FM Nirmala Sitharaman chairs GST Council meeting in Chandigarh
GST Council meeting: More complex issues like the report of the Group of Ministers (GoM) on compensation to states beyond June 2022 and 28 per cent tax on online gaming, casino and horse racing will be discussed on the second day of the GST Council meeting in Chandigarh.
On the first day, the 47th GST Council, chaired by Union Finance Minister Nirmala Sitharaman and chaired by state counterparts, decided to change the tax rates of certain goods and services, including pre-packaged and labeled food items, to prevent evasion. Bringing substances into the tax net. In addition, several procedural and legal changes were also discussed, including monthly GST return forms, and mechanisms to deal with high-risk taxpayers.
Suggesting a uniform tax rate and valuation methodology for online gaming, casino and horse racing, the Group of Ministers headed by Meghalaya Chief Minister Conrad Sangma said that no distinction should be made between these activities for the purpose of levying GST. The premise that the activity is a game of skill or coincidence or both.
The GOM recommends that online gaming be taxed on the full value of consideration, including contest entry fees paid by the player upon participation in the game.
In the case of Race Course, the GoM has suggested that GST be levied on the full value of bets deposited in the totalizers and kept with the bookies. In casinos, the GOM recommends that the full face value of chips/coins purchased by a player from the casino be taxed. No further GST will be applicable on the value of bets placed in each round of betting, including bets placed against winnings in the previous round.
On extension of compensation paid to states for lost revenue from their taxes, such as the inclusion of sales tax (VAT) in the national GST, beyond June 2022, opposition-ruled states have agreed to a decision in the Council based on consensus. stressed for. Severa non-BJP ruled states want the compensation system to be extended by five years or the share of states in GST revenue to be increased from the current 50 per cent to 70-80 per cent.
When GST was implemented, states were promised compensation for revenue loss by June 2022. The amount of compensation was raised by levying a cess on luxury, demerit and sin goods over and above the 28 per cent tax.
With PTI inputs
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