Major recommendations of GST Council meeting

1. MAJORRECOMMENDATIONSOFGSTCOUNCILMEETING AUTHOR:CADINESHSINGHAL1 https://taxguru.in/goods-and-service-tax/major-recommendations-gst-council-meeting.html The 47th GST Council Meetingunder the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman was held on 28th & 29th June 2022. The council deliberated upon various burning issues under GST and made various recommendations. The council also accepted the recommendations of the Group of Ministers (GoMs) constituted on various issues such as rate rationalization, GST system reforms, and themovement of gold and preciousstones. Themajorrecommendationsofthecouncilcanbegroupedunderfollowingbroadheads: 1.RecommendationsrelatingtoGSTratesongoodsandservices: TheGSTCouncilhasrecommendedraterationalizationonvariousgoodsandservicestoremoveinverted dutystructure. Atthesametime,thecouncilhasacceptedtherecommendationsoftheGoMsforwithdrawalof exemptiononvariousitemssuchasfoodgrainsinprepackagedandpre-labelledretailpackintermsof LegalMetrology Act, cheques (loseor in book form)etc. ThecouncilalsoprovidedclarificationsregardingGSTratesonvariousgoodsandservices.Someofthe relevantclarificationshavebeenlistedbelow: Electricvehicleswhetherornotfittedwithabatterypack,areeligiblefortheconcessionalGSTrateof 5%. Allflyashbricksattractsameconcessionalrateirrespectiveofflyashcontent. StonescoveredinS.No.123ofSchedule-I(suchasNapastones),eveniftheyarereadytouseand polishedin minorways [not mirrorpolished], attractconcessional GST rateof 5%. TheGSTrateonallformsofmangounderCTH0804,includingmangopulp(otherthanmangoessliced, dried)attractGSTatthe12%.Entryisalsobeingamendedtomakethisamplyclear.Raworfresh mangoescontinue to be exempt. SewagetreatedwaterisexemptedfromGSTandisnotthesameaspurifiedwaterprovidedinS.No.99of notification2/2017-CT(Rate).Theword‘purified’isbeingomittedtomakethisamplyclear. NicotinePolarilex Gum attractsa GST rate of18%. DuetoambiguityinGSTratesonsupplyofice-creambyice-creamparlours,GSTcharged@5%without ITConthesameduringtheperiod1.07.2017to5.10.2021shallberegularizedtoavoidunnecessary litigation. Applicationfeechargedforentranceorforissuanceofeligibilitycertificateforadmissionorissuanceof migrationcertificatebyuniversitiesisexemptfromGST. Activityofsellingofspaceforadvertisementinsouvenirspublishedintheformofbooksiseligiblefor concessionalGST at 5%. RentingofvehiclewithoperatorfortransportationofgoodsontimebasisisclassifiableunderHeading 9966(rentalservicesoftransportvehicleswithoperators)andattractsGSTat18%.GSTonsuchrenting wherecost offuel isincluded in theconsideration chargedis beingprescribed at 12%.

2. ServicesprovidedbytheguestanchorstoTVchannelsinlieuofhonorariumattractGST.ServicesprovidedbytheguestanchorstoTVchannelsinlieuofhonorariumattractGST. • Othersignificantchangesrecommendedbythecouncilareasfollows: • All taxable service of Department of Posts would be subject to forward charge. Hitherto certain taxable servicesof Department ofpost were taxed onreverse charge basis. • Goodstransportagency(GTA)isbeinggivenoptiontopayGSTat5%or12%underforwardcharge; • optiontobeexercisedatthebeginningofFinancialYear.RCMoptiontocontinue. • Service provided by Indian Tour operator to a foreign resident for a tour partially in India and partially outside India is to be subject to tax proportionate to the tour conducted in India for such foreign tourist subjectto conditionsthat this concessiondoes not exceedhalf of tourduration. • Alltheserecommendationsshallbeeffectivefrom18thJuly2022. • RecommendationsrelatingtoGSTlawandprocedure: • TheGSTCouncilhasinter-aliamadethefollowingrecommendationsrelatingtoGSTlawandprocedure: • MeasuresforTradeFacilitationincludes: • Waiverofrequirementofmandatoryregistrationundersection24(ix)ofCGSTActforpersonsupplying goodsthrough E-Commerce Operators,subject to conditions. • Compositiontaxpayerswouldbeallowedtomakeintra-Statesupplythroughe-commerceoperators • subjecttocertainconditions. • Amendmentinformulaprescribedinsub-rule(5)ofrule89ofCGSTRules,2017forcalculationofrefund ofunutilized Input TaxCredit on account ofinverted rated structure. • AmendmentinCGSTRulesforhandlingofpendingIGSTrefundclaims. • AnewFORMGSTPMT-03Aforre-creditofamountinelectroniccreditledger. RetrospectiveAmendment in50(3), 49(1)to benotified. • GSTR-4duedateextendedtill28-07-2022andCMP-08forQ1FY2022-23till31-07-2022 • PresentexemptionofIGSTonimportofgoodsunderAA/EPCG/EOUschemetobecontinued. • ExemptionfromfilingannualreturninFORMGSTR-9/9AforFY2021-22tobeprovidedtotaxpayers havingAATO up to Rs. 2 crores. • NoITCreversalonSaleofMEISScrips. • UPI&IMPStobeprovidedasanadditionalmodeforpaymentofGST. • Measuresforstreamliningcompliancesincludes: • ProvisionofAutomaticRevocationofRegistrationpostFilingofGSTReturns. • ProposalforcomprehensivechangesinFORMGSTR-3Btobeplacedinpublicdomainforseeking inputs/suggestionsof the stakeholders. • Timeperiodfrom01-03-2020to28-02-2022tobeexcludedfromcalculationofthelimitationperiodfor • filingrefundclaimbyanapplicantundersection54and55ofCGSTAct,aswellasforissuanceof demand/order(by properofficer)in respectoferroneous refundsundersection 73ofCGST Act. • Further,limitationundersection73forFY2017-18forissuanceoforderinrespectofotherdemands • linkedwithduedateofannualreturn,tobeextendedtill30thSeptember,2023. • GoMshallbeconstitutedforConstitutiontoaddressvariousconcernsraisedbystatesinrelationto constitutionof GST Apellate Tribunals. • Approvedad-hocapportionmentofIGSTtotheextentofRs.27,000croresandreleaseof50%ofthis • amount,i.e.Rs.13,500croretotheStates. • Toweedoutnon-complianttaxpayers,theGoMonITreformsrecommendedthatGSTNshouldputin place theAI/MLbased mechanismtoverify theantecedentsof theregistrationapplicants andanimproved

3. risk-basedmonitoringoftheirbehaviorpostregistration.