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GSTcess has been increased from current 20 percentto 22 percentin MUVs that meet the length, engine criteria. This will increase tax incidence on companies by two percent, a governmentofficial pointed out, noting thatthey may decide to pass it to consumers or reduce the margins slightly.
Finance Minister Sitharaman's press briefing has concluded. The 28 percent tax on online games and casinos was the key highlight of today's meeting. The Council has also decided to lower the rates on fish soluble paste and LD slag from 18 percent to 5 percent, and on zari thread and yarn from 12 percent to 5 percent.
The Council furtherdecided to exempt GST on the import of the cancer medicine Dinutuximab and Food for Special Medical Purposes (FSMP), which isused in the treatment of rare disorders.
GST appellate tribunal should start functioning in this fiscal year, Revenue Secretary Sanjay Malhotra said. The tribunals, in the first phase, will be set up mostly in the state capital cities.
Private bank account details of the person seeking GST registration will now be mandatory, CBIC Chairman Vivek Johri said. The pilot of biometric authentication for GST registration is put on formal footing, he added.
In the drive undertaken by the taxation department against fake input tax credit, a total tax evasion to the tune of Rs 17,000 crore was found, Revenue Secretary Sanjay Malhotra said.
GST Council has clarified that the GST rate on food items and beverages in cinema hallswill befive percent, the revenue secretary said, while speaking to reporters.
GST appellate tribunals in first phase are to be mostly set up in capital cities of states and where high court benches are there, FM Sitharaman said.
"The GST Council’s intention is not to hurt the online gaming industry or states with casinos. A few states shared their concerns. But there is a moral question: can we encourage them more than essential goods? So I am proud to say that the GST Council discussed and understood the matter deeply and took a decision which had been pending for 2-3 years. The issue is very complex," Finance Minister Sitharaman said.
Finance Minister Nirmala Sitharaman said the decisions related to 28 percent GST on online gaming and casinos was not aimed at targeting any particular industry.The decisions were intensive, and was taken after consultation with all the members, including those representating states like Goa and Sikkim where casino forms a key part of the tourism sector, she added.
The finance ministers of Delhi and Punjab raised the issue of GSTN's inclusion under the Prevention of Money Laundering Act, Finance Minister Sitharaman said, while responding to a query from Moneycontrol. The officialsexplained to them after they raised their concerns, she added.
Under the recent finance ministrynotification, only ED will share information with GSTN, and not the other way, the revenue secretary further noted at the press conference.
According to Finance Minister Sitharaman, a presentation was made on IT system reforms during the meeting of the GST Council members held earlier today."GST Council’s discussions today on online gaming were substantive. The Council will ensure it is in touch with IT ministry. We will align with the regulation the ministry brings in," she said.
