homeeconomy NewsGST Council Meet: Status quo likely on textile tax but online gaming, casinos may come under 28% slab
GST Council Meet: Status quo likely on textile tax but online gaming, casinos may come under 28% slab
The GST Council is likely to meet in the second half of June. The Council may extend timeline for GoM on rate rationalisation by six months.
In the upcoming meet, the GST Council is unlikely to correct inverted duty structure with respect to textiles. The Council is likely to maintain status quo on the taxation on textile, sources told CNBC-TV18.
The development comes even as high prices of raw material amid inflationary pressure impact textile mills.
Inverted duty structure under GST means the tax on raw material and intermediates is higher than that on finished products. At present, the rate on manmade fibre, yarn and fabrics is 18 percent, 12 percent and 5 percent, respectively.
The GST Council is likely to meet in the second half of June.
The Council may take up the report by the group of ministers on online gaming, casinos and race courses and is likely to decide in favour of the unanimous view in report, said the sources.
According to them, the group of ministers (GoM) is recommending levying a 28 percent GST on gross gaming value. Currently, services of casinos, horse racing and online gaming attract 18 percent GST.
The GoM headed by Cornad Sangma has already submitted the report to Union Finance Minister Nirmala Sitharaman.
"The Group of Ministers (GoM) on casinos, race courses & online gaming has come to a consensus. The report of our submissions will be handed over to Hon'ble FM, Smti. @nsitharaman Ji in a day or two & the matter will be presented in the next @GST_Council Meeting," Sangma had tweeted on May 18.
The Council may extend timeline for GoM on rate rationalisation by six months. It may also begin discussion on covering virtual digital assets and crypto assets under GST ambit.
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