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The much-anticipated GST Council meeting concluded on Saturday with a slew of clarifications for various industries. However, hopes for a review of the 28% Goods and Services Tax (GST) rate on online gaming and casinos were dashed, as Finance Minister Nirmala Sitharaman confirmed that the issue was not discussed.
Nirmala Sitharaman on Saturday said the intention of the central government has always been to bring petrol and diesel under GST, and it is now up to the states to come together and decide on the rate.
The GST Council will have to reconstitute three Group of Ministers (GoM) under it as new ministers from 11 states joined the body on Saturday.
The GST Act will now have provisions to recognise general practice in trade to consider cases of non-levy or short-levy. However, contrary to speculation, this will not provide any relief to online gaming companies, though some experts feel the proposed section has the potential to do so.
CBIC is all set to come out with detailed clarification regarding the applicability of GST on corporate guarantees by related parties for loans from banks or financial institutions.
Finance Minister Nirmala Sitharaman on Saturday underlined Centre’s support to states through timely tax devolution and GST compensation arrears to stimulate growth.
The Goods and Services Tax (GST) Council in its Saturday meeting has approved several compliance measures, aiming at reducing tax litigation and enhancing ease of business across the sectors.
While deciding to do away with the anti-profiteering clause, which mandates sellers to pass on the benefits of tax cuts.
GST Council on Saturday decided to exempt all hostel fees, platform ticket, railway waiting room and golf cart charges as well as employee stock options from payment of tax, while reworking the system to register for the tax regime to check frauds by bogus entities.
GST Council’s decision to not levy tax on co-insurance premium and reinsurance commission retrospectively will be a consolation for general insurance companies, experts said.