The GST Council has a lengthy agenda at its 48th meeting — and possibly the last before the budget — on December 17 to be held in the virtual mode.
The
council is likely to consider the reduction in the GST rate on health
insurance, the setting up of appellate tribunals and the decriminalisation of
offences.
Besides,
it may consider the GST levy on casinos, online gaming and horse racing.
Officials said the council may consider lowering the rate on health insurance to 12 per cent from 18 per cent.
The
insurance sector has long been demanding, especially in the wake of heightened
medical concerns during and after the pandemic, the removal of the GST on
health and term insurance or at least a rate less than 18 per cent.
The
high rate is often cited as the main reason behind the low penetration of
health insurance in the country.
The
council could also consider the two reports by the group of ministers: one on
appellate tribunals and the other on decriminalising offences.
Haryana
deputy chief minister Dushyant Chautala-headed GOM has submitted its final
report on the setting up of the Goods and Services Tax Appellate Tribunals
(GSTAT).
The
proposed tribunals will hear appeals against orders passed by commissioners and
the appellate authorities and would comprise a president, two judicial members
and one technical member each from the Centre and state.
The GOM
on the levy of online gaming, horse racing and casinos is yet to submit its
report. “If the report is submitted before the meeting, it will be taken up,”
said a source.
The GoM
is understood to be in favour of levying a 28 per cent tax on online gaming,
horse racing and casinos but there is no consensus on whether the tax should be
only on the fees or the entire consideration.
Apart
from the rate of tax, it is important to note whether the council recommends
levying GST only on the revenue of the gaming company or on the entire face
value of the game.
The
forthcoming GST Council meeting should consider the reports of the two GoMs on
online gaming and capacity-based GST levy on certain tobacco products. Regarding
online gaming, casino and related services, it is expected that clarity on both
classification and rates would be discussed.
In
respect of tobacco products such as pan masala and gutkha, a proposal to levy
GST on a presumptive basis considering the capacity of the unit, would mean
making changes to the basic structure of the GST and should ideally be avoided.
The
operationalisation of the GST tribunals, which would make the dispute
resolution process more effective, could also be finalised at the meeting, he
said.
Apart
from this, as this meeting may be the last meeting before Union budget 2023,
the council may also discuss certain tax rate changes and system reforms for
ease of compliance. Further, the topic of GST rate rationalisation is likely to
be picked up in the discussions.
However,
the rationalisation of GST rates and a review of the slabs seem unlikely as the
GoM has not yet submitted its report. The Council would not take up the matter
amidst inflationary pressure on the economy.
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