The 52nd meeting of the GST Council will be held on October 7, 2023 at Vigyan Bhawan, New Delhi.
52nd GST Council Meeting: Council likely to adjust GST rates on various products including vehicles purchased by visually impaired, millet food
The 52nd meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, will be held on October 7, 2023 (Saturday) at Vigyan Bhawan, New Delhi. The Council is likely to adjust the GST rates on several products, including vehicles purchased by the visually impaired and millet powder. The country is also likely to consider a proposal to bring all services provided by Indian Railways under the forward charging mechanism, instead of the reverse charge mechanism.
Probable agenda for the 52nd GST Council meeting:
1. Concessional tax rate of 18% on vehicles purchased by the visually impaired,
2. Exemption for millet sold in powder form
3. Proposal to bring all services provided by Indian Railways under the forward charging mechanism, shifting from RCM
4. Clarify the taxation of bank and corporate guarantees provided by directors and promoters to a company and much more.
According to Reuters According to a report citing a source, the Council is also likely to discuss exempting distilled alcohol used for liquor production from the indirect tax.
Highly distilled or extra neutral alcohol contains 95% alcohol and is used for the production of spirits and for industrial purposes.
According to the report, the council will also consider a proposal to reduce VAT on molasses from 28% to 5%.
Sanjay Chhabria, Director (Indirect Taxes), Nexdigm, said, “The constitutional scheme of GST ensures simultaneous levy of tax on supplies of goods and/or services by the Center and the states. Based on the previous GST Council meetings, the changes in the GST law adopted by Parliament have come into effect from October 1, 2023. This includes the changes proposed in the Union Budget 2023, as well as changes related to taxation of online gambling, casinos and horse racing. .”
However, he added that the corresponding changes in the GST laws of the state and the Union Territory are yet to come into force and this could pose serious challenges to the taxpayers. In fact, the unilateral changes would go against the idea of ’one nation, one tax’ and the GST Council could consider a temporary suspension of implementation while urging member states to implement the changes as soon as possible .
“The official agenda is not yet out in the public domain, yet media reports suggest that the GST Council will regroup for its 52nd meeting to review the progress made by the states in bringing changes in the respective legislations. It is also understood that the ‘All India Gaming Federation’ – the apex body for online gaming in India, has appealed to the Center to reconsider the notifications, highlighting the possibility of unilateral actions by various states in the future regarding to various other aspects. of GST,” Chhabria said.
Moreover, tariff rationalization has been on the Council’s radar for some time, and we could see a reconstitution of the Group of Ministers to consider this aspect. But with the general election around the corner, it would be interesting to see if reforms are made in this regard, he said.
Previous GST Council
The 51st GST Council, held in August, decided to retain the 28 percent tax on online gambling, casinos and horse racing and discussed modalities to implement it. The 51st GST Council meeting took place within less than a month of the previous GST Council meeting on July 11. The modalities for determining the supply value in online gaming and casinos for levying a tax of 28 percent were discussed.
