GST Council meeting may focus on procedural, compliance issues
By: Admin
June 21, 2024
Categories: GST Recent News
4 Min Read
The upcoming meeting of the Goods and Services Tax Council is likely to focus on procedural issues and clarifications as well as pre-Budget discussions. Major decisions such as the review of the 28% tax on online gaming may be taken at a later date.
The 53rd meeting of the Goods and Services Tax Council chaired by Union Finance Minister Nirmala Sitharaman is set to take place on Saturday and comes just ahead of the Union Budget next month. According to sources, the meeting will feature discussions on provisions in the GST law that may require any amendments and which can be passed along with the Finance Act.
The Union finance minister, who is holding pre-Budget discussions with stakeholders, is also expected to seek inputs from state finance ministers. Issues around tax exemption to fertilisers, GST treatment on extra neutral alcohol as well as pre-deposit for appeal under the GST Tribunals may also be discussed.
“Large policy reforms such as rate rationalisation and review of the 28% GST on online gaming may be taken up at a later meeting. The objective right now would be to do a stock taking and discuss urgent issues that need an upfront solution,” said a source familiar with the development.
This will be the first meeting of the GST Council in eight months after it last met in October 2023. Industry has been hoping for a review of the 28% GST on online gaming, horse racing and casinos, which was planned after a period of six months. The issue of GST demand notices for retrospective tax however, may be clarified.
An tax expert said the introduction of relief from retroactive GST actions is expected, thus preventing the recovery of duties not levied due to practices used industry wide like gaming companies
He further added that businesses expect the number of tax rates to be reduced to just three and want petrol and diesel to be included in GST. “Simplifying the GST laws to make it easier for companies to get tax credits is also a key hope. Additionally, businesses are looking for the option to revise GST returns, which would help reduce errors and notices, and are anticipating the extension of e-invoicing to B2C transactions to improve compliance, though this may increase the compliance burden for smaller businesses,” he noted.
Another tax expert said the GST Council deliberations are expected to focus on several critical areas aimed at simplifying the GST framework, enhancing compliance, and addressing industry concerns. “In terms of compliance simplification, proposals may include streamlining the GST return filing process by allowing amendments in case of incorrect reporting in GSTR 1 in same month. There could be some discussions on simplifying the ITC claim process and addressing automated notices issued in case of discrepancies between GSTR-2A and GSTR-3B filings,” he further said.
Source from: https://www.businesstoday.in/latest/economy/story/gst-council-meeting-may-focus-on-procedural-compliance-issues-434248-2024-06-21