The Goods and Services Tax (GST) Council is gearing up for its next meeting on October 7, where several critical issues are expected to be deliberated. These include the potential tax exemption for millets, the review of the 28% levy on online gaming, horse racing, and casinos, and the progress in setting up GST Appellate Tribunals.
One of the significant topics on the agenda is the potential exemption of millet-based food products from the GST. This move holds significance, aligning with the government’s efforts to promote millets as a healthier dietary choice. The decision, if approved, could have a positive impact on the affordability and accessibility of millet-based foods.
Another item under scrutiny is the GST rate applied to electric vehicle batteries, currently set at 18%. The Council is expected to consider whether any changes are necessary in this regard.
The establishment of GST Appellate Tribunals is also on the Council’s radar. While the government announced the formation of 31 Appellate Tribunals across various states and Union Territories last month, certain procedural matters, including the terms of reference for appointments, remain pending. The timely operation of these tribunals is crucial to address the increasing number of GST-related appeals. In recent years, the number of appeals has surged, with over 11,899 cases recorded in 2022-23, up from 5,499 in 2020-21, according to the Confederation of Indian Industry (CII).
A contentious issue expected to be discussed is the imposition of a 28% GST on online gaming, horse racing, and casinos. While the Central government has notified the implementation of this levy starting from October 1, challenges remain due to certain states not passing enabling legislations or promulgating ordinances. This has created uncertainty in the industry, which seeks clarification on the matter.
Sanjay Chhabria, Director of Indirect Tax at Nexdigm, highlighted the need for simultaneous tax levy by both the Centre and states. Given the current situation where the Centre’s amendments to GST legislation have come into effect while the corresponding changes to state and Union Territory GST legislations are pending, there may be challenges for taxpayers. Chhabria suggested that the GST Council consider a temporary suspension of implementation while urging member states to expedite the necessary amendments.
The All India Gaming Federation has also raised concerns and requested a deferment of the notifications related to online gaming taxes from the finance ministry.
As the GST Council convenes, these key issues will be discussed and decisions made, impacting various sectors and industries in India.
