GST Council to review 28% tax on online gaming
The Goods and Services Tax (GST) Council is set to review the 28% tax imposed on online gaming in its 53rd meeting on June 22. The council's secretariat announced the meeting date on X. This will be the first meeting of the council following the Lok Sabha elections. The detailed agenda of the meeting is expected to be finalized within the next few days.
Council to discuss inclusion of natural gas under GST
The council is expected to discuss proposals to include natural gas and aviation turbine fuel under the GST. The council will also provide clarifications on significant matters such as related-party transactions, employee stock option plan (ESOP) taxation, corporate guarantee, and inverted duty structure in textiles and fertilizers. The last meeting of the GST Council took place on October 7, 2023.
Review of online gaming tax follows previous amendments
The review of the 28% GST on online gaming follows amendments made in July and August. During these meetings, online gaming, casinos, and horse racing were included as taxable actionable claims attracting a 28% tax. The decision to impose a 28% GST on the full value of bets for online gaming companies came into effect from October 1, 2023. The council may decide to fast-track the process and set a timeline for the panel to submit a final report.
Panel to suggest rate rationalization
Another key issue before the GST Council is rate rationalization. A panel under Uttar Pradesh Finance Minister Suresh Kumar Khanna has been mandated to suggest required rate rationalization. The Group of Ministers (GoM) on GST rate rationalization was set up in September 2021 by the GST Council and had submitted an interim report in June 2022, proposing changes in tax rates for some goods and services. The GST regime has tax slabs of zero, 5%, 12%, 18%, and 28%.
