GST Council meet underway: Here’s what may get cheaper and costlier today; 5 key expectations

At the GST Council meeting, several issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges are likely to be discussed

Livemint
Published22 Jun 2024, 04:05 PM IST
The goods and services tax was introduced in the country with effect from July 1, 2017. iStock
The goods and services tax was introduced in the country with effect from July 1, 2017. iStock

Union finance minister Nirmala Sitharaman will chair the 53rd Goods and Services Tax (GST) Council meeting scheduled later on Saturday.

The GST meeting will be the first after the formation of the NDA government and after a gap of eight months. The 52nd GST Council meeting was held on October 7, 2023. All the state finance ministers are likely to attend the GST Council meeting.

The agenda of the GST Council meeting is not announced yet.

At the GST Council meeting, several issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges are likely to be discussed.

The goods and services tax was introduced in the country with effect from July 1, 2017.

Earlier in the day, Sitharaman chaired a pre-Union budget meeting with the finance ministers of all states and Union territories.

Here are some key areas on which the GST Council’s deliberations are expected –

Fertilisers: Presently, 5 per cent GST rate is applicable on fertilisers, while raw materials such as Sulphuric Acid and Ammonia are charged at 18 per cent GST.

The council may discuss the recommendations of the Standing Committee on Chemicals and Fertilisers to lower GST on nutrients and raw materials.

Online gaming: Currently, 28 per cent GST is levied on the full value of bets for online gaming companies. The GST council is likely to review the current GST rate on online gaming.

Telecom: An issue related to GST payments, along with the instalments paid towards spectrum charges, by the telecom companies may also be taken up at the GST Council meeting.

Extra Neutral Alcohol: At the meeting held in October 2023, the GST Council gave up the right to tax Extra Neutral Alcohol or ENA (raw product for making alcohol for human consumption) to states. The council is likely to vet the amendments in the GST law with respect to the decision.

Corporate guarantees: The council may review its decision to levy 18 per cent GST on guarantees provided by corporates to their subsidiaries. The CBIC circular on corporate guarantee was stayed by the Punjab and Haryana High Court.

 

Also Read | Budget 2024: A look at what corporate India expects from FM Nirmala Sitharaman
Also Read | 53rd GST Council Meet Today: What are the key expectations?
Also Read | GST Council set to amend alcohol tax laws, enable dispute settlement
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First Published:22 Jun 2024, 04:05 PM IST
HomeEconomyGST Council meet underway: Here’s what may get cheaper and costlier today; 5 key expectations

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