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The GST Council, in its meeting on December 17 is unlikely to take up proposals related with rate and valuation for levying GST on online gaming, casinos and horse racing.
“The Group of Ministers (GoM) is yet to submit its reworked recommendations for modalities of levying GST on online gaming, casinos and horse racing. Once it submits then we need to send notice to all the members which seems to be difficult now,” a senior government official said here on Tuesday.
The agenda circulated for the meeting has not included discussion on GoM report in online gaming, casinos and horse racing.
When asked if a supplementary agenda can be circulated including the GoM report at the last moment, the official explained the process involved in preparing agenda and putting before the Council. As of now, it was very unlikely that this particular item will be taken up, he said.
Two agendas on list
Meanwhile, according to agenda circulated, the Council likely to discuss a proposal on decriminalisation of GST offences. It is also expected to take on two reports by GoM – one related with evasion of taxes by pan masala and guthka companies and other related with setting up of the GST Appellate Tribunal.
“The idea is to raise the threshold for declaring an offence as criminal, and the Council is expected to discuss a proposal on that,” a senior Government official said here on Monday.
The government recently came out with revised guidelines for compounding offences under direct taxes. Earlier, a similar arrangement was made in case of customs duty-related offences. Now, the plan is to go for decriminalisation of offences under GST
Current penalties
The proposal is to raise the threshold limit for launching criminal proceedings under GST to ₹20 crore and also the property of offenders below the set threshold will not be attached.
Currently, GST evasion of ₹5 crore or more attracts a jail term of 5 years. It is 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. Also, the Act is so draconian that it sees both minor and wilful offenders under the same lens, which mainly hurts small businesses.
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