28% GST on Online Gaming, Other Announcements: 50th GST meet

The GST is a comprehensive indirect tax levied on the supply of goods and services across the country.

The Goods and Services Tax (GST) Council is a constitutional body in India that is responsible for making decisions related to the GST. The council is chaired by the Union Finance Minister and comprises the finance ministers or representatives of the central and state governments.

The key functions of the GST Council include:

1. Tax Rate Determination: The Council decides the tax rates for goods and services under the GST framework. It classifies goods and services into different tax slabs, such as 5%, 12%, 18%, and 28%, based on their nature and importance.

2. Legislative Recommendations: The Council suggests changes to laws, rules, and regulations related to the GST. It recommends amendments to the Central GST Act, State GST Acts, and Integrated GST Act, among others.

3. Tax Exemptions and Thresholds: The Council decides on exemptions from GST and sets threshold limits for businesses. These thresholds determine the turnover below which businesses are exempt from registering under GST.

4. Dispute Resolution: The Council resolves disputes between the central and state governments on any GST-related matters. It aims to maintain a harmonious relationship and ensure uniformity in GST implementation across the country.

5. GST Administration: The Council oversees the administration and implementation of the GST. It establishes procedures and mechanisms for tax registration, return filing, refund processing, and audit.

6. Revenue Distribution: The Council determines the modalities for distributing tax revenues between the central and state governments. It ensures a fair and equitable distribution of GST collections to maintain fiscal balance.

7. Policy Decision Making: The Council makes policy decisions concerning the GST, addressing issues raised by businesses, trade associations, and other stakeholders. It considers feedback and suggestions to improve the GST system.

8. GST Network (GSTN): The Council supervises the functioning and maintenance of the Goods and Services Tax Network, which is the IT infrastructure that supports GST operations, including registration, filing, and tax payments.

The GST Council meets periodically to discuss and decide on various aspects of the GST, such as tax rates, exemptions, and procedural changes. These meetings provide an opportunity for the central and state governments to collaborate and make collective decisions on matters related to the GST.

The 50^th GST Council meeting was held on 11^th July 2023 with key recommendations around Online Gaming, Cancer related drugs, and Uncooked/unfried snack pellets

Here are the Key 20 recommendations we must know:

Casino, Horse Racing, and Online gaming will attract 28% GST
Cancer-fighting drugs like Dinutuximab (Quarziba), medicines, and Food for Special Medical Purposes (FSMP) to get IGST exemption
GST rate on food served in cinema halls to be reduced to 5%. Earlier, the GST rate was 18%.
All Utility Vehicles (UVs) are to move into the 22 percent cess bracket. Amendment of the entry 52B in compensation cess notification to include all utility vehicles by whatever name called provided they meet the parameters of Length exceeding 4000 mm, Engine capacity exceeding 1500 cc, and having Ground Clearance of 170 mm & above and to clarify by way of explanation that ‘Ground clearance’ means Ground Clearance in un-laden condition. Now, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladed clearance of 170 mm and more).
GST rates slashed from 18 percent to 5 percent on 4 items - Uncooked, unfried & extruded snack palettes, fish soluble paste, LD slag (at par with blast furnace slag), and imitation zari thread
Supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under the reverse charge mechanism
Reduction of GST rate on LD slag (Linz-Donawitz (LD) slag, solid waste produced during steel manufacture in basic oxygen furnace) from 18% to 5% to encourage better utilisation of this product
RBL Bank and ICBC Bank are to be included in the list of specified banks for which IGST exemption is available on imports of gold, silver, or platinum
GST exemption on satellite launch services supplied by ISRO, Antrix Corporation Limited, and New Space India Limited (NSIL) may be extended to such services supplied by organisations in the private sector also to encourage start-ups.
The mechanism for system-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that is made available in FORM GSTR-2B above a certain threshold.
Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23.
Exemption from the filing of annual return (in FORM GSTR-9/9A) for taxpayers having aggregate annual turnover up to two crore rupees, to be continued for FY 2022-23 also.