National News

GST Council’s 50th Meeting Results In Key Recommendations For Taxation And Compliance

July 12, 2023
The Commune

In a significant development, the Goods and Services Tax (GST) Council recently concluded its 50th meeting, where crucial decisions were made regarding taxation and compliance. Here are the major recommendations put forth by the council:

Uniform Taxation for Casino, Horse Racing, and Online Gaming: The GST Council has recommended that casino, horse racing, and online gaming activities be taxed at a uniform rate of 28% on the full face value. To arrive at this decision, a Group of Ministers (GoM) was formed to address taxation issues related to these sectors. After careful deliberation, the GoM submitted its second report recommending that the GST Council decide whether the tax should be based on the full-face value of bets placed or on the Gross Gaming Revenue (GGR). 

Inclusion of Online Gaming and Horse Racing as Taxable Actionable Claims: To ensure appropriate taxation, suitable amendments to the law have been recommended by the GST Council. These amendments would incorporate online gaming and horse racing under Schedule III as taxable actionable claims. According to the proposed framework, taxation will be based on the initial value of chips purchased for casinos, the complete amount of bets placed with bookmakers/totalisators in the context of horse racing, and the entire value of bets made in online gaming.

Establishment of GST Appellate Tribunal: The GST Council has advised the Centre to notify the GST Appellate Tribunal, effective from 1 August 2023. This move aims to streamline the appellate process and provide taxpayers with a dedicated forum for addressing disputes and grievances related to GST. 

Exemptions for Cancer-related Drugs and Medicines: To support healthcare initiatives, the GST Council recommends exempting cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from GST taxation.

This step aims to alleviate the financial burden on patients and ensure easier access to essential medical resources. 

Reduction in Tax Rates: In a bid to promote certain industries, the GST Council has proposed reducing tax rates from 18% to 5% for four specific items.

These include uncooked, unfried, and extruded snack palettes, fish soluble paste, LD slag to be at par with blast furnace slag, and imitation zari thread.

Streamlining Compliance Measures: Recognizing the importance of compliance, the GST Council has recommended several measures to streamline processes and reduce complexities. These efforts aim to enhance the ease of doing business and facilitate smoother GST operations for taxpayers.

The recommendations made during the 50th GST Council meeting will undergo further consideration and implementation by the concerned authorities. These decisions mark an important milestone in the ongoing efforts to refine and strengthen the GST framework in India.

(With inputs from PIB)

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