The 52nd meeting of the Goods and Services Tax Council could take up technical matters like offering clarity on the slew of demand notices and a possible rate exemption on millet-based foods, according to an official.
The fitment committee report has maintained the status quo on many issues that were raised by the industry over time, the official with knowledge of the matter told BQ Prime on the condition of anonymity.
The meeting is scheduled to take place in New Delhi on Oct. 7.
Likely Agenda
Millet-based foods in powdered form are likely to get an exemption, according to the official.
Currently taxed at 18%, millets have been promoted under India's G20 presidency. The year 2023 was also declared the International Year of Millets by the United Nations General Assembly in 2021.
A series of demands over an alleged tax shortfall, extending from the gaming industry to the insurance and auto sectors, have been issued by GST authorities recently.
The council may discuss whether these tax demand notices should be ratified, the official said.
From Oct. 1, a 28% GST became effective on the full face value of deposits made at the entry point for online gaming, horse racing, and casinos. However, tax-demand notices for periods prior to this period are currently being disputed by the industry.
Many industry representations for a change in the GST rates have also not passed muster with the fitment committee. These include EV batteries, zari thread, and compensation cess on cigarettes, according to the official.
The fitment committee is a group of revenue officials from the government and states who examine representations regarding the rates of goods and services.
Also up for consideration is a recommendation to allow practicing advocates of a particular tax area to be eligible for the role of a judicial member on the state appellate tribunals, according to the official.
Taxability of bank guarantees given by senior company executives like directors or promoters to subsidiaries as a supply of service is also likely to be up for consideration, the official said.
A report by the Economic Times also said the valuation for taxation regarding this could either be the remuneration in the case of a director or 1% of the total guaranteed amount.
Facilitatory reforms like affording additional time for filing returns and filing appeals against demand order is also expected to be considered.
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