In the upcoming meeting, the Council is expected to take up several long-pending matters for discussion as follows.
Setting up of the GST Appellate Tribunals (GSTATs)
One of the key issues the Council will likely address this time is the setting up of the GST appellate tribunals or GSTATs. Establishing GSTATs has now been a long-pending demand by taxpayers and is expected to reduce the burden on both taxpayers and courts by streamlining and expediting indirect tax litigations. At present, taxpayers go down the long, expensive route of filing appeals in high courts or paying their GST demands under protest. If GSTATs were to be set up, they would be the second forum of appeal. They would also serve as a common forum for dispute resolution between the Centre and the states.
It would be almost an entire year since the GST Council formed a six-member Group of Ministers (GoM) to resolve issues surrounding the setting up of the GSTATs. If the GoM’s report is ready by next month, it is likely that the Council will discuss the modalities of setting up GSTATs, such as the number of benches, locations, qualifications of the members, and more, in the upcoming Council meeting.
GST on Casinos, Online Gaming, and Horse Racing
One of the other important topics for discussion that the Council is expected to pick up in the next meeting is the taxability of winnings from casinos and online gaming. There was a GoM set up last year to deliberate the taxation on casinos, online gaming, and horse racing. At present, online gaming is taxed 18% for skilled games without betting and 28% on games of chance, such as betting and gambling. While the GoM decided on a 28% GST rate on all the earnings from all three, there was no consensus reached on the base value for applying the tax rate. This could be why the GST Council had to table the discussion in the previous meeting held in February 2023. However, the upcoming Council meeting could solve the conundrum surrounding this other long-pending issue. Amendments to the GST Law to Factor in the Latest e-Invoicing Timelines
It came as a surprise to enterprises last month when the GST portal announced that there would be a seven-day time limit implemented for reporting invoices to the Invoice Registration Portal (IRP). Even though it’s been over two years since the implementation of e-invoicing, until now, there has been no time limit for generating e-invoices. This created issues as taxpayers would consolidate and generate e-invoices at a time for a week or even a month and sometimes resort to even backdating their e-invoices.
At present, the GST portal has announced that the seven-day limit will apply only to taxpayers with a turnover of Rs.100 crore and more. However, while the GST and e-invoicing portals can go ahead and implement this validation, it is likely that the GST law will be amended in this regard so that the law and the portals both align. Hence, the GST Council may take this new mandate up for discussion in the upcoming Council meeting and propose an amendment to the GST law.
Automation of GST Return Scrutiny and Expansion of the Taxpayer Base
The Finance Minister, Smt. Nirmala Sitharaman recently asked the Central Board of Indirect Taxes and Customs (CBIC) to automate the scrutiny process of GST returns and implement a plan to increase the taxpayer base through the enhanced use of technology. After a review with senior officials of the CBIC, the FM directed the CBIC to study the cases already booked, form a comprehensive analysis, and come up with recommendations on tech-based solutions.
Some of the other matters discussed in the review covered employee welfare, grievance redressal, and the improvement of taxpayer services. While the CBIC is expected to take measures on this account, there is a chance that this could come up for discussion in the upcoming Council meeting, especially on the matter of return scrutiny and revenue augmentation.
While a date has still not been announced for the Council meeting next month, there is a high chance that the meeting will take place to discuss some of the pending matters and GST procedural changes. There could also be GST rate revisions and clarifications, such as on millet and cement, that are also expected to be taken up for discussion.
(The author is the founder and CEO at Clear, formerly known as ClearTax)