Expectation from the Upcoming 50th GST Council Meeting dated 11th July, 2023

Introduction

The Goods and Services Tax (GST) Council is a constitutional body that is responsible for making recommendations related to GST. The 50th GST Council Meeting is scheduled to be held on 11th July, 2023, at Vigyan Bhawan, New Delhi. The meeting will be chaired by Union Finance Minister Smt. Nirmala Sitharaman and the Finance Ministers of the states/union territories. The meeting is excepted to address several key issues, including, setting up a GST Appellate Tribunal (GSTAT), GST on online gaming/casinos/ horse racing, changes in e-invoicing timelines, GST return scrutiny and expansion of the Taxpayer Base, etc.

Expectations From the Upcoming 50th GST Council Meeting

Here are a few points that we can expect to be discussed in the upcoming 50th GST Council Meeting:

1. Establishment of the GST Appellate Tribunal (GSTAT): The setting up of GSTAT has been a long-pending demand by taxpayers. It is expected to reduce the burden on taxpayers & courts by streamlining & expediting indirect tax litigation.

2. Changes in the E-Invoicing Timelines: The GST Council may consider changes to the e-invoicing timelines to provide relief to taxpayers. The council may also discuss the issues faced by taxpayers in the implementation of the e-invoicing system and take the necessary steps to address them.

3. Automation of GST Return Scrutiny & Expansion of the Taxpayer Base: The 50th GST Council Meeting may discuss the automation of GST Return scrutiny to reduce manual intervention and enhance tax compliance. The Council may consider expanding the taxpayer base by bringing more sectors under the GST regime.

4. GST on online gaming, horse racing, and casinos: The long- pending issue of taxing online gambling, casinos, and horse racing is expected to be taken up in the upcoming 50th GST Council Meeting. The council will discuss the report of the Group of Minister (GoM) on all the online earning like gambling, casinos, gaming etc and whether to impose a 28% GST rate on the full value, including prize money, both skill of the game or chance. The current GST payable by the online gaming sector is 18% of the gross revenue earned from the fees charged by online gaming.

5. Inverted Duty Structure (IDS) on textiles: The Council might discuss the proposal of the rate revisions for millet & cement as well as the compensation cess on pan masala. The GST Council has not yet provided a timetable for correcting the inverted duty structure, which refers to a situation where the duty on raw materials and other inputs is higher & duty on finished goods is lower.

Conclusion

The 50th GST Council Meeting is expected to address several key issues that have been pending for a long time. The issues are goods and service tax on online gaming, inverted duty structure on textiles, establishment of GSTATs, amendments in e-invoicing, etc. The meeting is significant as it marks the half-century of Council Meetings held since the introduction of the GST regime. The council is expected to take up these issues and come up with solutions that will benefit taxpayers & streamline the indirect tax system in the country.