22nd June 2024- The Goods & Services Tax (GST) Council Meetings play a pivotal role in shaping India’s tax policies, serving as a crucial platform for discussions on taxation issues across various industries.
The delay in convening the 53rd GST Council meeting was primarily due to budgetary commitments and the Election Commission’s code of conduct. With the formation of a new coalition government, expectations are high for the upcoming meeting scheduled for June 22, 2024.
In recent meetings, significant decisions were made, including excluding ENA from the GST ambit, amendments to Input Service Distribution (ISD) provisions, and the introduction of Amnesty Schemes aimed at easing taxpayer burdens.
One notable decision from the 52nd GST Council meeting introduced sub-rule (2) under Rule 28 of the CGST Rules, effective from October 26, 2023, regulating the value of supply for corporate guarantees. However, industry feedback suggests that concerns remain unresolved, particularly regarding the valuation basis, availability of Input Tax Credit (ITC), and the applicability of the rule.
A key point of discussion in upcoming meetings is the potential inclusion of petroleum products under GST, including petrol, diesel, ATF, natural gas, and select items. Industry stakeholders have advocated for these products to come under GST to rationalize taxes, align rates, and boost sectors like CNG-powered vehicles.
Another pressing issue is the taxation of online gaming, currently subject to 28% GST, which has posed challenges for the industry. The sector awaits clarity on retrospective tax demands and hopes for resolutions regarding taxation in the upcoming council meetings.
Rate rationalization efforts, spearheaded by a committee, aim to simplify GST structures across sectors like footwear, textiles, and FMCG. The industry anticipates updates on the taxability of multi-purpose vouchers and hopes for swift resolutions despite the recent government formation.
In real estate, concerns persist over GST applicability on development and leasehold rights transfers, alongside queries on Input Tax Credit in the infrastructure sector. These issues have garnered attention in judiciary circles, prompting industry calls for government intervention to expedite resolutions.
Overall, industries eagerly anticipate clarifications and positive outcomes from the upcoming GST Council Meetings. The focus remains on addressing industry concerns effectively and timely under the new government’s leadership.
Conclusion
Stakeholders across sectors are hopeful that the GST Council will convene soon to address pressing tax issues and provide necessary clarifications. The outcomes of these meetings are crucial for shaping India’s tax landscape and fostering a conducive business environment.
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