Agenda and Expectations from the 48th GST Council Meeting dated 17th December, 2022

Introduction 

The 48th GST Council meeting will take place through video conferencing on Saturday, December 17, 2022. The meeting will be chaired by Union Finance Minister Smt. Nirmala Sitharaman and the Finance Ministers of the states/union territories are anticipated to participate. The 48th GST Council meeting will cover a number of topics because it has been planned after a five-month break. In June 2022, the GST Council had its 47th meeting. Read on to know more about the agenda and the key expectations from the 48th GST Council meeting.

Agenda of 48th GST council meeting

The following is the agenda for the 48th GST Council meeting, which is scheduled for December 17, 2022:

• Certain GST-related offences are expected to be decriminalized.

• According to the second report sent to the Union Finance Minister (FM) on December 16, 2022, the Government of Ministers(GoM) is unable to reach a conclusion about GST on online gaming, casinos, gambling, and horse racing, so a decision must be made in these areas.

• The establishment and powers of the GST Appellate Tribunal in 2023.

• It is possible to lower the GST rate for health insurance from 18% to 12%.

• Defining the scope of power of CCI functioning as the Anti-profiteering Authority.

• Applicability of the special composition scheme for selling brick kilns with a 6% GST rate without the input tax credit. If the company chooses not to join the program, there may also be a 12% GST charge with an input tax credit.

• Converting to capacity-based GST valuation principles for tobacco taxes.

• The reverse charge method may apply to the GST levy on Mentha at the initial stage of supply.

• The GST rate panel may provide tax-related clarification. Vehicles in the SUV category that have an engine displacement of 1,500 cc, a ground clearance of more than 170 mm, and a length of more than 4,000 mm may be subject to a 22% compensating cess.

• 28% GST may be applied to carbonated drinks made from fruit pulp or juice.

• Incentives paid to banks for BHIM-UPI and RuPay debit card transactions, as well as viability gap funding subsidies paid to airlines for the regional connectivity plan, may be exempt from the rule.

Expectations from 48th GST council meeting

1. The Goods and Service Tax Appellate Tribunal (GSTAT)

The final report from the Group of Ministers (GoM) on Establishing the Appellate, which was organized by the Deputy Chief Minister of Haryana, is prepared and will be presented to the council for debate on July 17. GSTAT was established primarily to hear appeals against decisions made by the Appellate Authority or the Revisional Authority.

2. GST legislation decriminalization

The authorities had instructed GST officers to file charges against GST violators in cases where the amount of input tax credit fraud or abuse exceeds Rs 5 crore. According to the authorities, the Council may also consider the panel’s recommendations to decriminalize several crimes under the GST Act and increase the limit to raise a legal action from Rs 5 crore to Rs 20 crore.

3. Horse racing, casinos, and online gaming

According to reliable sources, if the GoM report is given to the council before December 17th, it may also be reviewed during the meeting about online gaming, casinos, and horse racing. The GoM’s prior meeting was unable to reach an agreement on a tax structure for these sectors. Horse racing can be subject to a 28% GST tax, but GoM wants to tax internet gaming equally to casinos. There is debate over whether this tax should be applied to platform fees or to the total amount given by participants.

4. Commission for Competition

The Competition Commission encourages an environment of competition that is favourable to free trade, efficiency, and innovation, which gives customers more options and better quality and pricing for goods and services and, as a result, reduces uncertainty in the market.

5. Other important considerations

The Council may also talk about other important issues, such as how taxes are split between the federal government and the states, how to rationalism rates, how to reduce the GST on health insurance premiums, and how to get rid of the IGST on ocean freight.

Conclusion

The 48th meeting of the GST Council in 2022 will be the final one for this financial year and maybe the final one before the Budget in 2023. At the 48th Council Meeting, the authorities are anticipated to make a variety of decisions that will benefit taxpayers. The advantages of the GST are extensive and advantageous to both businesses and consumers. It has removed corruption from tax administration and made it transparent. We expect more fruitful outcomes from this meeting for the economy and taxpayers.