GST Council to review 28% levy on online gaming, horse racing, and casinos at upcoming meeting

The Goods and Services Tax Council is set to meet on October 7 to review the implementation of the 28% levy on online gaming, horse racing, and casinos, as well as consider pending proposals for rate restructuring in items such as millets and the establishment of the GST Appellate Tribunals. The council may also discuss the reconstitution of the group of ministers on rate rationalization and the pending reform agenda.

The GST Council is a constitutional body responsible for making recommendations to the Union and State Governments on issues related to GST. The council is chaired by the Union Finance Minister and comprises the finance ministers of all states and union territories.

The council may take up the matter of reducing the GST rate on millet-based mixes to 5% or nil from 12% or 18% to promote millet consumption. The council may also consider setting up GST Appellate Tribunals in various states to reduce the pendency of cases.

Sanjay Chhabria, Director of Indirect Tax at Nexdigm, highlighted the GST framework's need for simultaneous taxation by both the Centre and States to Business Today. He emphasized that although amendments in GST legislation by Parliament became active on October 1, 2023, corresponding changes in State and Union Territory GST laws haven't been enforced yet. This delay could pose significant challenges for taxpayers. Chhabria suggested the GST Council temporarily suspend implementation, urging Member States to promptly pass the amendments.