The Goods and Services Tax (GST) Council is set to reduce tax rates on certain food items like Papad, kachri in the upcoming meeting, though there are also plans to increase the compensation cess on some vehicles. Currently, unfried snacks like papad and kachari are taxed at 18 per cent. The proposal is to remove it altogether or fix it at 5 per cent.
The complex issue of taxing online gaming is also on the agenda of the 50th meeting of the Council. Earlier, a group of state finance ministers had left it to the council to decide whether the full face value of bets placed or gross gaming revenue should be taxed at the rate of 28 per cent. Accordingly, a final decision on the matter may be taken in the meeting, sources have told Business Today TV.
Other proposals include reduction in tax rate on medicines and food for special medical purposes to 12 per cent. Reducing the GST rate on fake zari yarn to 5 per cent is also on the agenda.
However, it is proposed to maintain status quo at the current rate of 18 per cent on apple carton boxes. No change is also expected on two-wheelers and four-wheeler flexi-fuel vehicles, with the current rate being 28 per cent.
No decision is expected on millet-based products, which currently attract 12-18 per cent GST. The Council is also likely to clarify whether supply of food and beverages to theatres is taxable at the current rate of 5 per cent.
In addition to the above, it is expected that the Council will also consider the long-pending proposal of the GST Appellate Tribunal to resolve disputes between taxpayers and tax authorities.
