GST Rates Rationalization May Be Discussed During The 54th GST Meeting
Expected issues to be discussed in the upcoming 54th Council Meeting of GST, which is scheduled to be held on September 09, include GST Rates rationalization by Removal of 12 per cent GST Rate while merging the items in 5 per cent and 18 per cent rates suitably
image for illustrative purpose
Mumbai, Sep 09: Expected issues to be discussed in the upcoming 54th Council Meeting of GST, which is scheduled to be held on September 09, include GST Rates rationalization by Removal of 12 per cent GST Rate while merging the items in 5 per cent and 18 per cent rates suitably.
Bringing the Petroleum and Natural Gas products under GST may also be discussed during the meeting.
Demand of removal of GST on Health Insurance products or making the GST paid on Insurance Premiums eligible for Input Credit benefits. Demand for considering General Insurance services to SEZ Units covering SEZs employees as ‘Zero Rated service’.
Talking to Bizz Buzz, Basant Das, a New Mumbai-based practising Cost and Management Accountant says, “Industries are expecting some clarification through the meeting regarding the recent GST Notices on Cross Border Intra-Group Transactions to IT and aviation sector companies.”
Though a matter of concern for industries, GST on Online Gaming’s full bet value is unlikely to be discussed in the meeting as the matter is sub judice before the Supreme Court, he added.
Apart from announcements on rate rationalization, reduction in tax slabs, removing inverted duty structure, besides lowering the rates for online gaming, insurance, and other sectors may also figure in the forthcoming meeting.
Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India says, “While the Government had mentioned about a review of the rate structure on gaming after a period of six months, it was not taken up in the last meeting and can be discussed in the current meeting as a part of overall discussion on GST rates.”
In addition, there is a growing demand for exemption/reduction of GST rate on health and life insurance from all quarters and the GST Council is likely to consider it in the upcoming meeting.
