GST Council meet on June 22 may take up amnesty scheme, exemptions for shipping, airlines & Budget
By: Admin
June 15, 2024
Categories: GST Recent News
4 Min Read
Even as the online gaming companies are hoping for a review of the 28% goods and services tax (GST) on the sector, the upcoming meeting of the GST Council is likely to take up a plethora of issues including an amnesty scheme to clear up litigations, exemption to foreign shipping lines and airlines as well as pre-Budget discussions.
“Typically, a meeting of the GST Council takes place before the Union Budget to have a discussion with states on their concerns and requirements,” noted a person familiar with the development, adding that the upcoming meeting will also focus on this.
According to sources, the GST Council in its meeting on June 22, is unlikely to reduce the 28% tax on online gaming on actionable claims but could provide certain clarifications around it.
A decision around rate rationalisation may also not be taken up at present and the Group of Ministers is yet to finalise its report on the issue.
This is the first meeting of the GST Council since October 7 last year and expectations are that it will clarify the tax position on several issues. The agenda for the meeting is yet to be finalised.
A major issue around the amnesty scheme for GST could also be taken up when the Council meets and the rate of pre deposit of the tax could be lowered to 7.5%.
“Businesses are urging the GST Council to prioritise an amnesty scheme to clear tax disputes arising from the GST implementation. Delays in such a scheme are causing a backlog of litigation,” noted Saurabh Agarwal, Tax Partner, EY, adding that this long-awaited amnesty would provide a chance for businesses to settle past tax issues without heavy penalties, reducing the burden of court cases. “While legislative changes are needed, the GST Council should address this as a critical agenda item,” he said.
The Council is also likely to clarify the GST treatment on foreign airlines and shipping lines, an issue due to which many of them have received tax notices from the Directorate General of GST Intelligence. The DGGI has been of the view that several services are imported from the parent office by the local entity on which GST has not been paid.
Source from: https://www.businesstoday.in/union-budget/story/gst-council-meet-on-june-22-may-take-up-amnesty-scheme-exemptions-for-shipping-airline-budget-433298-2024-06-14