GST Council must meet every quarter: Tamil Nadu FM | The Financial Express

GST Council must meet every quarter: Tamil Nadu FM

Thiagarajan expressed concerns over the way the GST Council is functioning.

GST Council must meet every quarter: Tamil Nadu FM
On August 18, the GoM on tribunals convened by Haryana deputy chief minister Dushyant Chautala finalised that the GST Appellate Tribunal be set up with a principal Bench in New Delhi and similar Benches at various states.

Calling for adherence to the norm of quarterly meeting of the GST Council, Tamil Nadu finance minister P Thiagarajan said on Monday said that there is a lot of scope to improve the working of the five-year old indirect tax regime.

The GST Council, which met in June, is yet to meet even though four months have gone by. Officials attribute the delay to two different group of ministers (GoM) — one on online gaming and another on GST tribunals — who have not submitted their reports as yet.

Thiagarajan expressed concerns over the way the GST Council is functioning. “Are we dedicating right amount of resources, human and technology, and analytics? I have sincere concerns about all this. Look at how often the council meets, how committees deliver report.. I must say there is still a lot of room for improvement relative at least to the professional career I came from,” Thiagarajan, a former investment banker, said at the TIOL Congress 2022.

He pointed out that many GoMs or sub-committees are not meeting often. With no unanimity about taxing at the rate of 28% on the full value of the consideration, without making a distinction between games of skill or chance, the GoM led by Meghalaya chief minister Conrad Sangma has sought legal opinion on whether the prize money in online gaming and horse racing is covered within actionable claim or not, before submitting the additional report. However, so far the report has not been submitted even though the GoM was planning to do so by September 16.

Also read: At Rs 1.52 trn, GST mop-up second highest in October

The GoM, in its first report, had recommended that in the case of online gaming, the activities should be taxed at 28% on the full value of the consideration, by whatever name such consideration may be called, including contest entry fee, paid by the player for participation in such games. Since GST is levied on online skill-based gaming at 18% currently on the platform fee (about 20% of the contest entry fee), the tax incidence on the gaming industry will rise.

On August 18, the GoM on tribunals convened by Haryana deputy chief minister Dushyant Chautala finalised that the GST Appellate Tribunal be set up with a principal Bench in New Delhi and similar Benches at various states.

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First published on: 08-11-2022 at 02:45 IST