FM Sitharaman to chair 53rd GST Council meeting: 6 key expectations
FM Sitharaman to chair 53rd GST Council meeting: 6 key expectations
Union finance minister Nirmala Sitharaman will chair the 53rd meeting of the GST (Goods & Services Tax) Council on Saturday, her first in the new term of the Modi 3.0 government.
The GST Council is likely to deliberate on key issues, including taxation on online gaming, an amendment to overrule retrospective tax demands and reviewing a possible exemption for reinsurance.
The GST Council include finance ministers of all states and Union Territories.
Here are the key expectations for the GST Council meeting on June 22:
28% GST on Online Gaming: Moneycontrol had reported earlier that the council is unlikely to review the contentious 28% tax on online gaming, sticking to its earlier stance. This decision comes amid debates over the potential impact on the burgeoning online gaming industry and concerns about distinguishing games of skill from games of chance.
Amendment to Overrule Retrospective GST Demands: The council will discuss an amendment aimed at nullifying retrospective GST demands. This proposed change intends to provide clarity and relief to businesses facing past tax demands, ensuring a more predictable and stable tax environment.
Relief for reinsurers: The council is expected to discuss providing relief for reinsurers by addressing the issue of taxing reinsurance services. Reinsurance is a practice in which an insurance company transfers a portion of its risk to another insurance company, called a reinsurer, in exchange for a premium. In essence, it's insurance for insurers.
GST relief on fertiliser companies: 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. Presently, 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.
Tax Relief for Foreign Airlines: Tax relief on the import of maintenance, repair and operations (MRO) services for foreign airlines in India is also on the anvil. The tax rate is currently at 18 percent.
Fuel Inclusion in GST: The inclusion of fuel under the GST regime is not on the agenda for this meeting. Despite long-standing demands, the council will not be deliberating on bringing petrol, diesel, and other fuels under the GST ambit. "All the states have to agree for the inclusion. It’s an uphill task. At the moment there is no proposal that was discussed by the GST’s fitment committee,” an official told Moneycontrol earlier.