GST Council Meeting June 22 Updates

The 53rd GST Council meeting is set to take place on June 22 in New Delhi, with Nirmala Sitharaman, the new Union Finance Minister, chairing the session shortly after assuming office.

Before the meeting, the council’s Fitment Committee, tasked with studying proposals, is likely to meet. Among the key issues under consideration are proposals from the Petroleum Ministry to bring Aviation Turbine Fuel (ATF) under GST at a rate of 5%, and to categorize natural gas at either 12% or 18%. Additionally, the committee is expected to propose clarifications regarding Input Tax Credit (ITC) in various sectors facing operational challenges, as well as proposals related to tax applicability on metal and steel scrap.

The GST Council itself, convening after a hiatus of nearly nine months, will address several pending agenda items. These include recommendations from subcommittees like the Fitment Committee and the Law Committee, which deals with legal interpretations and rule changes. The Council may restructure the Group of Ministers on Rate Rationalisation and establish new timelines for submitting reports on rate rationalisation and correcting the inverted duty structure.

Industry expectations for the meeting include a review of GST on online gaming and clarifications on input tax credit applicability for telecom services and spectrum charges. The Council is also expected to discuss measures to enhance ease of doing business and compliance under GST, including issuing clarifications for global companies with branch offices in India and head offices abroad.

Further proposals include exempting GST on services between the head offices and local branches of foreign airline operators, streamlining compliance through Aadhaar-based authentication of GST taxpayers, and simplifying rules and laws to achieve greater compliance and ease of living.

Overall, stakeholders anticipate the Council to address a wide array of issues crucial to the business environment under the GST regime.