What's New in the Latest GST Council Meeting: Key Topics and Updates

The 48th meeting of the Goods and Services Tax (GST) Council convened on December 17, 2022, in New Delhi. The meeting was chaired by Finance Minister Nirmala Sitharaman, and it brought together the Union Finance Minister, Union Ministers of State for Finance, Finance Ministers of various states and Union territories (UTs), and senior officers from both the Union Government and states.

Key Discussions and Initiatives

The GST Council typically reviews and revises tax rates, rules, and regulations under the Goods and Services Tax (GST) to maintain a uniform tax structure across the country. During this latest meeting, the Council is expected to deliberate on a range of important issues, including:

Decriminalisation of Offences

The council may proceed with the decriminalisation of offences under the GST regime. This involves increasing the monetary threshold for initiating legal proceedings against offenders from the current 5 crore to 20 crore. Additionally, the fee payable by taxpayers for compounding of GST offences is set to be reduced to 25% of the tax amount, which is currently as high as 150%.

Tax Evasion in the Tobacco Industry

The council will examine a report on tax evasion by the tobacco industry, including pan masala and gutka. The meeting aims to develop a possible mechanism to address and prevent tax evasion in the sector.

GST on Online Gaming

A significant proposal to be deliberated upon is to increase the GST rate on online gaming, including casinos and horse racing, from the current 18% to 28%. This decision is a result of recommendations from the Group of Ministers (GoM).

Setting Up GST Appellate Tribunals (GSTATs)

The council is also considering the establishment of GST Appellate Tribunals (GSTATs). These tribunals will have a retired Supreme Court judge as their President, along with two judicial members and technical members from both the Centre and states. This move is aimed at providing a nuanced and fair appeal mechanism for taxpayers.

Rate Applicability

The GST Council may also provide clarity on the applicability of GST rates on specific goods and services, ensuring that these rates are uniformly applied across the nation.

These discussions and proposals illustrate the continuous efforts by the GST Council to refine and enhance the tax structure, ensuring transparency, fairness, and compliance for both taxpayers and the government.

Final Thoughts

The ongoing meetings of the GST Council are vital for maintaining a stable and fair tax system in India. These meetings reflect the commitment of the government to the welfare of the economy and the citizens. By addressing issues like decriminalisation of offences, reducing evasion, and enhancing clarity on tax rates, the council is working towards a more robust and beneficial GST regime.