51st GST Council Meeting

Source: PIB
GS III: Economy

Overview

1. News in Brief
2. About 51st GST Council Meeting
3. About GST Council

Why in News?

51st GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via video conferencing in New Delhi.

News in Brief

• The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
• The GST Council in the 50th meeting held on 11.07.2023 deliberated on the Second Report of the Group of Ministers (GoM).

About 51st GST Council Meeting

• The 51st meeting suggested changes to the CGST Act of 2017 and the IGST Act of 2017, including changes to Schedule III of the CGST

  

  Act, 2017.

• This aims to make it clearer how supplies for casinos, horse racing, and online gaming are taxed.
• The Council also recommended inserting a specific provision in IGST Act, 2017 to provide for liability to pay GST on the supply of online money gaming by a supplier located outside India to a person in India.
• When assessing the worth of online gaming resources and potential payout opportunities within casinos, it is recommended that the focus be placed on the specific amount that the player or their representatives will be paying to the supplier.
• This should exclude any winnings that have already been used to place bets.
• By prioritizing this approach, a more accurate and effective evaluation can be made of the true value of each bet placed.

About GST Council

• The Goods and Services Tax (GST) Council is a constitutional body in India.
• Responsible for making recommendations on all matters related to the Goods and Services Tax.
• It was constituted under Article 279A of the Indian Constitution.
• Its primary purpose is to ensure a smooth and efficient implementation of the GST across the country.
• The GST Council is chaired by the Union Finance Minister of India and consists of the finance ministers or designated representatives of all the states and union territories.
• The Council makes decisions by way of voting, with the Central Government having one-third of the total votes cast, and the states and union territories together having two-thirds of the votes.

Key functions and responsibilities of the GST Council

1. Tax Rate and Structure: The Council recommends the tax rates for goods and services under different categories, including the standard rate, the higher rate, the lower rate, and exempted goods and services.
2. Threshold Limits: It decides the threshold limits for GST registration, which determines whether a business is required to register for GST based on its turnover.
3. Compensation to States: The Council determines the modalities for compensating states for any revenue loss they may incur due to the implementation of GST.
4. IGST Apportionment: The Council recommends the apportionment of Integrated Goods and Services Tax (IGST) between the Central Government and the State Governments/Union Territories.
5. GST Rules and Regulations: It makes recommendations regarding the GST rules, regulations, and procedures, with the aim of simplifying compliance and administration.
6. Addressing Issues: The Council addresses any issues, disputes, or challenges that may arise during the implementation of GST and takes necessary measures to resolve them.
7. Review and Revision: It periodically reviews the GST rates and other aspects to ensure the tax system remains effective and relevant.

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