GST council meet: All eyes on online gaming and Fertilizers

The 53rd Goods and Services Tax (GST) Council Meeting will be held by the Finance Ministry in New Delhi today. It will be chaired by Finance Minister Nirmala Sitharaman. GST council meet 2024: Main issues The meeting’s agenda has not been disclosed, but it is expected that the Council will address various important issues. This session will be the first GST Council meeting in eight months. It will follow the 52nd meeting on October 7, 2023, where a 28% levy on online gaming, casinos, and horse racing was decided. GST council meet: Online gaming  The government is likely to reassess the 28% GST on the full face value of bets made by online gaming companies. Last year, amendments to GST laws made online gaming, casinos, and horse racing taxable actionable claims. The review is originally scheduled for April 2024. It has not taken place yet. The online gaming industry is facing a tax liability of around Rs 2 lakh crore. They have challenged in court. Their appeals are expected to be heard by the Supreme Court in July.  Experts are suggesting that the GST Council has two choices regarding the issue at hand. They can either refrain from making any adjustments while the matter is being litigated, or they can rectify the decision by removing the retroactive enforcement of the 28% GST. GST council meet: Fertilizers and chemicals In addition, the Council may also discuss the recommendations put forth by the Standing Committee on Chemicals and Fertilizers in February. These recommendations aim to reduce the GST on nutrients and raw materials. It would benefit both fertilizer manufacturing companies and farmers. Currently, fertilizers are taxed at a rate of 5% under the GST, while raw materials like Sulphuric Acid and Ammonia face an 18% GST. Previous discussions to lower these rates were held in the 45th and 47th GST Council meetings in September 2021 and June 2022, respectively. However, no changes were suggested during those discussions. GST council meet: Fuel prices There have been ongoing proposals to include fuel in the GST framework in order to establish consistent pricing for essential energy resources. However, some states have expressed opposition to this idea due to concerns about potential revenue loss from fuel taxes. If petrol were to be integrated into the GST regime, where the highest tax rate is 28 percent, it could result in significant price reductions.Currently, petroleum products are subject to central excise duties and state-level value-added taxes (VAT). It leads to price differences across states. It contributes to higher retail prices.