With the impending election season, the schedule for the next GST Council meeting remains uncertain, giving rise to apprehensions about the timely resolution of critical tax-related issues. Reportedly, no Goods and Services Tax Council meeting will be held until the new government forms.
The GST Council, entrusted with pivotal tax-related decisions, has encountered scheduling challenges due to diverse commitments, leading to a deviation from its mandated timetable. Notably, the council could not convene in January and February, as per the stipulated rules, attributing this delay to budgetary obligations of both the Union and State governments.
Unfortunately, the anticipated meeting of the GST Council, presided over by the Union Finance Minister, before the Model Code of Conduct is enforced in April-May will no longer be conducted before elections, as per sources. There are strong indications that the Real Estate Regulatory Authority ( RERA ) may soon be exempt from paying Goods and Services Tax ( GST ).
Read More: GST Council may Meet Soon, Clarification on GST Exemption to RERA Likely
Of particular concern is the lapse in convening meetings since the last held on October 7, 2023. This departure from the prescribed timeline becomes evident as regulations dictate a meeting should have occurred in January 2024.
In a press conference, Revenue Secretary Sanjay Malhotra announced that the Goods and Services Tax ( GST ) Council will evaluate the decision to impose a 28 percent GST on the full face value of online gaming after March 31.
The review is anticipated to take place in the upcoming GST Council meeting, likely scheduled later this month. Malhotra clarified that a review does not necessarily imply a change in rates but is intended to assess the current scenario and determine if any adjustments are required. The GST Council had previously revised the tax rate on online gaming from 18 percent to 28 percent on full face value, effective October 1, 2023.
Read More: Online Gaming GST Council Review not until March 31, says Revenue Secretary
During the October meeting, discussions on online gaming were deferred to the subsequent gathering by the GST Council. Additionally, matters related to the clarification of various classification issues were earmarked for resolution in the upcoming meeting, now facing further delay.
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