The GST Council will meet for the 48th time on Saturday. The agenda for the meeting is not exhaustive; the most talked about item concerning the Group of Ministers’ (GoM) report on online gaming, casinos and horse racing will not be taken up.

“Union Finance Minister Smt. @nsitharaman will chair the 48th GST Council meeting via VC (video conference) from New Delhi tomorrow. The meeting will be attended by Ministers of State for Finance besides Finance Ministers of States & UTs & Senior officers from Union Government & States,” a tweet by the Finance Ministry said on Friday. Rule says GST Council should meet once in three months, but Saturday meeting is taking place after a gap of 5 months due to various reasons such as States poll. This is second time when meeting is happening after of gap of more than three months.

Officials said the meeting would discuss two reports by GoM. One report is related to recommendation for setting up GST Appellate Tribunal while second report is about suggestions to plug leakage of tax revenue in pan masala and guthaka industry. Though the report by another GoM on with online gaming, casinos and horse racing submitted its report on Thursday, a senior Government official confirmed that it will not be taken up as there is very little time for notice to be given to members.

GST offences

One key item will be the proposal related to decriminalisation of GST offences. Currently, GST evasion of ₹5 crore or more attracts a jail term of 5 years. It will be 3 years with a fine for offences involving evasion between ₹2-5 crore and 1 year in case of evasion amounting between ₹1-2 crore. In case of repeated offence, jail term could be 5 years.

Experts think that minor and wilful offenders are being seen under the same lens, which mainly hurts small businesses. Such provisions will be discarded by abolishing the jail term below the threshold limit. Now, offences involving evasion of ₹20 crore or more may invite prosecution, while below that threshold option of compounding can be given. Also, prosecution may only be initiated in extreme cases, where wilful evasion of GST and misuse of input tax credit can be established. 

Amendments expected

Once the proposal of GST law decriminalisation is approved by the GST Council, amendments to the Central GST Act are expected to be introduced in the Budget session of Parliament, following which States would be required to amend their state GST laws in their legislative assemblies.

Officials also said the Council is expected to take up discussion on the feasibility of implementation of the earlier recommendation of e-way bill generation for movement of gold and precious stones. It will also take up pending recommendations of the fitment committee related to some goods in the highest 28 per cent slab such as sports utility vehicles along with reviewing the GST revenue position of all states/union territories and the Centre.

Published on December 16, 2022