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GST Council Meeting on June 22...A key focus will be the review of the 28% GST on the full value of bets placed by online gaming companies
The Goods and Services Tax (GST) Council is set to convene on June 22 in the national capital to deliberate on several pivotal issues, including a potential review of the contentious 28% tax on online gaming. Officials informed that the council may also address recommendations from the fitment committee concerning the inverted duty structure of 15 items, although broader rate rationalization discussions might be postponed. In an X post on Thursday, the council secretariat confirmed the date of the meeting. In a significant move last November, the GST Council reconstituted the group of ministers (GoM) on rate rationalization, led by Uttar Pradesh finance minister Suresh Kumar Khanna. Despite its reconstitution, the GoM has not convened since, and may undergo further changes due to recent state government transitions, with a new timeline expected for its final report submission.
Officials indicated that the detailed agenda will likely be finalized in the coming days. A key focus will be the review of the 28% GST on the full value of bets placed by online gaming companies, a policy implemented on October 1, 2023, and slated for reassessment after six months. The industry anticipates discussions on integrating natural gas and aviation turbine fuel into the GST regime. Additionally, the council is poised to clarify the tax implications on employee secondment, related-party transactions, employee stock option plans (Esop), corporate guarantees, and the inverted duty structure in textiles and fertilizers.
The forthcoming meeting is crucial for addressing these significant tax issues and providing much-needed clarity to various sectors impacted by GST policies.