The GST Council is convening today to address various important matters, including the potential taxation of heavy utility vehicles, horse racing, and online gaming. Additionally, discussions regarding the establishment of a GST Tribunal and the formulation of associated regulations are anticipated.
During the meeting, the Council is expected to provide clarification on the classification of multi-utility vehicles (MUVs) and crossover utility vehicles (XUVs) in relation to the imposition of a 22% compensation cess in addition to the existing 28% GST rate. Sources indicate that the proposed criteria for the cess entail a vehicle length exceeding 4 meters, an engine capacity surpassing 1,500 cc, and a ground clearance exceeding 170 mm.
In a previous session held in December 2022, the GST Council had clarified the definition of SUVs, but some states requested similar clarification for MUVs. This matter may also be addressed during the current meeting.
Furthermore, the Fitment Committee has recommended exempting integrated GST (IGST) on cancer medicine called Dinutuximab, which patients import for personal use. Currently, a 12% IGST is imposed on this medicine. A decision on this proposal is likely to be made.
The Council is also expected to deliberate on the long-standing issue of levying a 28% GST on online gaming, casinos, and horse racing. Additionally, the establishment of a GST Tribunal and the formulation of relevant rules will be discussed during the meeting, according to sources.
