The GST Council might provide more information about the tax rate that is applicable to goods sold at movie theatres.
New Delhi: The 50th meeting of the Goods and Services Tax (GST) Council is scheduled to be held on July 11, 2023. The meeting is likely to discuss a number of important issues, including the taxation of online gaming, the definition of utility vehicles, and the tightening of norms for registration and claiming input tax credit (ITC).
Vivek Johri, the chairman of the Central Board of Indirect Taxes and Customs (CBIC), stated that any future revisions to the GST rates would need to be carefully reviewed and may need to be implemented gradually in a previous interview with Moneycontrol. He stressed the importance of revenue efficiency and suggested care when it came to rate rationalisation to maintain the stability of consolidated revenues.
50th GST Council Meeting: Agenda Items
1. Multiplex food and beverage taxes
The GST Council might provide more information about the tax rate that is applicable to goods sold at movie theatres. It may be determined whether multiplexes should be taxed at 5% or 18% given that different multiplexes have different business practises, as per a report in BQ Prime.
2. Details MUV Taxability
The council is likely to clarify the definition of multi-utility vehicles and crossover-utility vehicles for the tax levy of a 22% compensatory cess over and above the 28% GST rate. At the 48th council meeting in December 2022, a similar explanation of the definition of SUVs was given, as per new agency PTI.
3. ITC Claims
The GST Council is likely to discuss a new rule that would require businesses to explain the reasons for any excess ITC claimed. If the businesses cannot explain the excess ITC, they will be required to deposit the amount with the exchequer.
4. Rate rationalisation
The reorganisation of the group of ministers (GoM) on rate rationalisation is likely to be a topic of significant discussion at the GST Council meeting. Since Karnataka’s new government took office, the job of the mentioned GoM’s convenor has remained empty, a report in the Mint said.
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5. Taxation On Online Gaming
Taxation on internet gaming, horse racing, and casinos would be covered in the report of the group of eight state finance ministers that Conrad Sangma, the chief minister of Meghalaya, called together. The GoM has deferred to the Council on the question of whether GST should be levied at a rate of 28% on the whole face value of bets placed by players at online casinos, horse races, and gaming venues, or on the total winnings from gaming.
