As it meets for the 50th session here on Tuesday, the Goods and Services Tax (GST) Council will refrain from undertaking major structural changes in the comprehensive indirect tax that has just completed six years, but is likely to tweak the tax rates for a few products and issue a host of important clarifications.

Additional measures to plug fake registration of firms and foil misuse of input tax credit (ITC) are also set to be announced.

The Council is expected to clarify that the supply of food and beverages at cinemas is taxable at the rate of 5%, similar to stand-alone restaurants, dispelling a notion that the applicable rate is 18%. Besides, it will also make it clear that a 22% cess is applicable on MUVs and XUVs, similar to the imposed on SUVs, official sources said.

The Centre-state body may also resolve that, the TCS liability will fall on the final supplier in e-commerce trading through Open Network Digital Commerce where multiple operators are involved in a transaction, However, the Council might defer a decision on whether 28% will be levied on entire sums paid for participants in online gaming or only on the platform fees.

Among other issues, the Council will also discuss the issue of the budgetary support scheme which came in lieu of earlier excise duty exemption schemes for industrial units located in the Himalayan and north-eastern states.

Area-based exemptions for excise for eligible manufacturing were removed under the GST regime, which got rolled out on July 1, 2017. But the Centre is reimbursing 58% of net CGST and 29% IGST. However, industrial units located in the hilly states have been seeking the implementation of a mechanism for reimbursement of the balance of 42% of the Central Goods and Services Tax and 21% of the IGST paid by them (devolved by the Centre to states).

Officials are sceptical that GST Council will take a decision on a revised tax structure for the thriving online gaming sector and it might take some more time to thrash out differences among states on the issue.

According to sources, of the eight members of the Group of Ministers (GoM), only Uttar Pradesh and West Bengal finance ministers were fully in favour of the panel’s first report that had recommended 28% GST on online gaming on the full value of the consideration without making any distinction between games of skill and chance.

Currently, GST is levied on online skill-based gaming at 18% of the platform fee, which is up to 20% of the contest entry amount. The gaming industry was of the view that if 28% is imposed on the entire contest entry amount, the tax incidence on the gaming industry will skyrocket.

At the state and central government officials meeting on Monday, many issues were discussed, including how to plug fake ITC claims.

The GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess ITC claims or deposit the amount with the exchequer.

To check fake registration, the Council will likely reduce the time period to 30 days from 45 days currently for the submission of PAN-linked bank account details of the person seeking registration with tax authorities. It will also likely provide for mandatory physical verification of the business premises of “high risk” applicants before granting of GST registration.