GST Council Meeting starts: Tax on online gaming, casinos, horse racing likely to be discussed

Goods and Services Tax (GST) Council’s 48th meeting has started in Delhi. The meeting is being held virtually through video conferencing almost after six months. Union Finance Minister Nirmala Sitharaman on Saturday is chairing the meeting. It will be the last meeting before the Union Budget 2023.  

In the previous meeting held in June 2022, the GST Council had decided to bring pre-packaged and pre-labelled retail packs, including curd, lassi, and buttermilk, under the GST purview. The Council had also hiked GST on items like LED lamps, solar water heaters, etc. The rate changes became effective on July 18, 2022.

It was also decided that the council would accept the Group of Ministers’ interim reports on the correction of duty inversion and exemption.  

Today’s possible agenda 

At today’s meeting, the Council may discuss certain tax rate changes and system reforms for ease of compliance. The topic of GST rate rationalisation is likely to be discussed. 

The central and state finance ministers may consider clarifying on provisions related to e-invoicing requirements of businesses, and treatment of statutory dues under the GST law. 

The GST council may also look into taxation of online gaming and casinos. The panel of state ministers, set up by the GST council to look into online gaming taxation, submitted its report to Sitharaman on Thursday. 

In November, the panel, which is headed by Meghalaya CM Conrad Sangma, discussed the matter and agreed that a 28 per cent GST will be levied on online gaming, casinos, and horse racing. 

At present, those involved in online gaming pay an 18 per cent GST on the gross gaming revenue, which is charged on the total fees by online gaming portals. 

Besides, the GST Council may also bring up issues such as the decriminalisation of offences under the GST law, and setting up appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha businesses. 
Other agendas which might come up from discussions 

Proposal to levy GST only on insurance premiums 'no claim bonus' 
22% compensation cess on SUVs, provided they have 170 mm ground clearance 
28% GST if fruit juice or pulp contains CO2 Preservative/Additive 
Private refineries to pay 5% GST on blending ethanol with petrol 
Airlines with regional connectivity to not attract GST on VGF subsidy 
RuPay Debit Card, BHIM-UPI transactions to be tax-free.