The 50th GST Council Meeting took place on 11th July, Tuesday, in New Delhi, observing a momentous milestone in the journey of Indian Goods and Services Tax (GST). The meeting was led by Union Finance & Corporate Affairs Minister Nirmala Sitharaman. She made several important decision changes and recommendations changes in GST tax rates, streamlining of compliance processes and measures for facilitation of trade.
Key Highlights of the Decisions
Relaxations to Taxpayer
- Transporters does not require to file declaration for paying GST under forward charge every year.
- No RCM on services supplied by a company director to the company in his personal or private capacity such as supplying services of renting of immovable property to the company
- Government extended the special process regarding mismatch in input tax credit availed in GSTR-3B and GSTR-2A for 2 more years i.e Financial year 2019-20 and 2020-21.
- Amnesty schemes issued vide notifications dated 31.03.2023 concerning to non-filers of FORM GSTR-10, FORM GSTR-9, FORM GSTR-4 returns, revocation of cancellation of registration is now to extended till 31.08.2023.
- System-based information to the taxpayers in association of the excess availment of input tax credit in FORM GSTR-3B made available in FORM GSTR-2B
- No GSTR-9 for turnover up to 2 crores
Changes in the Rates
- Supply of food and beverages in cinema halls is taxable at 5%
- 28% GST on the value of the chips purchased in casinos
- 28% GST on the full value of the bets placed in Online Gaming
- GST rate of cinema ticket will apply, if the sale of cinema ticket and supply of food and beverages clubbed together then
Other Important Changes
- GST Appellate tribunal will be initiated in a phased manner
- Relaxations provided in Financial Year 2021-22 relating to various tables of FORM GSTR-9C and FORM GSTR-9 be continued for Financial Year 2022-23
- Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases relating warranty replacement of parts and repair services during warranty period
- Input Services Distributor (ISD) mechanism is not mandatory for distribution of ITC for procured from 3rd parties to the different persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory.
- Refund of accumulated ITC to be restricted to ITC appearing in FORM GSTR-2B
- In cases of supply of taxable services, only Name of state on tax invoice to be mentioned not the name and full address of the recipient through an E-COMMERCE
- To do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant.
- To provide for physical verification in high risk cases even where Aadhaar has been authenticated.
This is just the key highlights of the 50th GST Council Meeting, if you want to know more and understand decision, relaxations, and recommendations in detail, contact ASC Group. We will connect you with the GST Experts to assist you in all your matters relating to Goods and Services Tax.