The 54th GST Council meeting is set to take place on September 9 in New Delhi, as confirmed by the official social media account of the tax authority on X on Tuesday.
Key expectations include a much-needed overhaul of GST rates, clear guidelines for foreign airlines and shipping companies on deemed import of services and resolution of long-standing disputes related to secondment, according to experts.
"Additionally, the council is expected to address the GST implications of services provided by foreign branch offices to their Indian headquarters. Industry is hopeful for positive decisions, especially on rate rationalization, which can stimulate growth and investment. Clarifying the taxation of airlines, shipping, and cross-border services will also provide much-needed relief," Saurabh Agarwal, Tax Partner, EY India said.
It may be recalled that recently the Directorate General of GST Intelligence (DGGI) had sent a notice to Infosys, claiming an alleged evasion of ₹32,000 crore. This move had sparked significant controversy within the IT sector. In response, Nasscom had also released a statement addressing the tax demand. There are already discussions going on regarding GST claims from foreign airlines and shipping companies concerning outstanding dues.
Following the previous GST Council meeting on June 23, Finance Minister Nirmala Sitharaman announced that the next meeting will feature a presentation by the Group of Ministers (GoM) on rate rationalization, led by Bihar Deputy Chief Minister Sumant Chaudhary. The presentation will cover the current status of the group's work, including the aspects already addressed and those still pending.
In the last meeting, the issue of 28% GST on online gaming companies wasn't addressed. So, this time, experts are anticipating some decision on it. FM Sitharaman during the press conference on GST Council decisions had said that a lot of issues couldn't be discussed due to paucity of time.