The GST Council consisting of members from the central and state government plays a very important role in molding India’s tax regime. In its milestone meeting held recently on July 11, 2023, under the supervision of the Union Finance Minister of Nirmala Sitharaman (the chairman of the GST Council).
This meeting aimed to improve the GST framework leading to benefit the taxpayers. During this meeting, the GST Council addressed the issues that required attention. It includes simplification of tax rates processing and penalties.
Key Changes Made In The Meeting
Changes In The GST Rates Of Different Goods
- The GST rates on uncooked/ unfried snack pallets have been reduced from 18% to 5%.
- It provided exemptions on the food and pharmaceutical imports used for the treatment of any rare disease. It is in a way helping and boosting the healthcare sector.
- The GST rates on the imitation of the Zari thread known by any name in the trades have been reduced from 12% to 5%.
- To encourage environmental protection, the rate of LD slag has been reduced to 55 from 18%.
- The supply of any type of raw cotton is taxable under the Reverse Tax Mechanism.
- Also, it has been decided to reduce GST on the fish-soluble paste.
Changes In The GST Of Different Services
- GST exemptions to the private organizations providing services of satellite launch such as ISRO to boost and encourage startups.
- It is clearly clarified that any services provided by the director of the organization to his/her company or the body corporate in his personal capacity such as renting out his/her immovable property are not taxable. If he/she does any of this in his professional capacity of being the director of that organization is taxable under Reverse Charge Mechanism.
- The tax value has been reduced for the food and beverages served under the cinema hall as taxable under the restaurant services.
- As a trade-friendly way. It has been concluded that GTA (Goods Transport Agency) is not required for the declaration of payment of GST for the forward charge every year. And for optimizing that option the late date is 31st March of the preceding F.Y.
Reports For Casinos, Races, And Online Gaming
- All three things: casinos, horse racing, and online gaming; are taxed uniformly at a 28% rate.
- The taxes on the chips bought in the casinos or the bets places online and on horse riding are fully taxable on their face value.
This meeting marked a milestone in the ongoing process of refining and improving India’s GST framework. The decisions taken are expected to bring positive changes, simplifying the tax processes and reducing the burden on the taxpayers.
FileMyReturn understands the importance of being up to date with the evolving GST regulations. It also provides our expert guidance to help you meet your tax obligations effortlessly.
Feel free to reach out to us for any help relating to your tax filing as we strive to make your tax filing experience smooth and hassle fee.
So, let’s embrace the changes made by the council for an efficient and transparent tax system.