53rd GST Council Meeting: Key Expectations for Tomorrow
Hopes are High for the upcoming GST Council Meeting to be held on 22nd June
Businesses are hoping the GST Council meeting tomorrow, on 22 June, 2024 will revisit the idea of simplifying the current system with its many tax rates. This comes after a significant increase in Goods and Services Tax revenue collection, in comparison with pre-GST and pre-demonetisation revenues. Additionally, the gaming and betting industry anticipate that the Council will...
Businesses are hoping the GST Council meeting tomorrow, on 22 June, 2024 will revisit the idea of simplifying the current system with its many tax rates. This comes after a significant increase in Goods and Services Tax revenue collection, in comparison with pre-GST and pre-demonetisation revenues.
Additionally, the gaming and betting industry anticipate that the Council will consider lowering the high 28% tax rate applied to online gaming, horse racing, and casinos.
Industry Insights and Anticipations for the Upcoming GST Council Meeting
The 53rd GST Council meeting, scheduled for June 22, 2024, in New Delhi, has generated significant anticipation among state finance ministers and industry leaders. The agenda remains undisclosed, but key topics are expected to shape the discussion and influence the Union Budget slated for next month.
Revamping the Tax Structure
One of the primary expectations from the meeting is a discussion on simplifying the complex multiple-rate tax structure, which has been a point of contention despite rising GST revenues. Industries are keen on a streamlined approach that reduces the burden and complexities associated with the current system.
Reviewing the 28% Levy on Online Gaming and Related Sectors
A critical review of the 28% GST imposed on online gaming, horse racing, and casinos is anticipated. This levy has been contentious, and stakeholders are hopeful for a more balanced tax regime that fosters industry growth while maintaining revenue integrity.
Addressing the Inverted Duty Structure
The meeting is expected to tackle the inverted duty structure, which creates cash flow issues and accumulates unutilized Input Tax Credit ( ITC ). Sectors such as textiles, footwear, and fertilizers are particularly affected, and experts anticipate resolutions to mitigate these challenges.
Inclusion of Petroleum Products Under GST
Discussions are also likely to focus on including petrol, diesel, ATF, natural gas, and selected petroleum products within the GST framework. This inclusion has been a recurring topic, with industry players advocating for its potential benefits.
Amnesty Scheme for Tax Disputes
Businesses are urging the GST Council to prioritise an amnesty scheme to resolve tax disputes arising from GST implementation. This scheme would allow businesses to settle past issues without heavy penalties, reducing litigation backlogs and fostering a healthier tax environment.
Enhancing GST Compliance for Ease of Business
Revisions in GST compliance measures, such as the ability to file revised returns, are on the agenda. These changes aim to simplify processes and make compliance more taxpayer-friendly, enhancing the ease of doing business.
Addressing Sector-Specific GST Issues
The Council is expected to consider sector-specific issues, such as the taxability of ESOPs and corporate guarantees, as well as rate-related clarifications. The pharmaceuticals and EV sectors, in particular, face challenges with current tax rates on inputs versus final products.
GST Rate Rationalization and Infrastructure Development
Industry leaders are calling for a rationalisation of the existing four-tier GST rate structure. Additionally, there's a push for infrastructure development and practical measures to bolster economic growth and assure the industry of supportive government intentions.
Recent GST Collection Trends
Recent data from the Ministry of Finance shows a 10% year-on-year growth in GST collections for May 2024, amounting to Rs 1.73 lakh crore. April 2024 saw a record GST collection of Rs 2.10 lakh crore. This growth underscores the increasing efficiency and compliance within the GST framework.
Conclusion
The 53rd GST Council meeting holds significant potential for impactful decisions and reforms. With high expectations from various sectors, the outcomes of this meeting could shape the future of India's GST landscape and economic trajectory.
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