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GST Council To Discuss GoM Reports On Appellate Tribunals, Tax Evasion By Gutkha Firms On February 18

In the next GST Council meeting, the report of the Group of Ministers (GoM) on checking tax evasion by pan masala and gutkha industry would be taken up for discussion

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The GST Council in its meeting on Saturday is likely to discuss setting up appellate tribunals and mechanism to curb tax evasion in pan masala and gutkha business, sources said.

The report of panel of ministers on Goods and Services Tax (GST) on online gaming and casinos may not come up for deliberation at the February 18 meeting of the GST Council, chaired by Union finance minister Nirmala Sitharaman and comprising her state counterparts.

The items, which could not be discussed by the Council in its last meeting on December 17, 2022, would top the agenda of the 49th GST Council meeting on February 18, the sources said.

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The report of the Group of Ministers (GoM), headed by Odisha finance minister Niranjan Pujari, on checking tax evasion by pan masala and gutkha industry would be taken up for discussion.

The report of the GoM on Goods and Services Tax Appellate Tribunals (GSTATs) was set up in July last year under the chairmanship of Haryana deputy chief minister Dushyant Chautala.

The GoM has suggested that the tribunals should consist of two judicial members, and one technical member each from the Centre and states, besides a retired Supreme Court judge as president.

However, the Meghalaya chief minister Conrad Sangma chaired panel report on online gaming is unlikely to come up for discussion. The report has already been submitted to the Union finance minister and it has to be circulated to states before it could come up before the Council for deliberation.

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The GoM, in its last meeting in November, had agreed on a 28 per cent GST on these segments.

However, in the absence of a consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants, the GoM had decided to refer all suggestions to the GST Council for a final decision.

Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.

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