The GST Council is poised to propose stricter regulations for new registrations, with a particular emphasis on biometric verification. Concurrently, there is an anticipation of Tax Collected at Source (TCS) relief for e-commerce operators. These deliberations will be central to the Council’s forthcoming session on June 22, presided over by Finance Minister Nirmala Sitharaman—the first meeting since October.
Key measures under consideration include mandating biometric checks for all new GST registrations, a significant step aimed at curbing tax evasion through fraudulent entities and identities. This initiative follows a pilot project launched in Gujarat last July, which was subsequently extended to Puducherry and Andhra Pradesh. Initially targeted at high-risk applicants opting for Aadhaar authentication, the scheme involved document verification at facilitation centers and biometric submission. The Council now proposes to implement this scheme nationwide, impacting the 1.46 crore registered taxpayers across India.
In addition to registration reforms, the Council may also recommend reducing the TCS rate on e-commerce transactions from 1% to 0.5%. Currently, e-commerce operators collect TCS at 1% (split equally between CGST and SGST, or entirely under IGST for inter-State transactions) based on the net value of taxable supplies, which is the gross value minus any returns. This potential reduction aims to alleviate the compliance burden on these operators.
The Council will further contemplate introducing a sunset clause for anti-profiteering cases, potentially setting an end date of April 1, 2025. Existing cases might be transferred to the Principal Bench of the GST Appellate Tribunal, following the Competition Commission of India’s (CCI) expressed inability to handle such cases. Initially, these cases were managed by the National Anti-Profiteering Authority before being transferred to the CCI.
Another significant agenda item is the review of the 28% GST imposed on online gaming, casinos, and horse racing, a decision ratified in the Council’s meeting on July 11 of the previous year. Despite resistance from certain states, the law was amended to clarify the GST applicability from July 1, 2017, leading to a surge in show-cause notices. The gaming industry has contested these amendments as retrospective, despite the government’s stance that they are clarificatory.
These deliberations reflect the GST Council’s ongoing efforts to refine India’s taxation framework, balancing the need for stringent compliance with the practicalities of business operations. The outcomes of this meeting will be pivotal in shaping the future landscape of GST regulations in the country.
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