Lasted for two days GST The council meeting ended today. Finance Minister Nirmala Sitharamane (Union Finance Minister Nirmala) Briefed the press conference after the meeting on the decisions taken at the meeting. According to the finance minister, 4 reports of the group of ministers were discussed. In his view, there has been no discussion on rationalization. Each rationalization panel has been given an extension. At the same time, no decision has been taken to increase the GST rebates of the states. The recommendation regarding inverted duty has been accepted. There have also been reports of betting, gambling and casinos. The decision on online gaming casinos and horse trading has also been postponed.
Decision on online gaming, casino deferred
The finance minister has informed that GOM will report on online gaming casinos by July 15. Talking to media, the finance minister said that the casino was discussed in great detail in the meeting in which many issues were considered. According to the finance minister, the money in the casino is converted into a chip and after use, the remaining chip is returned and cash is taken. In such a case, tax will be levied on the initial payment or on the amount spent after returning the chip. Casinos, on the other hand, offer a variety of sports and food services, whether sports and food and beverage services will be taxed separately or the same tax will be levied first. According to the finance minister, suggestions can be found in the report on all these matters.
Inflation will affect these things
According to the report, on the first day of the meeting on Tuesday, the GST Council took several major decisions. According to him, pre-packaged and labeled flour and rice, even if unbranded, will be taxed at 5 per cent. Apart from this, pre-packaged and labeled food items like meat, fish, curd, cheese and honey will also be taxed at 5 per cent. That means all these food items are going to get expensive now.
Staying in a budget hotel will be expensive
Flour-rice, meat and fish as well as jaggery, exotic vegetables, uncooked coffee beans, unprocessed green tea, wheat bran and rice bran are excluded. One more important decision taken in the first day’s meeting will now make it more expensive to stay in a budget hotel.
In fact, hotel rooms costing less than Rs 1,000 per day will be taxed at 12 per cent, which currently falls under the tax-exempt category. The meeting also approved a proposal to levy GST on fees charged by banks for issuing checks. If we look at the report released so far on the decisions taken at the GST Council meeting, unpacked, unlabeled and unbranded goods are exempted from GST.
Gifts to small online merchants
At the meeting the GST Council agreed to waive mandatory registration for small online merchants with the objective of promoting the unorganized sector. The changes to the law will take effect on January 1, 2023. The council said the decision would benefit about 120,000 small businesses. The meeting also allowed composition dealers to make interstate supplies through e-commerce operators.
Composition dealers are those whose turnover is Rs. Up to 1.5 crores. They will have to pay GST at a flat rate with Input Tax Credit (ITC). Currently, vendors supplied by e-commerce operators (ECOs) are required to register, even if their total annual turnover is Rs. 40 lakh or Rs. Less than the limit of 20 lakhs. Vendors working offline get Rs. 40 lakh or Rs. Exemption from registration for supply of goods and / or services up to Rs. 20 lakhs. Live TV
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