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00:00Abhishek K. Rastogi is also joining us. He is founder at Rastogi Chambers,
00:03tracks the law on GST very, very closely. Abhishek, great to speak with you this morning.
00:09I mean, every time there's a GST council meeting, sometimes there's
00:13over-promise and then under-delivering. Because at the end of the day, for all states to decide
00:20on giving up 18% tax on insurance, for example, it means a loss of revenue. Do you think we're
00:26close to consensus this time around? Abhishek K. Rastogi, Founder, Rastogi Chambers
00:29I think it will come partially, if you ask me, because the state's recommendation will be very
00:35critical here because state is a predominant stakeholder as well as far as the revenue is
00:40concerned. So I think the benefit will come, but it may come with some caveats. For instance,
00:48it may come for only certain categories of insurance policies. It could come based on
00:53age criteria. And I think it will be good to start with, because if some sort of benefit comes
00:59based on some criteria, then I think at least we're moving in the right direction. So I think
01:04that is what is expected from this. What do you mean age criteria? I mean,
01:07you'll pay tax at a certain age and not at a certain age?
01:10Abhishek K. Rastogi, Founder, Rastogi Chambers
01:11No. So for instance, if we talk about the insurance policies, and these are health
01:16insurance policies. So if you are over 60 years of age, premium may be exempted. Things like that
01:23can come up in the meeting and those could be implemented immediately. And there could
01:28be deliberations on the other aspects as well. Okay, apart from the insurance piece, what else
01:34do you expect to be on the agenda and actually see some resolution?
01:38Abhishek K. Rastogi, Founder, Rastogi Chambers
01:39So I think airline for sure is on the agenda. And there needs to be some sort of reconciliation
01:46between the state and the center. And also the policy framework needs to be seen because a lot
01:51of foreign airlines are getting that brunt and these taxes are huge. And also keeping in mind
01:57the diplomatic relationships which India has with a lot of these countries. Some of these airlines
02:02are national carriers. So I think tax certainty will certainly come into play when GST Council
02:08today decides with respect to airline sector. Secondly, I think online gaming, the matter is
02:14sub judice, the matter is before the Supreme Court, we are getting dates after dates, and you know,
02:19it could be heard anytime now. I think what is more important is not just the rate of 18 versus
02:2628%. What is more important and why we are in Supreme Court is with respect to the valuation.
02:32If the valuation is on the entire amount of the gaming bet, then it is a problem. If the tax is
02:41at 18% or 28%, but only on the revenue of the online gaming company, then I don't see that
02:47should be a big problem. So I think more than the tax rate, the valuation will be the key and
02:52whether GST Council will be able to address that based on the number, the revenue, etc. I think
02:59that will have to be seen. But I don't think that decision can be announced in this GST Council
03:04meeting. It will still take more time.