PLI scheme

Toy manufacturers have urged the government for the immediate roll-out of the production linked incentive scheme to boost the growth of the sector. Besides, they have also asked the Centre to resolve a GST (Goods and Services Tax) anomaly.

"Mechanical toys attract a 12 per cent GST, and the tax on electronics toys is 18 per cent, "so if we add merely some light or music in a mechanical toy, that toy is classified as electronic toys. This is an anomaly and we have urged for its removal," Toy Association of India Chairman Manu Gupta said.

'Levying GST on contest Entry Amount will disrupt sector': Fantasy Sports industry body

Ahead of the 50th GST Council Meeting, Joy Bhattacharjya, Director General at Federation of Indian Fantasy Sports (FIFS) told Mint, "We hope that the GST council will adopt a rational and forward-thinking approach. The GST Council should consider the recent regulatory developments before making any final decision. Established legal precedents and regulatory framework provide a solid foundation for a fair and comprehensive taxation framework. Levying GST on Contest Entry Amount will severely disrupt the sector, hindering capital inflow, impact growth and lead users to illegitimate, offshore platforms. Adverse taxation can also disproportionately impact start-ups, potentially leading to their closure".

With GST being linked to ED, traders paying tax could also be arrested: Delhi CM Kejriwal

Delhi Chief Minister Arvind Kejriwal alleged on Tuesday that with the Goods and Services Tax (GST) being linked with the Enforcement Directorate (ED), even those traders paying the tax can be arrested by the federal agency.

Kejriwal hoped that people would oppose this development at the GST Council meeting on Tuesday.

The government has amended the provisions of the money-laundering law to allow the ED to share information with the GST network. The move would help in the recovery of the GST evaded through money laundering.

"A large proportion of traders do not pay GST -- some out of compulsion, some intentionally. A few days ago, the Centre also brought the GST within the purview of the ED. It means that now, if a businessman does not pay the GST, the ED will arrest him directly and bail will not be granted," Kejriwal alleged in a tweet in Hindi.

GSTN handles the technology backbone of the indirect-tax regime and is the repository of all GST-related information, including return, tax filing and other compliances.

'Increased GST is a deterrent,' says professional gamer

"Online gaming is a profession for some of us, an increased GST is a deterrent. Our investments in buying equipment also doesn't give us any input credit, and now the proposed regime seems harsh." Zerah is a professional gamer and CEO of Lxg

'Gamers must not be taxed the same way as gamblers': EPWA director

Ahead of the GST Council meeting, eSports Players Welfare Association (EPWA) director and Tech Policy lawyer Shivani Jha said, "Gamers must not be taxed the same way as Gamblers". The statement has come as the GST Council is likely to discuss the recommendations of a group of state finance ministers regarding the levy of 28% tax on online gaming, casinos, and horse racing on Tuesday.

Shivani added, "We hope that the council of ministers will take equitable steps to ensure an increased GST doesn't discourage players from playing altogether".

GST Council meeting: Tax exemption on cancer drug import likely

The GST Council is likely to exempt cancer medicine Dinutuximab imported by individuals from tax. Besides, the import of medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases for personal use and also by centres of excellence are likely to be exempted from Integrated GST. Currently, such imports attract an IGST of 5% or 12%.

GST Council may implement stringent rules on registration

In a bid to check fake registration, the GST Council is likely to reduce the period to 30 days, from 45 days currently, for submission of PAN-linked bank account details of the person seeking registration with tax authorities.

The Council is likely to provide for mandatory physical verification of the business premises of "high-risk" applicants before granting GST registration.

At present, the GST officers are undertaking a special drive to catch fake registration. During the drive so far, 17,000 GSTINs were found to be non-existent. Of this, 11,015 GSTINs have been suspended and 4,972 have been cancelled, while ₹15,000 crore tax evasion has been detected.

New GST rules on anvil; businesses may have to explain discrepancy in ITC claims

The GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer.

The Committee has suggested that the provision should kick in if the difference is more than 20% and more than ₹25 lakh.

Currently, businesses use taxes paid by their suppliers commonly referred to as ITC to offset their GST liability while paying taxes in GSTR-3B.

In cases where the difference in tax liability declared in GSTR-1 and GSTR-3B exceeds the specified threshold of ₹25 lakh and 20%, the businesses are required to explain the reason for discrepancy or deposit the taxes.

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.

GST meeting LIVE: 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.

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GST Council meeting: 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.

GST Council meeting: 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.

GST Council meeting LIVE: 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.

GST Council meeting LIVE: 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.