In GST, Government makes laws on the recommendations of the GST council. For that reason, the GST council meets on regular basis to monitor the requirements of the economy and propose changes in the laws or issue clarifications for better implementation of the laws. On 17th Dec. 2022, the council met for the 48th time in New Delhi through video conferencing and proposed various measures to streamline the legal creases. Finance Minister Nirmala Sitharaman chaired the GST Council Meeting.
A press release has been issued to circulate the proposed changes. A total of 25 amendments or clarifications are proposed in this council meeting. For convenience, Ministry has divided these into various headings such as changes relating to:
A. Tax Rates-6 Proposals
B. Measures for facilitation of trade-13 Proposals
C. Measures for streamlining compliances-GST 6 Proposals
Here are the key highlights:
There were 15 items on Council’s agenda but only 8 points were discussed.
The rest of the matters that could not be taken up refers to revenue augmentation matters, setting up of GST appellate tribunal and GST on Gutkha and pan masala.
The meeting ended early due to time constraints expressed by most of the GST Council members.
Summary of Key Highlights of the 48th GST Council meeting are as follows:
- Decriminalisation of three kinds of offences under GST: Obstruction of duties of an officer, the threshold amount of tax for launching criminal offence under GST increased from the current limit of Rs.1 crore to 2 crores, except where fake invoices are involved and reduce the workload of courts decriminalised the compounding of offence up to a limit;
- A few GST rate rationalisation matters were taken up – GST on pulse husks for cattle feed (including chilka and concentrates) was reduced to nil from 5%. Further, the concessional 5% GST on ethyl alcohol or biofuel, supplied to refineries for blending with petrol, which was earlier charged at 18%.
- Clarifications were given on a few taxation matters, such as the GST on equipment used by petroleum companies for exploration and how to deal with mismatches of invoices in GSTR-1 vs GSTR-3B in the early years.
- E-Commerce Operators can allow the suppliers to be registered under the composition scheme and unregistered vendors, facilitating e-commerce for all the micro-enterprises.
- No GST is payable where the residential dwelling is rented to a registered person if it is rented in his/her capacity for use as his/her residence and on his account.
- Rule 109C and FORM GST APL-01/03 W to be inserted in the CGST Rules, 2017 to provide the facility for withdrawal of an application of appeal up to a certain specified stage.
- Sec 37, 39, 44 & 52 of CGST Act, 2017 to be amended to restrict the filing of returns/ statements to a max period of 3 years from the due date of filing of the relevant return/statement.
- FORM GSTR-1 to be amended to provide for reporting of details of supplies made through ECOs, u/s 52, by supplier and reporting by the ECO in respect of supplies made u/s 9(5) of CGST Act, 2017.
- Sub-rule (3) of rule 12 of CGST Rules,2017 to be amended to provide for the facility to the registered persons, who are required to collect TCS & TDS, for cancellation of their registration on their request.
- The second report on casinos and online gaming was not circulated and hence not part of the 48th meeting agenda.
- No decision has been taken on any GST rate hike.
- Cess on SUV at 22% clarified – Applicable if meets 4 criteria-
- Popularly known as SUV,
- o The engine capacity of more than 1500 cc,
- Length of more than 4000 mm and
- Ground clearance equal to or more than 170 mm
- Further, Council clarified that no GST on insurance is levied on the No-claim bonus offered by insurance companies, so it is deductible from the premium without a GST charge.
By Team AMKN & Co. Chartered Accountants
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