MM TAX CLUB

During the GST Council meeting on February 18, the issue of creating appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha is likely to be discussed.

At the GST Council meeting, chaired by Nirmala Sitharaman and including her state counterparts, the report of the panel of ministers on online gaming and casinos may not be discussed.

Those topics, which were not discussed by the GST Council at its last meeting on December 17, 2022, will top the agenda at the 49th GST Council meeting on February 18. A report by the Group of Ministers (GoM), led by Odisha finance minister Niranjan Pujari, on checking tax evasion by the pan masala and gutkha industries will be discussed.

Dushyant Chautala, Haryana's deputy chief minister, chaired the GoM on Goods and Services Tax Appellate Tribunals last July. According to the GoM, the tribunals should have two judicial members and one technical member each from the Centre and the states, as well as a retired Supreme Court judge as president.

It is unlikely that the report of the panel headed by Meghalaya chief minister Conrad Sangma on online gaming will be discussed. Before the report can be discussed by the Council, it must be circulated to states and submitted to the Union finance minister.

A GST of 28 percent had been agreed upon by the GoM in its last meeting in November. It was, however, decided by the GoM to refer all suggestions to the GST Council for a final decision since there was no consensus as to whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants.

Online gaming currently attracts 18 percent GST. Fees charged by online gaming portals are subject to tax, which is based on gross gaming revenue.