49th GST Council Meeting Recommendations I Press Release I Summary I Key Highlights

49th GST Council Meeting was held in  New Delhi on 18th Feb 2022 . The GST Council has made several recommendations related to GST compensation, GST Appellate Tribunal, approval of the Report of Group of Ministers on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST, recommendations relating to GST rates on Goods and Services and other measures for facilitation of trade. The key points are:

Read also Amendments in GST after the recommendations of the 49th GST Council Meeting

Key Points, Summary  and Highlights of 49th GST Council Meeting Recommendations

1. GST Compensation: The Government of India will clear the entire pending balance GST compensation of Rs. 16,982 crore for June 2022 from its own resources, and the same will be recouped from the future compensation cess collection. The entire provisionally admissible compensation due for five years as envisaged in the GST (Compensation to States) Act 2017 will be cleared.
2. GST Appellate Tribunal: The Council adopted the report of Group of Ministers with certain modifications. The final draft amendments to the GST laws shall be circulated to Members for their comments. The Chairperson has been authorised to finalise the same.
3. Approval of the Report of GoM on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST: The Council approved the recommendations of the GoM to plug the leakages and improve the revenue collection from commodities like pan masala, gutkha, chewing tobacco. Compliance and tracking measures will be taken to plug leakages/evasions, and exports of such commodities will be allowed only against LUT with consequential refund of accumulated ITC. The compensation cess levied on such commodities will be changed from ad valorem to specific tax-based levy to boost the first-stage collection of revenue.
4. Recommendations relating to GST rates on Goods and Services: The GST rates on goods and services will be changed, including a reduction in the GST rate on “rab” from 18% to 5% if sold prepackaged and labelled, and to nil if sold otherwise. The GST rate on pencil sharpeners will be reduced from 18% to 12%.
5. Revocation of GST Cancellation: The Council has recommended the extension of the time limit for making an application for revocation of cancellation of registration from 30 days to 90 days. Where the registered person fails to apply for revocation of cancellation of registration within 90 days, the cancellation of registration shall be deemed to have been revoked from the date of the order of revocation, and not from the date of application for revocation.
6. GST Exenption : The Council also decided to extend the exemption available to educational institutions and Central and State educational boards for the conduct of entrance examinations to any authority, board, or body set up by the Central Government or State Government.
7. GST Reverse Charge : The dispensation available to the Central Government, State Governments, Parliament, and State Legislatures with regard to payment of GST under reverse charge mechanism will be extended to the Courts and Tribunals also in respect of taxable services supplied by them.
8. Late Fees in GST  : Presently, late fee of Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9. The Council recommended to rationalise this late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year upto Rs 20 crore, as below:
   1. Registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
   2. Registered persons having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
9. GST Amnesty Scheme in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10: To provide relief to a large number of taxpayers, the Council recommended amnesty schemes in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.
10. Rationalization of provision of place of supply of services of transportation of goods: Council recommended to rationalize the provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.

Video Explaining 49th GST Council Meeting in Hindi

Here is the Govt Press Release on 49th GST Council Meeting

Government of India to clear entire pending balance GST compensation of Rs. 16,982 crore for June’2022

GST Council adopts report of Group of Ministers (GoM) on GST Appellate Tribunal with certain modifications

GoM report on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST approved

Changes in GST rates of “Rab” and Pencil Sharpner

The 49th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.

The GST Council has, inter-alia, made the following recommendations relating to GST compensation, GST Appellate Tribunal, approval of the Report of Group of Ministers (GoM) on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST, recommendations relating to GST rates on Goods and Services and other measures for facilitation of trade:

GST Compensation

1. Government of India has decided to clear the entire pending balance GST compensation of Rs. 16,982 crore for June’2022 as shown in the table below. Since, there is no amount in the GST compensation Fund, Centre decided to release this amount from its own resources and the same will be recouped from the future compensation cess collection. With this release, Centre would clear the entire provisionally admissible compensation due for five years as envisaged in the GST (Compensation to States) Act’2017. In addition, Centre would also clear the admissible final GST compensation to those States who has provided the revenue figures as certified by the Accountant General of the States amounting to Rs. 16,524 crore.

• 2. GST Appellate Tribunal

The Council adopted the report of Group of Ministers with certain modifications. The final draft amendments to the GST laws shall be circulated to Members for their comments. The Chairperson has been authorised to finalise the same.

• 3. Approval of the Report of GoM on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST:

With a view to plug the leakages and improve the revenue collection from the commodities like pan masala, gutkha, chewing tobacco, the Council approved the recommendations of the GoM including, inter alia, that

• • the capacity based levy not to be prescribed;
  • compliance and tracking measures to be taken to plug leakages/evasions;
  • exports of such commodities to be allowed only against LUT with consequential refund of accumulated ITC;
  • compensation cess levied on such commodities to be changed from ad valorem to specific tax based levy to boost the first stage collection of the revenue

• 4. Recommendations relating to GST rates on Goods and Services

1. Changes in GST rates of Goods and Services

Other changes relating to Goods and Services

2. It has been decided to regularize payment of GST on ‘rab’ during the past period on “as is basis” on account of genuine doubts over its classification and applicable GST rate.
3. It was decided to suitably amend notification No. 104/94-Customs dated 16.03.1994 so that if a device like tag- tracking device or data logger is already affixed on a container, no separate IGST shall be levied on such affixed device and the ‘nil’ IGST treatment available for the containers under notification No. 104/94-Customs shall also be available to the such affixed device subject to the existing conditions.
4. It has been decided to amend entry at Sl. No. 41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
5. It has been decided to extend the exemption available to educational institutions and Central and State educational boards for conduct of entrance examination to any authority, board or a body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions.
6. It has been decided to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.

• 5. Measures for facilitation of trade:

1. Extension of time limit for application for revocation of cancellation of registration and one time amnesty for past cases: The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that –

• • the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days;
  • where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf for a further period not exceeding 180 days.

The Council has also recommended that an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.

2. Amendment to Section 62 of CGST Act, 2017 to extend timelines under sub-section (2) thereof and one time amnesty for past cases: As per sub-section (2) of section 62 of CGST Act, 2017, the best judgment assessment order issued under sub-section (1) of the said section is deemed to be withdrawn if the relevant return is filed within 30 days of service of the said assessment order. The Council recommended to amend section 62 so as to increase the time period for filing of return for enabling deemed withdrawal of such best judgment assessment order, from the present 30 days to 60 days, extendable by another 60 days, subject to certain conditions.

The Council has also recommended to provide an amnesty scheme for conditional deemed withdrawal of assessment orders in past cases where the concerned return could not be filed within 30 days of the assessment order but has been filed along with due interest and late fee upto a specified date, irrespective of whether appeal has been filed or not against the assessment order, or whether the said appeal has been decided or not.

3. Rationalisation of Late fee for Annual Return: Presently, late fee of Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9. The Council recommended to rationalise this late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year upto Rs 20 crore, as below:

• • Registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
  • Registered persons having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).

4. Amnesty in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10: To provide relief to a large number of taxpayers, the Council recommended amnesty schemes in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.

5. Rationalization of provision of place of supply of services of transportation of goods: Council recommended to rationalize the provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.

Note: The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law.

(CA Satbir Singh Contact us Taxheal@gmail.com)

Also Refer GST Council : Free Study Material

GST Council Newsletter

for more you can visit

****

This Article will help on following topics

49th gst council meeting,gst council meeting,gst council meeting update,gst council meeting today,gst council 49th meeting,49th gst council meeting date,gst council meeting highlights,nirmala sitharaman gst council meeting,49th gst council meeting,gst council,49th meeting of gst council,49th gst council meeting date,49th meeting of gst council,49th gst council,gst council meeting 2023,49th gst council meeting pdf download,gst council meet

26th GST Council Meeting held on 10^th March 2018 at Vigyan Bhawan, New Delhi.

Agenda of 26th GST Council Meeting

Agenda of 26th GST Council meeting includes

• Detailed Agenda Note – 26th GSTCM
•  Additional Agenda Items – 26th GSTCM
•  Table Agenda – Agenda Item 14(iv)

Detailed Agenda Note – 26th GSTCM

Additional Agenda Items – 26th GSTCM

Table Agenda – Agenda Item 14(iv)

Minutes of Meeting of 26th GST Council Meeting

Minutes of Meeting of 26th GST Council Meeting released by Govt.

Press Release on 26th GST Council Meeting

Recommendations made during the 26th meeting of the GST Council held in New Delhi on 10th March, 2018

• Press Note Data Analytics
• Press Note E way bill   
• Press Note Return RCM TDS  /Press Release regarding Policy Change
• Press Release exporter extension 10 March 2018 v1.0

Press Note Data Analytics

Refer 26th meeting of GST Council : Recommendations regarding Data Analytics

Press Note E way bill   

Refer 26th GST Council Meeting recommendation on E-way Bill

Press Note Return RCM TDS

Press Release regarding Policy Changes : March 10, 2018

Recommendations made during the 26th meeting of the GST Council held in New Delhi on 10th March, 2018

I. Return filing System

The present system of filing of GSTR 3B and GSTR 1 is extended for another three months i.e., April to June, 2018 till the new return system is finalized. A new model was discussed extensively and Group of Ministers on IT has been tasked to finalize the same.

II. Reverse charge mechanism

The liability to pay tax on reverse charge basis has been deferred till 30.06.2018. In the meantime, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade and industry.

III. TDS/TCS

The provisions for deduction of tax at source (TDS) under section 51 of the CGST Act and collection of tax at source (TCS) under section 52 of the CGST Act shall remain suspended till 30.06.2018. In the meantime, the modalities of linking State and Central Governments accounting system with GSTN will be worked out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.

IV. Grievance Redressal Mechanism

GST implementation Committee (GIC) has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.

Press Release exporter extension 10 March 2018 v1.0

Refer 26th Meeting of the GST Council : Extension of tax exemptions for exporters for six months

Key Highlights of 26th GST Council Meeting

• FM @arunjaitley 26th GST Council Meeting said that existing system of filing returns has been extended for another 3 months and meanwhile, GOM on the IT will look into it & consult tax experts among others.
• GST Council also agreed today to:

(a) Defer the implementation of the e-Wallet scheme by 6 months i.e., upto 01.10.2018; and

(b)Extend the present dispensation in terms of exemptions etc. which is available up to 31.03.2018, for a further 6 months i.e., upto 01.10.2018.

• Domestic procurement made under Advance Authorization, EPCG and EOU Schemes were recognized as ‘deemed exports’ with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon. All these avenues were made available upto 31.03.2018.
• For merchant exporters a Special Scheme of payment of GST @ 0.1% on their procured goods was introduced.
• Thereafter, the GST Council directed GSTN to expeditiously forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursal.
• In a related development which would benefit the exporters, the GST Council reviewed the progress in grant of refunds to exports of both IGST and Input Tax Credit. The Council appreciated that the pace of grant of IGST refund has picked up.
• Thus, exporters presently availing various Export Promotion Schemes can now continue to avail such exemptions on their imports up to 1st October,2018, by which time an e-Wallet Scheme is expected to be in place to continue the benefits in future.
• GST Council in its 26th Meeting held under the Chairmanship of the Union FM, Shri @arunjaitley today in New Delhi sent a strong positive signal to exporting community by deciding to extend the available tax exemptions on imported goods for further 6 months beyond 31st March,2018.
• A new model was discussed extensively and Group of Ministers on IT has been tasked to finalize the same.
• Another major recommendation of the Council include deferment of the liability to pay tax on reverse charge basis till 30.06.2018. Meantime, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade & industry.
• Another major recommendation of the GST Council was relating to Grievance Redressal Mechanism.The GST Council in its 26th Meeting today tasked the GST implementation Committee (GIC) with the work of redressing the grievances caused to the taxpayers arising-out of IT glitches.

Press Conference by Sh Arun jaitely After 26th GST Council Meeting

Video- 26th GST Council Meeting: Arun Jaitely Press Conference

Video by TAXHEAL on 26th GST Council Meeting

Video; 26th GST Council Meeting Decisions 10.03.2018 : GST News [Part 187 ] : TaxHeal.com

Refer GST Council : Free Study Material

Recommendations for Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods -As per discussions held in the 25thGST Council Meeting

Posted On: 18 JAN 2018 7:49PM by PIB Delhi

The Union Finance Minister Shri Arun Jaitley Chaired the 25^th Meeting of the GST Council in New Delhi today. The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25^thGST Council Meeting held today. These decisions of the GST Council are being communicated for general information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.

A. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

B. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

C. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:

D. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

5E LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

F.     LIST OF GOODS ON WHICHGST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

G LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO REFUND OF UNUTILISED INPUT TAX CREDIT:

H LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

I NIL GST RATE:

1. Vibhuti
2. Parts and accessories for manufacture of hearing aids.
3. De-oiled rice bran

J LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

K   CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

L CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

M. MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

It is proposed to issue notification giving effect to the recommendations of the Council on 25^th January, 2018 to be effective from 00 HRS on 25^th January, 2018

**********

DSM/SBS

(Release ID: 1517141) Visitor Counter : 10373

Related Topic on GST