GST Council meeting today: Here's a look at the agenda

The Council is likely to provide for mandatory physical verification of the business premises of 'high risk' applicants before granting of GST registration, as well as reduced time for submitting Pan-linked bank account details to GST authorities.

Reasons for excess input tax credit

Also, a new rule in the GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer is likely to be discussed.

The Law Committee, comprising tax officers from Centre and states, have said that where the ITC availed in GSTR-3B return exceeds the amount of ITC available in accordance with the auto-generated statement GSTR-2B by a specified threshold, the registered person may be intimated on the portal about such difference and be directed to either explain the difference or pay the excess ITC along with interest.

The committee has suggested that the provision should kick in if the difference is more than 20 percent and more than Rs 25 lakh.

GST Council is likely to take a final call on the recommendation of the Committee in its 50th meeting on Tuesday.

Taxation of online gaming, horse racing and casinos

The report of the panel of eight state finance ministers, convened by Meghalaya Chief Minister Conrad Sangma, on taxation of online gaming, horse racing and casinos is also slated to be discussed in the meeting.

The GoM (group of ministers) had a broad agreement that a 28 percent GST should be levied on all the three supplies, but a consensus eluded on taxability of online games with Goa suggesting that an 18 percent tax should be levied only on platform fees and contribution to prize pool should be tax exempt.

A final view on taxation rate as well as whether tax is to be levied on the GGR or fees charged by the platform; or on the full face value of bets put in by players of online gaming, horse racing and casinos would be taken by the GST Council.

Taxation of Multi Utility Vehicles

A clarity on taxation of Multi Utility Vehicles (MUV) or multipurpose vehicles or Crossover Utility Vehicles (XUVs) for the levy of a 22 percent compensation cess over and above the 28 percent GST is also expected.

The fitment committee, comprising central and state tax officials, has recommended that all utility vehicles, by whatever name called, would attract a 22 percent cess provided they meet three parameters - length greater than 4 metres, engine capacity greater than 1,500 cc and ground clearance in 'un-laden condition' of more than 170 mm.

Food and beverages in cinema halls

The fitment committee has also urged the GST Council to clarify that food and beverages served in cinema halls be taxed at 5 percent, and not at 18 percent as was being done in some multiplexes.

However, if the sale of cinema ticket and supply of eatables such as popcorn or cold drinks are clubbed and sold together, the entire supply should be treated as composite supply and taxed as per the applicable rate of the principal supply, which in this case is cinema ticket.

Movie tickets below Rs 100 are taxed at 12 percent, while those above the threshold attract an 18 percent GST.

Cancer medicine Dinutuximab

Import of cancer medicine Dinutuximab (Qarziba) by individuals for personal use attract a 12 percent IGST. The fitment committee said that the medicine, which costs Rs 36 lakh, should be exempted from GST as patients usually raise money through crowdfunding.

TCS liability of suppliers on ONDC

Among other things, the Council is also likely to decide on TCS liability of suppliers engaged in e-commerce trading through government's Open Network for Digital Commerce.

Satellite launch services by private players are also likely to be kept out of the GST ambit.

With inputs from agencies