New Delhi: The GST Council, headed by Union Finance Minister Nirmala Sitharaman, is expected to meet on Tuesday to decide on various issues such as taxing online gaming, high-end vehicles as well as horse racing and casinos. activities.
Sources said the council may clarify on the definition of multi-utility vehicles (MUVs) and crossover utility vehicles (XUVs) for levying 22 per cent compensation cess on top of the 28 per cent GST rate.
The Council’s Fitment Committee, comprising central and state tax officials, had recommended to the GST Council that MUVs and XUVs should be defined at par with Sports Utility Vehicles (SUVs) for the purpose of levying GST.
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It had suggested that a 22 per cent cess be levied on all such utility vehicles, irrespective of their nomenclature, if they meet three criteria, namely, length should exceed 4 metres, engine capacity should exceed 1,500 cc and Ground clearance should be over 170. mm
In December 2022, the GST Council clarified the definition of SUV. However at that time, some states sought a similar clarification for the MUV as well.
Apart from this, the fitment committee also suggested that a cancer drug called dinutuximab should be exempted from integrated GST or IGST, which is imported for personal use by patients. At present, there is 12 percent IGST on it.
The council can also take a decision on this.
It is also likely to discuss the long-pending issue of levying 28 per cent GST on online gaming, casino and horse racing. Sources said that apart from this, setting up of GST tribunals and making their rules can also be discussed during the meeting.