NEW DELHI : With the delay in the GST Council meeting, several industries awaiting clarifications from the government won’t get immediate relief as the model code of conduct will be coming into force with the poll announcement.
The Council in its 51st meeting had announced to review the 28% levy on online gaming and casinos after six months of its implementation date which was October 1, 2023.
The Council is supposed to meet every quarter but this time it had to skip because of interim budget and the upcoming general elections. “The GST Council meet will likely take place after the new government is formed. No major decision can be taken because of the model code of conduct,” a top official told this newspaper. The 52nd GST Council meeting took place on October 07, 2023.
The Directorate General of GST intelligence (DGGI) has tightened its noose around fast-moving consumer goods (FMCG) companies for alleged tax evasion.
According to industry sources, the FMCG industry needs clarification from the Council, as there is a lot of ambiguity around the tax rate. Similarly, the real estate industry is also awaiting clarification regarding 18% GST levied on special purpose vehicle (SPV) model for projects. Also, it has to clarify its stand on the continuity of anti-profiteering provisions, rate rationalisation, GST on corporate guarantees,
“GST Council takes decisions on all crucial aspects of GST. It is but natural that with the model code of conduct for general elections expected to be announced anytime soon, policy decisions on GST matters are deferred till such time the Code of Conduct is in effect,” said Chetan Daga, a chartered accountant and founder of AdvantEdge Consulting.