Ahead of GST Council meet, fitment committee may convene to assess proposals on ATF, natural gas
By: Admin
June 14, 2024
Categories: GST Recent News
4 Min Read
The GST fitment committee to likely to convene ahead of the GST Council meet scheduled for June 22, with the agenda to study Oil Ministry’s proposal to bring ATF and Natural Gas under the ambit of GST, sources told CNBC-TV18.
People familiar with the development said that committee may also issue clarification on claiming Input Tax Credit (ITC) as well as on rationalisation of rates. The fitment committee could study the prospects of bringing ATF under 5 percent GST slab, and will also assess Oil Ministry’s proposal to tax Natural Gas under 12 or 18 percent tax slab, it is learnt.
Sources had told Moneycontrol earlier this month, requesting anonymity, that any rationalisation of the current four GST slabs may not happen soon due to its potential negative impact on lower-income groups.
The 53rd GST Council, which convenes on June 22, could issue clarification on a number of items that have been talking points for past few months, such as foreign airlines and shipping lines under DGGI scanner, as well as ITC on telecom services and spectrum, sources told the network.
The tax department has issued multiple notices to all airlines and shipping lines with parent companies outside India, regarding non-payment of GST on import of services. Foreign airlines, including Finnair, KLM Royal Dutch Airlines, Qatar Airways, Virgin Atlantic, Etihad, Emirates, Saudi Airlines, Air Arabia, Oman Air, Kuwait Airways, and British Airways, as well as various shipping lines, have received these GST notices.
The council is likely to also discuss measures to improve Ease of Doing Business, especially for global companies having branch offices in India, and also address the inverted duty structure under the GST regime. Moneycontrol had reported that the government is working on easing the ‘related party transaction’ clause for foreign companies in India, which could happen within 100 days after the elections. The measure will exempt airlines and shipping lines from paying GST at the time of import of services, but can pay at the time of disbursal of services, a senior government official had informed Moneycontrol in April.
One measure that had gathering a lot of attention was the demand for a review of GST on online gaming, and CNBC-TV18 learns that the council may take this up on June 22. Online gaming companies have been reeling under a slew of retrospective tax notices since September 2022, with Gameskraft, Delta Corp and others receiving notices to pay Rs 1.12 lakh crore, at 28 percent on the face value of bets. The gaming industry has been seeking to have GST calculated on the gross gaming revenue instead of the face value of bets.
Moneycontrol had reported earlier in April 2024, citing officials, that review of GST on online gaming may not be discussed by the GST Council’s fitment committee but could be brought directly before the Council for review.
This would be the first Council meeting after 2024 Lok Sabha elections. The last time GST Council had convened was on October 7, 2023. A roadmap to further simplify rules and enhance tax compliance may also be considered.
The gross GST collections for the first two months of FY25 currently stands at Rs 3.83 lakh crore, representing an 11.3 percent year-on-year growth.
Source from: https://www.moneycontrol.com/news/business/gst-fitment-committee-council-meet-12747358.html