No consensus on uniform taxation on lottery yet

Apart from taxation on lottery, the GST Council is also likely to take up pending issues, including extension of National Anti-profiteering Authority’s tenure till November 30, 2020.
For representational purposes.
For representational purposes.

NEW DELHI: The Group of Ministers (GoM) appointed by GST Council to discuss imposition of uniform taxation on lottery, has failed to reach a consensus after representatives of West Bengal and Kerala opposed  the idea, citing loss to state governments. The GST Council will take up the issue again in its next meeting on June 21.The council had formed an eight-member GoM, led by Maharashtra finance minister Sudhir Mungantiwar, to discuss and suggest whether a uniform tax rate should be imposed on lotteries or the current differential tax rate system must be continued.

Apart from taxation on lottery, the GST Council is also likely to take up pending issues, including extension of National Anti-profiteering Authority’s tenure till November 30, 2020.The meeting, which will be held under the new Union Finance Minister Nirmala Sitharaman, is also expected to levy Goods and Services Tax (GST) on Extra-Neutral Alcohol, used for manufacturing alcoholic liquor.

“In the next meeting, they should look at approach and implementation around GST 2.0; reports of sub-committees set up on GST 2.0 would be expected. More clarity is expected on e-invoicing and ITC mechanism during the proposed trial phase of GST 2.0. The council should also review status of GSTR-9 filings,” said Archit Gupta, CEO, ClearTax.

The council may discuss increasing tax compliance and further rate rationalisation. “If the revenue is buoyant, there may be more room for reducing tax rates. But with the new GST returns filing and input tax credit claim system being proposed, compliance may be hit initially. So, big changes cannot be expected. Auto industry and solar energy businesses are looking forward to rate rationalisation; there may be specific relief, but large-scale rate reduction would hit collections as corresponding pick-up in growth takes time to reflect in the economy and revenue,” Gupta added.

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