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GST Council to Review 28% Tax on Online Gaming

Updated: Jun 14, 2024 06:16:10pm

GST Council to Review 28% Tax on Online Gaming

New Delhi, Jun 14 (KNN) The Goods and Services Tax (GST) Council is expected to consider a review of the 28 per cent tax levied on online gaming at its upcoming meeting on June 22 in New Delhi.

The council had agreed to revisit this tax rate after six months of implementation, which came into effect on October 1, 2023.

In addition to the online gaming tax review, the council is likely to discuss clarifications on several procedural matters raised by the industry.

These include matters related to related-party transactions, employee stock option plan (ESOP) taxation, corporate guarantees, and inverted duty structures in sectors like textiles and fertilisers.

The fitment committee's recommendations on rectifying the inverted duty structure for 15 items may also be taken up during the meeting. However, a broader process of rate rationalisation could be deferred to a later date.

The council may reconstitute the group of ministers (GoM) on rate rationalisation, currently headed by Uttar Pradesh Finance Minister Suresh Kumar Khanna.

The GoM has not met since its formation in November 2023 and could be given a fresh timeline to finalise its report.

Other agenda items expected to be discussed include bringing natural gas and aviation turbine fuel under the GST regime and clarifying the levy of tax on the secondment of employees.

The GST Council's meeting on June 22 will be its first since October 7, 2023, and industry stakeholders are anticipating clarifications on critical issues to streamline procedures based on their feedback.

(KNN Bureau)


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