48th Meeting of GST Council

The 48th Goods and Service Tax (GST) Council meeting at the national capital Delhi on 17 December has concluded without any decisions on the highly anticipated GST Appellate Tribunals, tax rate applicable on gutkha and pan masala.

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Issues On the table:

Decriminalisation of offences: Increase in monetary threshold, from the current ₹5 crore to ₹20 crore, for launching legal proceedings against offenders. Additionally, the fee payable by a taxpayer for compounding of GST offences be lowered to 25% of the tax amount, down from the up to 150% currently.

Tax evasion: A report on tax evasion by the tobacco industry (pan masala, gutka), along with a possible mechanism to curb the evasion.

GST on online gaming: As proposed by a Group of Ministers (GoM), increasing the indirect tax on online gaming, casinos, and horse racing, to 28%, from the existing 18%.

GSTATs: Setting up GST Appellate Tribunals (GSTATs) with a retired Supreme Court judge as President, and also consisting of two judicial members, and technical members (from the Centre and states).

Rate applicability: The Council may also give clarity on the rate applicability on certain goods and services.

Key Highlights of 48th GST Council Meeting:

• Threshold limit of for launching of GST offences increased to Two Crores except in case of fake invoices.
• 5% GST Ethyl Alcohol applicable to Blended Petrol Decriminalized certain offences of Obstruction of services by officers, failure to supply information etc.
• E-Com Portals can supply goods of Unregistered Suppliers
• No Claim Bonus offered by Insurance Companies does not attract GST
• No Decision on GST Appellate Tribunal Both GoM Reports on Pan Masala, Gutka and GSTAT to be discussed in Next Meeting.