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GST Council Meeting #48

48th GST Council Meeting — Gaming GoM & Millets

The 48th Meeting (17 December 2022) received the crucial GoM report recommending 28% on online gaming, approved millet exemptions ahead of International Year of Millets, and laid groundwork for GSTAT and decriminalization.

17 Dec 2022
Date
New Delhi
Location
Gaming GoM
Key Topic
6+
Rate Changes

Key Decisions & GoM Reports

Online Gaming & Casinos
  • GoM on online gaming submitted final report — recommended 28% GST on full face value of bets
  • GoM on casinos recommended 28% on full value of chips purchased (not individual bets)
  • Horse racing recommended at 28% on full bet value
  • Decision deferred for broader stakeholder consultation (industry opposition strong)
Decriminalization
  • Agreed in principle to decriminalize certain GST offences
  • Proposed raising prosecution threshold from ₹1 Cr to ₹2 Cr
  • Proposed reducing compounding amount from 25-150% to 25-100%
  • Final approval delegated to 49th Meeting (February 2023)
Rate Reductions
  • Millet-based products (ragi balls, millet flour) — exempt when sold loose (not pre-packaged)
  • Husk of pulses — exempt from GST (agricultural waste)
  • Ethanol for blending with petrol — 18% → 5% (support Ethanol Blending Programme)
  • Rab (liquid jaggery) — recommended 5% (confirmed in 49th Meeting)
Pan Masala GoM
  • GoM recommended shifting to capacity-based (specific) taxation
  • Revenue-neutral approach: ensure no revenue loss vs ad-valorem
  • Track & trace mechanism via unique QR codes on each pouch
  • Piloted from April 2023 onwards
GSTAT Formation
  • Approved in principle: Constitution of GST Appellate Tribunal
  • Discussed bench composition — Centre vs State member balance
  • Legal framework to be prepared via Finance Act 2023 amendments
  • Formal constitution delegated to 49th Meeting
Compliance & Amnesty
  • Amnesty for late filing of GSTR-4 (Composition Scheme return) — late fee cap ₹500/₹250
  • Deemed withdrawal of best judgment assessment for filed returns
  • Extension for revocation of cancelled registration — one-time window
  • Facilitation centres in states for biometric verification pilot

Rate Changes & Exemptions

Item / ServiceFromToCondition
Millet flour/products (loose)5%ExemptNot pre-packaged or labelled
Husk of pulses (chuni/chilka)5%ExemptAgricultural by-product
Ethanol for petrol blending18%5%Under Ethanol Blending Programme
Pencil sharpener18%12%Reclassified as stationery
Rab (liquid jaggery)18%5% (recommended)Sold loose — confirmed in 49th
Fryums (unfried snack pellets)18%5%Pre-mixed ready-to-fry

Frequently Asked Questions

What was decided about online gaming GST in the 48th Meeting?

The Group of Ministers (GoM) on online gaming submitted its final report recommending 28% GST on the full face value of bets placed (not just platform commission/GGR). The same 28% was recommended for casinos (on chip purchases) and horse racing. However, the Council deferred the final decision due to: (1) Strong industry pushback arguing it would kill the sector; (2) Disagreement on whether 'skill games' vs 'chance games' should be differentiated; (3) Some states (Goa, Sikkim) with casinos had reservations. The decision was finally taken in the 50th-51st Meetings (Jul-Aug 2023).

What is the significance of ethanol GST reduction?

Reducing ethanol GST from 18% to 5% directly supports India's Ethanol Blending Programme (EBP), which targets 20% ethanol in petrol by 2025-26. Impact: (1) Makes ethanol cheaper for Oil Marketing Companies (OMCs) to procure; (2) Supports sugar mills diversifying to ethanol (reduces sugar surplus); (3) Reduces India's crude oil import dependency; (4) Environmental benefit — ethanol-blended petrol has lower emissions. The 5% rate applies specifically to ethanol supplied for blending with petrol under the EBP — industrial/potable ethanol remains at higher rates.

What is the millet products exemption?

The Council exempted millet-based products (ragi malt, millet flour, multi-grain flour with millets) from GST when sold loose (not pre-packaged/labelled). Context: India declared 2023 as 'International Year of Millets' (IYoM). This exemption was part of the government's push to promote millet consumption. Note: The same products attract 5% GST when sold in branded/pre-packaged form — a distinction introduced in the 47th Meeting (June 2022) for all food grains.

What amnesty was offered for GSTR-4 late filers?

GSTR-4 is the annual return for Composition Scheme dealers (small taxpayers with turnover up to ₹1.5 Cr). The amnesty: (1) Late fee capped at ₹500 (₹250 CGST + ₹250 SGST) for GSTR-4 of FY 2017-18 to 2021-22, if filed by 31 March 2023; (2) Original late fee was ₹50/day (₹25+₹25) with no cap — meaning years of non-filing could accumulate lakhs in fees; (3) Deemed withdrawal of best-judgment tax assessments if actual returns are filed; (4) Helped 2.5+ lakh composition dealers come back into compliance.

When was the 48th GST Council Meeting held?

The 48th GST Council Meeting was held on 17 December 2022 in New Delhi under the chairmanship of Finance Minister Nirmala Sitharaman. It was the last Council meeting of 2022 and focused on: GoM reports (online gaming, pan masala, casinos), decriminalization proposals, rate rationalization (millets, ethanol, pencil sharpeners), and amnesty schemes. The next meeting (49th) was held on 18 February 2023 where many of these proposals were formally approved.

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