This article covers all recommendations of 49th GST Council Meeting held on 18th February, 2023 at New Delhi. The GST Council has met 49 times since its constitution, and many important decisions were taken in this 49th GST Council meeting. Last GST council meeting held in new Delhi on 17th December,2022. This 49th GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman. 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.
One note that these are only recommendations of GST council meeting and the same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law
Changes in GST rates on Goods in 49th GST Council Meeting
|Sr No||Description of goods||Current GST Rate||Proposed GST Rate|
|1||Rab (Liquid jaggery)||18%||5% -If sold Pre-packaged and labelled|
Nil – If sold otherwise
Payment of GST on ‘rab’
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
No separate IGST shall be levied on such affixed device
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.
GST Exemption Benefits to call rejects
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 In case where refund is claimed by an unregistered person where agreement or contract for supply of service has been claimed, document checklist specified.
Scope of Exemption for Entrance Examination for admission to educational institutions is being enlarged
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.
Government of India has decided to clear the entire pending balance GST compensation of Rs. 16,982 crore for June’2022. 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.
|Sr No||Name of State/UT||Balance GST Compensation |
pending for June 2022 (Rs in crore)
|9||Jammu and Kahmir||210|
Approval of the Report of GoM on Capacity Based Taxation
In order to plug the leakages and to improve the revenue collection from the commodities like Pan masala, gutkha, chewing tobacco, the council approved the recommendation of 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
Special composition scheme in certain sectors on GST
A special composition scheme will be introduced for certain industries like Pan masala ,Gutkha, Tobacco etc.
Rationalization of provision of POS in GST
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. Hence, in case of supply of services of transportation of goods , where location of supplier of service or location of recipient of services is outside india – The Place of supply shall be the location of the recipient of services.
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.
Reduction in Late fee for Annual return in GST
Current Late fees of annual return in GST
|Rs 200 per day but maximum 0.5% of turnover in the State|
Proposed New Late fees from F.Y. 2022-23 onwards of annual return in GST
|Registered Person||Late fees|
|For registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year||Rs 50 per day but maximum 0.04% of turnover in the State|
|For 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 but maximum 0.04% of turnover in the State|
|For registered persons having an aggregate turnover of more than Rs. 20 crores in the said financial year||Rs 200 per day but maximum 0.5% of turnover in the State|
No change in late fees for late filling of GSTR-9 of registered persons having turnover exceeding Rs 20 crores in the said financial year.
GST Amnesty Scheme for pending returns
To provide relief to a large number of taxpayers, the council recommended amnesty schemes in respect of pending returns in FORM GSTR-4, GSTR-9 and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.
GSTR-4 – Annual return of Composition taxpayers
GSTR-9- Annual return of regular taxpayers
GSTR-10- Final return
Commercial services provided by the court/tribunal will be brought under RCM
GST will be applicable on RCM basis for service provided by court and tribunals such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.
Extension of Time limit for application of revocation in GST
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 authorized by him in this behalf for a further period not exceeding 180 days.
Amnesty in filling application for revocation in GST
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.
Proposed amendment in Best judgement Assessment in GST
- 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.
Amnesty Scheme for deemed withdrawal of best judgment assessment order
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
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