53rd GST Council Meeting Highlights: FM Assures Finance Commission Grants and GST Compensation Arrears to States
23.06.2024: The 53rd GST Council meeting, held on June 22, 2024, addressed significant topics with Finance Minister Nirmala Sitharaman presiding. The council’s agenda included discussions on extending the GST ambit to natural gas and aviation turbine fuel (ATF), as well as a review of the 28 percent levy on online games, horse racing, and casinos.
Key Highlights from the GST Council Meeting:
- Finance Commission Grants and GST Compensation:
- FM Nirmala Sitharaman assured states of the timely release of finance commission grants and GST compensation arrears, addressing a critical concern for state finances.
- Inclusion of Natural Gas and ATF Under GST:
- Proposals to bring natural gas and ATF under GST were a focal point. This move aims to simplify tax structures and potentially lower costs in these sectors.
- Review of the 28% Levy:
- The council considered revisiting the 28 percent levy on online gaming, horse racing, and casinos, a topic of intense debate since its imposition in the previous meeting.
- Council Attendees:
- The meeting saw participation from key figures including Finance MoS Pankaj Chaudhary, the Revenue Secretary, Chairman CBIC, Member CM, Member GST, Member TP, and senior officers from the Union Government and States.
- Previous Meeting Decisions:
- Reflecting on the October 7, 2023 meeting, the council had decided on the 28 percent levy on gaming and racing sectors. The review was postponed in March but brought back to the table in this session.
The discussions and decisions taken in this meeting are crucial as they impact state revenues and the broader economic landscape. The inclusion of natural gas and ATF in GST could lead to a more unified tax regime, benefiting industries and consumers alike. The reassessment of levies on gaming and racing is expected to balance revenue generation with industry growth.