• Notification Date: 17-12-2022
• Notification No: N/A

GST Council Meeting Today - List of Agendas to be Discussed Are Here

Union Finance Minister Nirmala Sitharaman will chair the 48th GST Council meeting virtually on Saturday. In the meeting, the Federal indirect tax body will be considering a dozen of changes that are necessary for bringing more clarity to tax provisions. According to report, the central and state finance ministers will be clarifying the provisions related to e-invoicing requirement of businesses, treatment of statutory dues under GST law in the case of bankrupt businesses in tribunals, a tax credit for corporate social security related spending and no-claim bonus offered by insurance companies. 

The changes are being considered by the ministers to rationalize legal provisions in the light of experience and jurisprudence evolved so far. Moreover, the GST Council might decide on other issues as well. The decriminalisation of offences under the GST law, and setting up appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha businesses are some of the issues to be discussed in the meeting. 

The Council may also deliberate on online gaming and casinos. Concerning taxation of online gaming, casinos, and horse racing, the Group of Ministers (GoM), in its last meeting in November, had agreed on a 28% GST on these segments. The GoM had decided to refer all suggestions to the GST Council for a final decision as there is an absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants. 

Currently, online gaming attracts 18% GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals. Regarding to decriminalisation of offences, the law committee of the GST Council, comprising tax officers from the Centre and states, has suggested to the Council to increase the monetary threshold for launching prosecution for GST offences. 

The law committee has also suggested that in order to improve the ease of doing business, the fee which is payable by the taxpayer for compounding of GST offences should be minimised to 25% of the tax amount, from up to 150% currently. The committee has suggested raising the threshold of launching prosecution to ₹20 crore from ₹5 crore. Launching of prosecution by taxpayers means the commencement of legal proceedings against the offender.