The 47th Council meet was held during 28th-29th June, 2022. The meeting was chaired by our Finance Minister Nirmala Sitharaman. Certain recommendations have been made by the GST Council relating to the GST Law and procedure.
NOTE: All rate changes recommended will be made effective from 18th July, 2022.
S. No. |
Description |
From |
To |
|||
GOODS |
|
|||||
1 |
Printing, writing or drawing ink |
12% |
18% |
|||
2 |
Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc |
12% |
18% |
|||
3 |
Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps |
12% |
18% |
|||
4 |
Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc; Pawan Chakki that is Air Based Atta Chakki; Wet grinder; |
5% |
18% |
|||
5 |
Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery |
12% |
18% |
|||
6 |
LED Lamps, lights and fixture, their metal printed circuits board; |
12% |
18% |
|||
7 |
Drawing and marking out instruments |
12% |
18% |
|||
8 |
Solar Water Heater and system; |
5% |
12% |
|||
9 |
Prepared/finished leather/chamois leather / composition leathers; |
5% |
12% |
|||
10 |
Refund of accumulated ITC not to be allowed on following goods:
|
|
||||
|
Services |
|
||||
11 |
Services supplied by foreman to chit fund |
12% |
18% |
|
||
12 |
Job work in relation to processing of hides, skins and leather |
5% |
12% |
|
||
13 |
Job work in relation to manufacture of leather goods and footwear |
5% |
12% |
|
||
14 |
Job work in relation to manufacture of clay bricks |
5% |
12% |
|
||
15 |
Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. |
12% |
18% |
|
||
16 |
Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof |
12% |
18% |
|
||
17 |
Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof |
5% |
12% |
|
S. No. |
Description |
From |
To |
Goods |
|||
1 |
Ostomy Appliances |
12% |
5% |
2 |
Orthopaedic appliance- Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens |
12% |
5% |
3 |
Tetra Pak (Aseptic Packaging Paper) |
12% |
18% |
4 |
Tar (whether from coal, coal gasification plants, producer Gas plants and Coke Oven Plants. |
5%/18% |
18% |
5 |
IGST on import of Diethylcarbamazine (DEC) tablets supplied free of cost for National Filariasis Elimination Programme |
5% |
Nil |
6 |
Cut and Polished diamonds |
0.25% |
1.5% |
7 |
IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces. |
Applicable rate |
Nil |
Services |
|||
1. |
Transport of goods and passengers by ropeways. |
18% |
5% (with ITC of services) |
2 |
Renting of truck/goods carriage where cost of fuel is included |
18% |
12% |
C1. Until Now, GST was exempted on specified food items, grains etc when not branded, or right on the brand has been foregone.
However, it has been recommended to revise the scope of exemption to exclude from it pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk.
S. No. |
Description of goods |
From |
To |
GST rate changes |
|||
1 |
Cheques, lose or in book form |
Nil |
18% |
2 |
Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed |
Nil |
12% |
3 |
Parts of goods of heading 8801 |
Nil |
18% |
S. No. |
Description of goods |
From |
To |
GST rate changes |
|||
1 |
Petroleum/ Coal bed methane |
5% |
12% |
2 |
Scientific and technical instruments supplied to public funded research institutes |
5% |
Applicable rate |
3 |
E-waste |
5% |
18% |
A. |
Measures for Trade facilitation: |
1. |
In-principal approval for relaxation in the provisions for suppliers making supplies through E-Commerce Operators (ECOs) |
|
The details of the scheme will be worked out by the Law Committee of the Council. The scheme would be tentatively implemented with effect from 01.01.2023, subject to preparedness on the portal as well as by ECOs. |
2. |
Amendment in formula prescribed in sub-rule (5) of rule 89 of CGST Rules, 2017 for calculation of refund of unutilized Input Tax Credit on account of inverted rated structure a. Change in formula for calculation of refund under rule 89(5) to take into account utilization of ITC on account of inputs and input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the said tax period. This would help those taxpayers who are availing ITC on input services also. |
3. |
Amendment in CGST Rules for handling of pending IGST refund claims: In some cases where the exporter is identified as risky exporter requiring verification by GST officers, or where there is a violation of provisions of Customs Act, the refund claims in respect of export of goods are suspended/withheld. Amendment in rule 96 of the CGST Rules has been recommended to provide for transmission of such IGST refund claims on the portal in a system generated FORM GST RFD-01 to the jurisdictional GST authorities for processing. This would result in expeditious disposal of such IGST refund claims, after due verification by GST officers, thus benefitting such exporters. |
4. |
Re-credit of amount in electronic credit ledger to be provided in those cases where erroneous refund amount sanctioned to a taxpayer on account of accumulated ITC or on account of IGST paid on zero rated supply of goods or services, in contravention of rule 96(10) of the CGST Rules, is deposited by him along with interest and penalty, wherever applicable. A new FORM GST PMT-03Ais introduced for the same. This will enable the taxpayers to get re-credit of the amount of erroneous refund, paid back by them, in their electronic credit ledger. |
5. |
Clause (c) of section 110 and section 111 of the Finance Act, 2022 to be notified by Central Government at the earliest. These provisions relate to-
The rules providing for the manner of calculation of interest under section 50 of CGST Act have also been recommended for more clarity. This will remove ambiguities regarding manner of calculation of interest and will also provide for transfer of balance in CGST and IGST cash ledgers between distinct persons, thereby improving liquidity and cash flows of such taxpayers. |
6. |
Waiver of late fee for delay in filing FORM GSTR-4 for FY 2021-22 and extension of due date for filing FORM GST CMP-08 for Q1 of FY 2022-23:
GSTN has also been asked to expeditiously resolve the issue of negative balance in Electronic Cash Ledger being faced by some of the composition taxpayers |
7. |
Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued and E-wallet scheme not to be pursued further. |
8. |
|
9. |
Exemption from filing annual return in FORM GSTR-9/9A for FY 2021-22 to be provided to taxpayers having AATO upto Rs. 2 crores. |
10. |
Explanation 1 after rule 43 of CGST Rules to be amended to provide that there is no requirement of reversal of input tax credit for exempted supply of Duty Credit Scrips by the exporters. |
11. |
UPI & IMPS to be provided as an additional mode for payment of Goods and Services Tax to taxpayers under Rule 87(3) of CGST Rules. |
12. |
In respect of refunds pertaining to supplies to SEZ Developer/Unit, an Explanation to be inserted in sub-rule (1) of rule 89 of CGST Rules to clarify that “specified officer” under the said sub-rule shall mean the “specified officer” or “authorized officer”, as defined under SEZ Rules, 2006. |
13. |
Amendment in CGST Rules to provide for refund of unutilized Input Tax Credit on account of Export of Electricity. This would facilitate the exporters of electricity in claiming refund of utilized ITC on zero rated supplies. |
14. |
Supplies from Duty Free Shops (DFS) at international terminal to outgoing international passengers to be treated as exports by DFS and consequential refund benefit to be available to them on such supplies. Rule 95A of the CGST Rules, Circular No. 106/25/2019-GST dated 29.06.2019 and related notifications to be rescinded accordingly. |
B. |
Measures for streamlining compliances in GST |
1. |
Provision for automatic revocation of suspension of registration in cases where suspension of registration was done by the system under Rule 21A(2A) of CGST Rules, for non-compliance in terms of clause (b) or clause (c) of sub-section (2) of section 29[continuous non-filing of specified number of returns], once all the pending returns are filed on the portal by the taxpayer. (Amendment in rule 21A) |
2. |
Proposal for comprehensive changes in FORM GSTR-3B to be placed in public domain for seeking inputs/suggestions of the stakeholders. |
3. |
Time period from 01.03.2020 to 28.02.2022 to be excluded from calculation of the limitation period for filing refund claim by an applicant under section 54 and 55 of CGST Act, as well as for issuance of demand/ order (by proper officer) in respect of erroneous refunds under section 73 of CGST Act. Further, limitation under section 73 for FY 2017-18 for issuance of order in respect of other demands linked with due date of annual return, to be extended till 30th September, 2023. |
C |
The Council has decided to constitute a Group of Ministers to address various concerns raised by the States in relation to constitution of GST Appellate Tribunal and make recommendations for appropriate amendments in CGST Act. |
D. |
The GST Council approved ad-hoc apportionment of IGST to the extent of Rs. 27,000 crores and release of 50% of this amount, i.e. Rs. 13,500 crores to the States. |
E. |
The GoM on IT Reforms, inter alia, recommended that the GSTN should put in place the AI/ML based mechanism to verify the antecedents of the registration applicants and an improved risk-based monitoring of their behaviour post registration so that non-compliant tax payers could be identified in their infancy and appropriate action be taken so as to minimize risk to exchequer. |
In case of any doubt or query on GST Council Meeting recommendation, feel free to contact GST Experts at ASC Group. We would be glad to assist you with a complete advisory.
Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1838020
Leave a Reply
Your email address will not be published. Required fields are marked *