GST Council meeting may be delayed, affecting reforms

Oct 19, 2022 | GST FAQ, News | 0 comments

GST Council meeting may be delayed, affecting reforms

It is almost four months since the last meeting took place but there is still no indication of when the next meeting will happen. Technically, the meeting should be held at least once in three months. Experts feel that delay in holding the meeting is likely to have an impact on reform measures and new initiatives under GST.

Rule 6 of the Procedure and Conduct of Business Regulations of the Goods and Services Tax (GST) says “The Council shall meet at least once in every quarter of the financial year.” Going by this rule, the next meeting should have taken place by September 30.

A key reason for not fixing a date is a delay in the reworking of the report by a group of ministers (GoM) on online gaming, Casinos & Horse racing. This along with a report by another GoM on the setting of GST Appellate tribunals is a key agenda item to be taken up in the next meeting.

The last meeting took place on June 28 and 29. At the end of that meeting, it was announced that the next meeting will take place during the first week of August at Madurai. Since then, there was no information about when exactly the meeting will take place.

while the uncertainty qua taxation of the online gaming industry is leading to a flurry of tax claims thereby increasing litigation, “the delay in constitution of the GST Appellate Tribunal and absence of a national appellate forum for advance rulings is adding to the already overburdened dockets of the Courts.”

Council should look into the extension of GST exemption to the logistics industry, given that GST has been made applicable to transportation services involving the movement of goods from India to outside India w.e.f. 1 October 2022. “The withdrawal of exemption has put the Indian logistics service providers at a disadvantageous position as compared to foreign service providers,

The pending list includes GST rate rationalization, accumulation of ITC due to the inverted duty structure on the textiles segment, etc. “Delay in adopting corrective measures for the textile industry is causing huge blockage of working capital of the businesses, besides encouraging imports of the synthetic textiles,” the term of the National Anti-profiteering Authority is coming to end by next month and many of its rulings have been challenged in the court.
Source = https://www.thehindubusinessline.com/economy/delay-in-gst-council-meeting-affects-online-gaming-casinos-horseracing-and-other-sectors/article66026426.ece

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