The GoM also decided to
seek more time from the GST Council to finalise its main
report concerning restructuring of the GST slabs.
It’s tenure may extended till November-December.
The GoM’s decision follows Tripura High Court’s judgement against Sarvasiddhi
Agrotech on April 20, 2021, wherein the court upheld the tax demand on the
company for selling packaged rice under the marking as Aahar normal, Aahar Gold,
Aahar premium.
The company had claimed that these were not the brand names, but an “internal
arrangement” to indicate the quality variety.
The revenue department had argued that these markings are nothing but brand
names since the supplier has not forgone the actionable claim/ enforceable
right.
The department sought to tax the items at 5%.
While a much-awaited restructuring of the GST slabs to raise the revenue-neutral
rate (RNR), from a little over 11% now to 15.5%, could start in a small way this
year in areas not prone to inflation, the GST Council will likely consider
enforcing a ministerial panel’s recommendations on data analytics to tighten
compliance and scrutiny of GST returns to augment revenues by plugging leakages.
It could consider raising the GST on online gaming from 18% to 28%, to bring the
skill-game tax rate at par with chance games involving gambling and betting,
sources said.