First GST Council Of Modi 3.0 To Meet On June 22
The announcement from the GST Council followed a day after Finance Minister Nirmala Sitharaman assuming her position for the second consecutive term.
The 53rd Goods and Services Tax Council meeting, the first since Prime Minister Narendra Modi began his third term, is scheduled for June 22 in New Delhi. This was announced on the social media platform X, previously known as Twitter, on Thursday.
The announcement followed a day after Finance Minister Nirmala Sitharaman assumed her position for a second consecutive term. According to sources cited by NDTV on Wednesday, Sitharaman may present the Union Budget 2024–25 during the third week of July.
The previous GST Council meeting in October saw finance ministers from all states and union territories approve several decisions, including clarifications on technical and procedural matters, exemptions for millet-based powdered foods and coastal cruises, and establishing a clear tax rate for extra-neutral alcohol used in industrial processes.
The council also addressed the contentious issue of tax demand notices issued to online gaming companies. There was a divide between the Centre and the states of Delhi and Goa regarding the interpretation of a retrospective levy, particularly concerning a 28% tax rate, which the Union government argued had always been in effect.
Anticipated Topics Of Discussion
While the agenda for the upcoming GST Council meeting is still awaited, industry expectations include discussions on rate rationalisation and a review of the GST rate on online gaming.
Clarifications on the taxability of ESOPs and corporate guarantees are also anticipated due to recent litigation. He added that businesses are looking forward to new regulations on ISD and their implementation date. KPMG's indirect tax head and partner, Abhishek Jain.
The meeting could consider including low-impact petroleum products, such as natural gas, within the GST ambit, Deloitte India's Partner MS Mani said. The recent release of the draft of the Central Excise Bill has revived similar expectations, he added.
“The stability in GST collections, along with the fact that GST changes are outside the Union Budget proposals, should provide an impetus for the GST Council to address various issues,” Mani said.
Gross GST revenue collection in May 2024 was Rs 1.73 lakh crore, representing 10% yearly growth. In April, the highest-ever monthly GST collection was recorded at Rs 2.1 lakh crore.
