Important Takeaways from the 50th GST Council Meeting
The 50th meeting of the GST Council took place on July 11, 2023, in New Delhi, with Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman presiding as the Chairperson. In the esteemed presence of the Honorable Members of the GST Council, the Chairperson unveiled a short film titled "GST Council - 50 Steps Towards a Journey" to commemorate this milestone meeting. Additionally, on this momentous occasion, the Chief Post Master General of Delhi presented the Chairperson and Members of the Council with the inaugural set of an exclusive cover and personalized 'My Stamp'.
During the meeting, the GST Council put forth various suggestions encompassing modifications in GST tax rates, trade facilitation measures, and streamlining GST compliance.
Recommendations relating to GST rates on Goods: -
• GST on Dinutuximab (Quarziba) medicine when imported for Personal use ,Medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases ,RBL Bank and ICBC Bank are on the list of specified banks for which IGST exemption is available on imports of gold, silver, or platinum will be exempt.
• Uncooked/Unfried Snack Pellets, Zari thread or yarn ,LD slag ,Fish soluble paste will be taxable at 5%.
• Supply of raw cotton(including kala cotton) by Agriculturists to cooperatives will be covered in RCM.
• Compensation cess notification to include all utility vehicles.
• Regularise the matters relating to trauma, spine and arthroplasty , desiccated coconut ,GST on plates and cups made of areca leaves, GST on biomass briquettes as per prescribed timelimites.
• Pan masala, tobacco products etc, where it is not legally required to declare the retail sale price, the earlier ad valorem rate as was applicable on 31st March 2023 may be notified in order for levy of Compensation Cess.
Recommendations relating to GST rates on Services
|
Sr No. |
Services/Description |
Amendment/clarification |
|
1. |
Satellite launch services are supplied by private sector |
Exempt |
|
2. |
GTA Service |
|
|
3. |
Services supplied by a director of a company to the company |
In his private or personal capacity are not taxable under RCM (such as supplying services by way of renting of immovable property to the company or body corporate). |
|
4. |
Supply of food and beverages in Cinema halls |
Taxable as restaurant service if it is supply independently. |
|
5. |
Casinos, race courses, online gaming, and horse racing. |
Taxable at 28% on face value
|
Measures for facilitation of trade: -
• The Council has recommended the Rules governing the appointment and conditions of the President and Members of the proposed GST Appellate Tribunal with provisions of the Finance Act, 2023, pertaining to the GST Appellate Tribunal. (To be notified by centre form 01.08.2023).
• Council has continued the relaxations for the taxpayers for the financial year 2022–23. Annual Returns for FY 2022–23 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C and also exemption from filing of annual return for small taxpayers having aggregate annual turnover up to two crore rupees for FY 2022–23 also.
• Clarification will be issued for various refund related issues such as Restrictions on refund of accumulated input tax credit (ITC) on inward supplies, adjusted total turnover formula, export of goods and service-related refund application.
• Clarification related to E-invoices for supplies supplied to government departments, agencies, local governments, PSUs, etc., registered merely for TDS implications will be issued.
• In warranty replacement of parts and repair services during the warranty period without any consideration from the customers there will be no GST and no reversal of ITC.
• Clarification regarding TCS liability in cases where multiple E-commerce Operators (ECOs) are involved in a single transaction of supply of goods or services or both will be issued.
• Only name of the State of the recipient, and not the name and full address of the recipient, on the tax invoice in cases of supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient.
• Clarification regarding the manner of calculation of interest amount liable to be paid in respect of wrongly availed and utilized IGST credit will be issued. In cases of wrong availment of IGST credit, the balance of input tax credit (ITC) in electronic credit ledger, under the heads of IGST, CGST and SGST taken together, has to be taken in consideration while calculating such interest liability.
• Circular issued for mismatched in ITC between FORM GSTR-3B and FORM GSTR-2A will be now extended for more than two years up to March 31, 2021.
• Special procedure to be provided for the manual filing of appeals against the orders passed in respect of TRAN1/TRAN-2 claims.
• Amendment provides for manual filing of appeal rules under certain specified circumstances.
• Extension of the amnesty schemes for non-filers of FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10 returns, revocation of cancellation of registration, and deemed withdrawal of assessment orders, till August 31, 2023.
Measures for streamlining compliances in GST:
• Prescribing the special procedure to be followed by the manufacturers of tobacco, pan masala, and other similar items for registration and return filing & also provision of penalty is inserted for that.
• Bank account details need to be provided in 30 days of grant of registration.
• System-based suspension of GST registration in respect of taxpayers that do not furnish a valid bank account within the time period.
• Automatic revocation of such system-based suspension upon compliance.
• Physical verification of business premises can be conducted without the presence of the applicant and also to provide for physical verification in high risk even if Aadhar has been verified.
• Risk-based biometric-based Aadhaar authentication’s pilot to be conducted in U.T. of Puducherry for of registration applicants. Currently pilot is being conducted in Gujarat.
• System-based intimation mechanism for taxpayers regarding excess ITC availment in FORM GSTR-3B and FORM GSTR-2B.
• In Form GSTR-5A, OIDAR service providers are required to provide supply details for registered persons in India and also help in tracking due tax payments on a reverse charge basis.
• Duty Free Shops' value at international airport arrival terminals is included in exempt supplies for reversal of input tax credit.
• Consent-based sharing of registered persons' information on the common portal with other systems. It also recommends notifying Account Aggregators as a system to share information.
• Forming a State-level coordination committee for knowledge sharing and coordinated administrative and preventive measures in GST administrations.
Read more from https://pib.gov.in/PressReleasePage.aspx?PRID=1938812
Disclaimer: The news articles/knowledge updates related to law, business and finance published by us are intended to provide general information and basic understanding only and are not substitute for any professional or legal advice. By accessing and using the news articles/knowledge updates on our website, you acknowledge and agree to the terms of this disclaimer. We reserve the right to modify or update this disclaimer at any time without prior notice.
