New Delhi: The 50th meeting of the Goods and Services Tax (GST) Council was held on 11 July 2023 in New Delhi. The meeting was chaired by Finance Minister Nirmala Sitharaman and attended by the finance ministers of all states and union territories.
The council decided to impose a 28% GST on online gaming, casinos, and horse racing. The council also decided to set up a GST Appellate Tribunal in each state and union territory. The tribunals will hear appeals against orders passed by the GST authorities. Ashneer Grover too raised concerns about Centre’s decision to impose 28% tax of funds that online gaming companies collect. The former BharatPe founder also owns fantasy gaming platform Crickpe, said that the move will murder the fantasy gaming industry and it’s time for entrepreneurs to enter politics.
“RIP- Real money gaming industry in India. If the government is thinking people will put in Rs. 100 to play on Rs. 72 pot entry (28% Gross GST); and if they win Rs. 54 (after platform fees)- they will pay 30% TDS on that- for which they will get free swimming pool in their living room the first monsoon- not happening!”, tweeted Grover.
The council also decided to rationalize the rates of certain items, including papad, kachri, and printing of books. The rates of these items will be reduced from 18% to 5%.
The council also decided to set up a group of ministers to look into the issue of inverted duties. Inverted duties occur when the GST rate on inputs is higher than the GST rate on outputs. This can lead to cascading effects, where the GST burden is passed on to consumers.
In addition to the agenda items mentioned above, the council also discussed the possibility of introducing a reverse charge mechanism for certain services, the need to simplify the GST return filing process, and the need to improve the coordination between the GST authorities and the states
The council will continue to meet regularly to discuss issues related to the GST system. The goal of the council is to make the GST system as efficient and fair as possible.