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Higher GST Revenues Not Yet Impacting Rate Rationalization.



  Oct 09, 2023

52nd GST Council Meeting - Outcomes and Rationale



What were the main decisions made during the meeting?

Tax Rates on Millet-Based Products:Lowered

Age-Related Norms for GST Appellate Tribunals: Tweaked

Taxation Rights on Extra Neutral Alcohol: Ceded to States

28% Tax on Online Betting: Affirmed, effective from October 1

Tax Demands on E-Gaming Firms: Discussed but clarified as not retrospective

Future Perspective Plan: Discussed imposing a cess or surcharge on top of GST levies after March 2026

Treatment of Guarantees: Clarified

Additional Window for Appeals: Granted till January 31, 2024

What was the rationale behind these decisions?

Tax Rates on Millet-Based Products: To promote a variety of aims

Age-Related Norms for GST Appellate Tribunals: To streamline the functioning of tribunals.

Taxation Rights on Extra Neutral Alcohol: To give States more control.

28% Tax on Online Betting: Despite opposition from 13 States, the Council decided to go ahead, citing long discussions over years.

Tax Demands on E-Gaming Firms: Clarified to remove ambiguity and legal disputes.

Future Perspective Plan: To plan for financial stability post the phasing out of the GST compensation cess in 2026.

Treatment of Guarantees: To settle emerging disputes and clarify tax treatment.

Additional Window for Appeals:To provide taxpayers an opportunity to settle pending cases.

Was there any opposition to these decisions?

Yes, 13 States have not yet passed the enabling laws for the 28% tax on online betting. Ministers from Delhi and Chhattisgarh raised concerns about the impact on the gaming industry.

What are the effective dates for these decisions?

The 28% tax on online betting will be effective from October 1. An additional window for appeals has been granted till January 31, 2024.

Were any future plans discussed?

Yes, the Council plans to meet in the future to work out a "perspective plan" on imposing a cess or surcharge on top of GST levies after March 2026.

What is the current status of GST revenue and its impact?

Higher GST revenues were noted, but no decision has been taken on the rationalisation of the GST rate structure.


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