50th GST Council Meeting Expectations

The 50th meeting of the GST Council was held today, 11th July 2023, at Vigyan Bhawan in New Delhi. The meeting was presided over by the Union Finance Minister, Nirmala Sitharaman, and attended by the Revenue Secretary and the Chairman of the Central Board of Indirect Taxes and Customs (CBIC). The 50th GST council meeting began at 11:00 am and concluded in the evening. The Finance Minister addressed the public later in the evening to announce the decisions taken at the meeting.

The council took some important decisions and specifically focused on 5 areas viz. GST Rates on goods and services, Exemptions, GST Rate Regularizations, Compensation Cess, and GST Appellate Tribunal. Sharing the key highlights from the much awaited council meeting below:

Key Highlights of the 50th GST Council Meeting

GST Rates on Goods

28% GST will be charged on Online Gaming, Casino, Horse racing on Full Face Value Amount, Schedule 3 of GST Act to be amended.
Uncooked, unfried snacks reduced from 18% to 5%
Fish soluble paste reduced from 18% to 5%
Imitation Zari threads reduced from 12% to 5%
LD Slag reduced from 18% to 5%

Other Changes Relating to Goods

Effective from 31st March 2023, the ad valorem rate applicable on pan masala, tobacco products, etc., where retail sale price declaration is not legally required, will be notified for the imposition of Compensation Cess.
To address genuine interpretational issues, it has been decided to regularize matters concerning dessicated coconut for the period from 1.7.2017 to 27.7.2017 on an “as is basis.”
Considering the new Foreign Trade Policy 2023, necessary revisions to notifications will be implemented.
Prior to 01.10.2019, issues concerning GST on plates and cups made of areca leaves will be regularized.
For the period from 01.07.2017 to 12.10.2017, issues regarding GST on biomass briquettes will be regularized.

GST Rates on Services

Taxability on snacks i.e. food and beverages served in cinema halls – decisions have been taken to reduce GST from 18% to 5%.

Other Changes Relating to Services

GTAs are no longer required to file annual declarations for GST payments under forward charge. Once chosen, it applies to subsequent financial years unless they opt for a reverse charge mechanism (RCM).
The deadline for GTAs to exercise the forward charge option is now 31st March of the previous financial year, starting from 1st January.

GST Rate Rationalization

Rates have been regularized on raw cotton, kala cotton. It is a taxable item.

GST Exemptions

The council has exempts cancer-related drugs, medicines for rare diseases and food products for special medical purposes from GST.
Exemptions on satellite launch services provided by private organizations. It has been decided that GST exemption on satellite launch services supplied by ISRO, Antrix Corporation Limited and New Space India Limited (NSIL) may be extended to such services supplied by organisations in private sector also to encourage start ups.

GST Appellate Tribunal

Most states have given suggestions and decisions have been taken on the same. The GST Council has recommended that the Centre notify the GST Appellate Tribunal (GSTAT) with effect from 1 August 2023. The GSTAT will be a specialized tribunal to hear appeals against GST-related decisions.

Watch the detailed update here:

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50th GST Council Meeting Expectations

The Union Finance Minister Nirmala Sitharaman will preside over the 50th GST Council Meeting, which is most likely to take place on July 11th, 2023. The final dates have not been announced yet. However, there are talks about the meeting being held in June as most states would have finished the budget-making process by then.

In the upcoming GST council meeting, the long pending issue of taxing online gambling, horse racing, and casinos is expected to be taken up. During the Covid-19 lockdowns, the internet gaming industry experienced enormous expansion, and this development has persisted ever since. The industry is expected to grow in size from Rs. 13,600 crores in 2021 to Rs. 29,000 crores by 2024–25, according to a KPMG analysis.

At the ministerial level, the council is now looking into issues related to online gaming and also managing its taxation and regulation. “Once the policy certainty arrives, taxation becomes more clear, it will attract investors,” the finance minister said while addressing the Indian diaspora in Seoul recently.

Currently, there is a 28% GST imposed on all actionable claims involving betting and gambling, including those related to online gaming. The GST Act does not differentiate between games of skill and games of chance when determining the levy.

Additionally, the process of setting up the GST Appellate Tribunal would have advanced significantly, and hopefully, the states would be able to propose the establishment of benches in their regions.

Talking about the GST Rate revisions, since the tax system has essentially stabilized, sources state that a significant revision to the GST rates and slabs is unlikely at this time. However, it’s likely that proposals of rate revisions for millets and cement as well as the compensation cess on pan masala could be discussed.

The inverted duty structure (greater duty on raw materials and other inputs and lower duty on final product) has not been given a timetable for correction yet.

You can read the highlights of the 49th GST Council Meeting here. We will update this page with the highlights of the upcoming 50th GST Council Meeting soon. So, stay tuned!

You can find the highlights of the past GST council meetings here –

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