As the new government is taking charge, the 53rd GST Council Meeting has already been scheduled for June 22, 2024, in New Delhi. The meeting will begin at 2:00 PM, and the press conference will be held in the evening under the chairpersonship of Nirmala Sitharaman (Union Finance Minister).
This GST Council will meet our Honorable Prime Minister for the first time after he returns to power for the third consecutive time. It is the second consecutive time that the government has appointed Nirmala Sitharaman as Finance Minister. She will soon be honored to present the final Budget for FY25, reflecting the Modi 3.0 government’s priorities for Viksit Bharat.
In this meeting, plenty of agenda items will be discussed, including the possibility that online gaming will receive a tax rate cut, an amnesty scheme to resolve pending GST disputes, and more.
What are the possible agendas to be discussed in the 53rd GST Council Meeting?
Here are some of the agendas that will be discussed in the meeting.
Revamping Tax Structure
The council is more likely to have a discussion oversimplifying the complex multiple tax rate structure, as it is still an arguable point despite rising GST revenues. The government may probably approach the industries with a streamlined approach to minimize their administrative burden or complexities.
Address Inverted Duty Structure
In the meeting, the council may tackle the inverted duty structure, as it creates cash flow issues and accumulates utilized ITC (Input Tax Credit). The Textile, Footwear, and fertilizer sectors are mainly affected, and their experts have anticipated resolutions to deal with these challenges.
Amnesty Scheme for Tax Disputes
Businesses have requested the GST Council to draw their attention to the amnesty scheme to resolve disputes occurring due to GST implementation. Addressing this issue will help businesses settle their past issues without any hefty penalties, minimize litigation backlogs, and facilitate a healthy tax environment.
Review 28% Levy on Online Gaming, Horse Racing, and Casinos
Currently, the government has imposed 28% GST on online gaming, horse racing, and casinos. However, charging this huge percentage of taxation is contentious, and stakeholders are expecting a more balanced tax regime that facilitates industry growth and maintains revenue integrity. Hence, the government may review this matter at the 53rd GST Council Meeting.
Addressing Sector-Specific GST Issues
Every sector has its own issues and challenges with the GST system. Hence, the council may even discuss some serious sector-specific issues. For instance, pharmaceuticals and EV sectors may face issues with current tax rates on input versus final products.
Enhancing GST Compliance for Ease of Business
The meeting may also revise GST compliance measures, such as the taxpayer’s ability to file revised returns. Discussing this agenda will simplify the tax processes and increase the friendliness of compliance, enhancing the overall ease of business.
Inclusion of Petroleum products under GST
The council may also have discussions over petrol, ATF, diesel, natural gas, and other specific petroleum products that fall under GST frameworks. This is a very recurring topic for a council meeting because industry players advocate to gain potential benefits.
Read More: GST Council Meetings
Conclusion
Recent data revealed from the Finance Ministry for May 2024 show that the government is experiencing a 10% annual growth in GST collection, which is approximately Rs. 1.74 lakh crore.
However, the government has recorded a GST collection of Rs. 2.10 lakh crore. Therefore, the council may even discuss some ways to increase and sustain the efficiency of GST revenue without affecting any business too much.
The official agendas of this 53rd GST Council Meeting is yet to be finalized. However, it is expected that the council may address key economic issues and execute some groundwork for the government’s priorities as per the budget for FY25.
