FM’s Recommendations Relating To Changes In GST Rates On Supply Of Goods And Services
The Council directed that the Group of Ministers on Casino, Race Course and Online Gaming re-examine the issues
The GST Council’s 47 th meeting was held in Chandigarh on 28 th and 29 th June, 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure:
I. Recommendations relating to GST rates on goods and services
A. Rate Rationalization to remove inverted duty structure [Approval of recommendations made by GoM on rate rationalization]
| S. No. | Description | From | To |
| GOODS | |||
| Printing, writing or drawing ink | 12% | 18% | |
| Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc | 12% | 18% | |
| Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps | 12% | 18% | |
| Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc; Pawan Chakki that is Air Based Atta Chakki; Wet grinder; | 5% | 18% | |
| Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery | 12% | 18% | |
| LED Lamps, lights and fixture, their metal printed circuits board; | 12% | 18% | |
| Drawing and marking out instruments | 12% | 18% | |
| Solar Water Heater and system; | 5% | 12% | |
| Prepared/finished leather/chamois leather / composition leathers; | 5% | 12% | |
| Refund of accumulated ITC not to be allowed on flowing goods: Edible oils Coal | |||
| Services | |||
| Services supplied by foreman to chit fund | 12% | 18% | |
| Job work in relation to processing of hides, skins and leather | 5% | 12% | |
| Job work in relation to manufacture of leather goods and footwear | 5% | 12% | |
| Job work in relation to manufacture of clay bricks | 5% | 12% | |
| Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. | 12% | 18% | |
| Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof | 12% | 18% | |
| Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof | 5% | 12% |
Besides, a host of changes have been brought about in the GST regime.
GST on Casinos, Race Course and Online Gaming
The Council directed that the Group of Ministers on Casino, Race Course and Online Gaming re-examine the issues in its terms of reference based on further inputs from States and submit its report within a short duration.
Mr. Mohan Shukla a senior professional who is tightly working with Top Corporates – Indian & Overseas – helping to navigate Public Policy-related issues, Government Relations, Strategy, Regulatory & Compliances etc. said ““the GST Council today deferred the decision on proposal to increase the GST on online gaming from 18% to 28% and asked the Group of Ministers (GOM) on Casinos, Lottery, Online Gaming and Horse Racing chaired and convened by Conrad Sangma to again submit its report to the GST Council by 15th July 2022. More importantly, the Council treats all segments i.e., Casinos, Online Gaming, Horse racing etc. on the common thread of Betting and Gambling, the rationale of which is indeed contravening to global best practices and rulings of the Karnataka, Rajasthan, Punjab & Haryana and Bombay High Courts as well as the Supreme Court that have emphasized that the Games of Skill cannot be construed as gambling or betting”.
“Considering that this sunrise sector has immense potential, it is crucial that the Council and GOM understand the salience of the Games of Skill and take a balanced decision considering the global best practices on taxation related aspects,” said Mr. Shukla, who is also the Managing Director of White Dolphin Media.
