52nd GST Council Meeting: Terms and Conditions for Appointment of Chairman and Members of GSTAT Tops Agenda

52nd GST- Council Meeting-Terms - Conditions - Appointment - Chairman - Members - GSTAT Tops Agenda-TAXSCAN

The 52nd meeting of the Goods and Services Tax (GST) council, set to take place on Saturday, October 7, 2023, will be chaired by Union Finance Minister Nirmala Sitharaman. This gathering marks the first council meeting following the recent amendments to the GST regulations pertaining to online gaming.

The Goods and Service Tax Appellate Tribunal (GSTAT) may place significant emphasis on discussing the criteria and prerequisites for appointing its chairman and members during the upcoming council meeting. Anticipated key points for discussion include outlining the composition of the 31 GSTATs established nationwide and specifying the procedure for appointing both members and the chairman.

On the 14th of September 2023, the Ministry of Finance, through notification number S.O. 4073(E), officially established the State Goods and Services Tax Appellate Tribunal (GSTAT). This tribunal will operate with a total of 31 benches located throughout the country. The notification came into force on the publication of the notification in the gazette.

Read More: Constitution of State GSTATs: Finance Ministry notifies 31 benches across the Nation

In the 50th and 51st meetings of the GST Council, discussions centred around the imposition of Goods and Services Tax (GST) on transactions related to online gaming. During these meetings, specific rules were formulated to guide the implementation of GST on these transactions. It was recognized that amendments to the Central GST and state GST laws were essential to facilitate this taxation framework.

In the upcoming meeting, scheduled for review, the GST Council will assess whether all the states have successfully passed the requisite legal amendments by the deadline of October 1, 2023. This review is crucial in ensuring uniformity and compliance across all states in the implementation of GST on online gaming transactions, as agreed upon in the previous council meetings.

Read More: 52nd GST Council Meeting: Council Likely to Review Progress in Implementation of States’ SGST Amendments

The Council will also be considering the possibility of exempting millets from GST. Additionally, discussions will be held to provide clarifications regarding the imposition of GST on redevelopment projects undertaken by builders.

The GST Council is expected to address the contentious matter of imposing GST on personal guarantees offered by company directors to banks in exchange for financial support. Furthermore, the meeting will also involve deliberations on the tax implications of corporate guarantees extended to subsidiary companies, according to insider sources.

It is expected that the council will have a discussion on reduction in the Goods and Services Tax (GST) rate on health insurance for specific categories, particularly senior citizens.  This reduction could potentially bring the GST rate down from the existing 18% to 12%.

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