Minutes of the 13th GST Council Meeting held on 31st March 2017
13th GST Council Meeting Dated:- 31-3-2017 GST Council – Minutes
GST
Minutes of the 13th GST Council Meeting held on 31st March 2017
The thirteenth meeting of the GST Council (hereinafter referred to as 'the Council') was held on 31 March 2017 in Vigyan Bhavan, New Delhi under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the Council who attended the meeting is at Annexure 1. The list of officers of the Centre, the States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2,
2. The following agenda items were listed for discussion in the 13th Meeting of the Council-
1. Confirmation of the Minutes of the 12th GST Council Meeting held on 16 March 2017
2. Approval of the Draft GST Rules on:
(a) Input Tax Credit
(b) Valuation
(c) Transitional Provisions
(d) Composition
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version of the Secretary to the Council (hereinafter referred to as 'Secretary') in paragraph 12.6 of the Minutes, in regard to levy of value Added Tax (VAT) on 'Bidi'; though recorded correctly, created an impression that VAT was charged only in six States. He stated that upon further inquiry, it had come to his notice that VAT on 'Bidi' was levied in about 21 States, namely, Rajasthan (65%), Jammu & Kashmir (40%), Himachal Pradesh (22%), Delhi (20%), Tamil Nadu (14.5%), Punjab (14.3%), Uttar Pradesh (14%), Madhya Pradesh (65%), Chandigarh (20%), Haryana (13.125%), Maharashtra (13.5%), Andhra Pradesh (exempt), Telangana (exempt), Karnataka (exempt), Chhattisgarh (5%), Odisha (10%), Assam (30%), West Bengal (exempt), Jharkhand (5%), Bihar (15%), Uttarakhand (20%), Goa (25%), Puducherry (14.5%), Kerala (14.5%) and Gujarat (22.5%). The Secretary stated that in order to avoid any confusion, his version recorded in this paragraph could be slightly modified and the w
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stions to amend the various provisions of the Rules. He stated that the Rules would be revised on the basis of these suggestions and circulated to the States within a day. He then invited Shri Upender Gupta, Commissioner (GST Policy Wing), Central Board of Excise and Customs (CBEC) to make a brief presentation on these four Rules. In his presentation, the Commissioner (GST Policy Wing), CBEC, outlined the salient features of the GST Rules on (a) Input Tax Credit; (b) Valuation; (c) Transitional Provisions; and (d) Composition. The presentation is attached as Annexure 3 to the Minutes .
6.2. The Secretary informed that the comments of the officers on these four Rules had already been taken note of and invited further comments of the Hon'ble Members of the Council. The Hon'ble Minister from Kerala pointed out that Rule 5 of the Valuation Rules relating to supply of lottery tickets was complex and enquired whether this stood deleted in light of the officers' level discus
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and Debit/Credit Note had been put in the public domain earlier and the four new Rules also needed to be put in the public domain at the earliest. He suggested that the Council could approve the four new Rules and authorise the Law Committee of Officers to make minor changes and inform the Council. The Hon'ble Chairperson stated that a more appropriate approach would be for the Council to approve these four draft Rules along with the changes agreed upon today by the officers. These Rules could then be circulated to the States and also put in the public domain and after taking note of the comments received from the public, final version of the Rules would be brought to the Council for its approval. The Council agreed to this suggestion.
6.4. The Hon'ble Minister from Jammu & Kashmir stated that the Goods and Services Tax Network (GSTN) should be open to incorporating small changes that might arise in the Jammu & Kashmir GST Rules drafted in exercise of the powers conferred unde
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ansitional Provisions; and Composition along with the changes agreed upon during the meeting of the officers held on 31 March, 2017. The Council further approved that these Rules would be circulated to the States and would be put in the public domain, and after taking note of the comments received from the public, final version of these Rules would be brought to the Council for its approval.
Agenda Item 3: Approval of amendments to the five Draft GST Rules approved in the 2nd Meeting ofthe GST Council held on 30 September 2016, namely (a) Registration; (b) Return; (c) Payment; (d) Refund; and (e) Invoice and Debit/Credit Note:
8.1. Introducing this agenda item, the Secretary informed that the five GST Rules relating to Registration; Return; Payment; Refund; and Invoice and Debit/Credit Note had been approved by the Council in its 2nd Meeting held on 30 September, 2016, but subsequently changes had to be made to them for various reasons like comments from stakeholders, changes in the
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ess Process Report on Return, it was provided that where the value of an outward supply of a taxpayer was less than Rs. 50,000, and it did not have the address on record of the purchaser, it would be treated as an intra-State supply. He stated that this would be detrimental to the revenue interest of the smaller States of the North-East region and that this provision could be misused by the unscrupulous persons to escape threshold for registration or to stay within the Composition threshold. He added that this issue was discussed in a meeting chaired by the Revenue Secretary on 20 October, 2016 where it was agreed that the Law Committee of Officers would re-examine this issue but the provision had remained unchanged. He suggested that the monetary limit should be lowered from Rs. 50,000 to Rs. 20,000. He added that this was also proposed by some other smaller States of North-East like Meghalaya and Arunachal Pradesh during the officers' meeting held in the morning. The Secretary st
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od quality outlets for high value consumer products in the smaller States of the North-East, if necessary, through co-operative societies and that this would encourage local purchase of high value consumer goods.
8.3. The Secretary suggested that the five Rules with the suggested amendments, including those which were agreed upon in the officers meeting in the morning, could be approved and that these amended Rules could be shared with the States and also put in the public domain. The Council agreed to this suggestion.
9. For agenda item 3, the Council approved the amended five GST Rules, namely, Registration; Return; Payment; Refund; and Invoice and Debit/Credit Note including the amendments suggested during the meeting of the officers held in the morning and agreed to circulate it to the States and to also put them in the public domain.
Agenda Item 4: Any other agenda item with the permission of the Chairperson
10. The Hon'ble Minister from Chhattisgarh stated that as Entry 5
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The Council agreed to this suggestion.
11. The Hon'ble Chairperson stated that the officers would have to start work on fitment of rates of goods and services under GST. The desirability of sharing the proposed rates of tax on goods and services in advance of the Meeting of the Council was discussed. The Hon'ble Minister from Jammu & Kashmir stated that the proposed rates of tax should not be put in public domain in advance as this would create distortions in the market. The Hon'ble Minister from Kerala supported this suggestion. The Hon'ble Deputy Chief Minister of Delhi stated that their present practice was not to inform the proposed changes to the rates of VAT in advance as this led to hoarding and black marketing of goods and suggested that the rates of tax should not be notified in advance in the GST regime. The Secretary suggested that the agenda relating to GST rates of goods and services could be brought on the table for the Council's discussion on the da
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in case such a scheme was continued by the Central Government, then only 58% of the total CGST amount shall be reimbursed to the eligible industries in the States where area-based Central Excise exemption was in force. He informed that the Department of Industrial Policy and Promotion (DIPP) in the Ministry of Commerce and Industry was devising a re-imbursement scheme and stated that they should be ready with the scheme before 1 July 2017. He also advised that the Tax Research Unit in the Department of Revenue should follow up this matter with the DIPP.
13. The Hon'ble Minister from Uttar Pradesh stated that his State had an outstanding CST compensation due of Rs. 280 crore and enquired as to when this would be disbursed by the Central Government. The Secretary stated that 50% of the compensation amount had already been disbursed as part of the first instalment and that the remaining 50% was due to be paid today. He stated that an additional compensation requirement of Rs. 1,000 c
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ouncil
15. The Hon'ble Chairperson observed with satisfaction that the nine primary GST Rules had been approved by the Council. He observed that the next important items of work for the roll out of GST were to complete the drafting of the remaining minor GST Rules and to complete the fitment of GST rates of goods and services. He stated that the remaining Rules should be drafted by the Law Committee of Officers at an early date and should be put in the public domain. He further stated that after taking into account the comments from the public, the remaining GST Rules should be presented to the Council for approval during its next meeting. He further stated that the officers would prepare the fitment rates for goods and services and bring it for discussion in the next Meeting of the Council. After deliberation, the Council agreed to hold its next meeting on 18 and 19 May, 2017 in Srinagar.
16. The meeting ended with a vote of thanks to the Chair.
(Arun Jaitley)
Chairperson, GST
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11
Karnataka
12
Kerala
Dr. Thomas Isaac
13
Madhya Pradesh
Shri Jayant Malaiya
14 Maharashtra
15 Nagaland
16 Punjab
17
Rajasthan
18
Tamil Nadu
Shri D. Jayakumar
19
Telangana
Shri Etela Rajender
Finance Minister
20
Uttar Pradesh
Shri Rajesh Agarwal
Finance Minister
21 Uttarakhand
Shri Prakash Pant
Finance Minister
Shri Manpreet Singh Badal
Shri Rajpal Singh
Shekhawat
Minister Industries
–
Minister – Finance, Fisheries &
Administrative Reforms
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Annexure 2
List of officers who attended the 13th GST Council Meeting on 31 March 2017
S No
State/Centre
Name of the Officer
Charge
1
Govt. of India
Dr. Hasmukh Adhia
Revenue Secretary
2 Govt. of India
Shri Najib Shah
Chairman, CBEC
3
Govt. of India
Ms. Vanaja N. Sarna
4
Govt. of India
Shri Ram Tirath
Member (P&V), CBEC
Member (GST), CBEC
5 Govt. of India
Director General, DG-GST, CBEC
Shri Mahender Singh
6 Govt. of I
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Shri Vipin Kumar Singh
Shri Arun Goyal
Shri Shashank Priya
Assistant Director, Press
Additional Secretary
Commissioner
Commissioner
Joint Commissioner
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S No
State/Centre
Name of the Officer
24 GST Council
Ms. Thari Sitkil
Charge
Deputy Commissioner
25
GST Council
Shri Rakesh Agarwal
Assistant Commissioner
26
GST Council
Shri Kaushik TG
Assistant Commissioner
27 GST Council
Shri Shekhar Khansili
Superintendent
28 GST Council
Shri Manoj Kumar
Superintendent
29
GST Council
Shri Sandeep Bhutani
Superintendent
30 GST Council
Shri Amit Soni
Inspector
31
GST Council
Shri Anis Alam
Inspector
32 GST Council
Shri Ashish Tomar
Inspector
33
33
GST Council
Shri Alok Bharti
Inspector
34
GST Council
Shri Sharad Verma
35 GST Council
36 Andhra Pradesh
37
Andhra Pradesh
Shri Sher Singh Meena
Shri J. Syamala Rao
Shri T. Ramesh Babu
Shri Arun Kr. Mishra
Shri Ajitabh Mishra
38 Andhra Pradesh
Shri J.V.M. Sha
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Shri Vidya Sagar
Commissioner, Commercial Taxes
Joint Secretary (Tax)
Additional Chief Secretary
Commissioner, Excise & Taxation
Joint Commissioner, Excise &
Taxation
S No
State/Centre
Name of the Officer
50 Goa
Shri Dipak Bandekar
Charge
Commissioner, Commercial Taxes
51
Goa
Shri Upendra Joshi
OSD to CM
52 Gujarat
53 Gujarat
54 Haryana
55 Haryana
56 Haryana
57 Haryana
58
59
Himachal
Pradesh
Jammu &
Kashmir
Shri P.K. Bhat
60 Jharkhand
61 Jharkhand
62 Karnataka
63
Kerala
Shri Ritvik Pandey
Shri P. Mara Pandiyan
64 Kerala
65 Madhya Pradesh
66 Madhya Pradesh
67 Maharashtra
68 Maharashtra
Shri Joydeep Duhar
Shri Sanjay Bhardwaj
Shri Sanjay Kr. Prasad
Shri G.S. Kapardar
Dr. Rajan Khobragade
Shri Raghwendra Kumar
Singh
Shri Sudip Gupta
Shri Rajiv Jalota
Shri Dhananjay Akhade
Shri Kailiana Ralte
Shri R. Zosiamliana
Shri Asangba Chuba Ao
69 Mizoram
70 Mizoram
71 Nagaland
72 Nagaland
Shri Taliremba
73 Odisha
Shri Saswat Mishra
74
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r
84 Telangana
Shri Laxminarayan Jannu
85 Tripura
Shri P. Srivastava
86 Uttarakhand
Shri Ranveer Singh Chauhan
87 Uttarakhand
Shri Piyush Kumar
88 Uttarakhand
Shri Yashpal Singh
89
Uttar Pradesh
Shri R.K.Tiwari
90 Uttar Pradesh
Shri Vivek Kumar
91 Uttar Pradesh
92 Uttar Pradesh
93 West Bengal
Shri Nirak K. Maurya
Shri Amit Tyagi
Shri Khalid A. Anwar
Charge
Financial Commissioner (Taxation)
Advisor (GST), Govt. of Punjab
Deputy Commissioner, Commercial
Taxes
Commissioner, Commercial Taxes
Deputy Commissioner, Commercial
Taxes
Additional Chief Secretary
Joint Commissioner, Commercial
Taxes
Commissioner, Commercial Taxes
Joint Commissioner, Commercial
Taxes
Chief Resident Commissioner,
Tripura Bhavan
Commissioner, Commercial Taxes
Addl. Commissioner, Commercial
Taxes
Deputy Commissioner, Commercial
Taxes
Additional Chief Secretary
Additional Commissioner,
Commercial Taxes
Assistant Commissioner,
Commercial Taxes
Assistant Commissioner,
Comm
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ys
â–¡ Procedure for claim of credit by a banking company or a financial
institution including NBFC – Rule 3 (Pg.1)
0 not to avail ITC on inputs, etc. used for non-business purposes
0
50% of the eligible ITC will be credited to the electronic credit
ledger
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Rules for Input Tax Credit (2/4)
Procedure for distribution of ITC by ISD – Rule 4 (Pg.2)
0 ITC to be distributed in the same month in which it was availed
。 Separate distribution of eligible and ineligible ITC
0
O
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TAX
MARKET
central tax, State tax, integrated tax & Union territory tax to be
distributed separately
ITC to be distributed on pro-rata basis in ratio of the total turnover
in the State or Union Territory
method of distribution of Distribution of central tax, State tax,
integrated tax & Union territory tax
。 Separate ISD invoice or credit note to be issued
0 GSTR-6 to be filled
Rules for In
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tances-Rule 9 (Pg.8)
Conditions & restrictions in respect of inputs & capital
goods sent to job-worker – Rule 10 (Pg.8)
Rules for Valuation (1/5)
5
NATION
TAX
MARKET
Value of supply of goods or services or both where the
consideration is not wholly in money – Rule 3 (Pg.11)
0 open market value
0
0
sum total of consideration in money & any further amount in
money as is equivalent to the consideration not in money
value of supply of goods or services of like kind and quality
sum total of consideration in money & any further amount in
money as is equivalent to the consideration not in money as
determined though Rule 6 or 7
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Rules for Valuation (2/5)
INATION
TAX
MARKET
Value of supply of goods or services or both
between distinct or related persons, excluding
supply through agent – Rule 4 (Pg.12)
âš« open market value
。 value of supply of goods or services of like kind and
qualit
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s
o
O
0
value of supply provided by a person buying and selling second
hand goods
value of token, voucher, coupon etc. – equal to money value of
goods or services redeemable through such instrument
Value in case of certain notified supplier of services
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Rules for Valuation (5/5)
Value of supply of services in case of services
provided by pure agent – Rule 9 (Pg. 15)
Value in case of import or export
(Pg.15)
–
Rule 10
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Transitional Rules (1/2)
NATION
TAX
MARKET
To submit an application in respect of tax or duty credit carried
forward under any existing law or on goods held in stock on the
appointed day – Rule 1 (Pg. 17)
Provides for credit as available under existing law (Separate provisions
for CGST and SGST Act)
Details of stock and capital goods held on the appointed day to be
provided on the common portal
Special provision for availing credit @ 40% even if du
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stock held on the day
preceding the date of option
Option to be effective from the beginning of the year,
where the intimation is filed or the appointed date – Rule 2
(Pg.21)
Conditions and restrictions for availing scheme of
composition levy provided in Section 10 of the Act – Rule 3
(Pg.22)
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Rules for Composition levy (2/3)
NATION
TAX
MARKET
Time period for validity of option for paying tax
composition levy scheme – Rule 4 (Pg.22)
Valid till the taxable person satisfies all conditions
。 Voluntary withdrawal
。 Such option may be denied if the taxable person was not
eligible for such scheme and is served a notice accordingly
Person to furnish details of stock held on the day on which
option is withdrawn or denied
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Rules for Composition levy (3/3)
INATION
TAX
MARKET
Rate of tax of the composition levy for different category of
taxable persons – Rule 5 (Pg.23)
SI No. Cat
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Changes in Registration Rules (1/2)
TAX
MARKET
Certificate of registration to be digitally signed by the
proper officer – Rule 3 (Pg.3)
Application for registration by a non-resident taxable
person to be signed by his authorized signatory holding a
valid PAN – Rule 6 (Pg.4)
Rules updated for grant of registration to a person
supplying online information and data base access or
retrieval services – Rule 6A (Pg.4)
Procedure prescribed for grant or cancellation of Unique
Identity Number – Rule 9 (Pg.5)
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Changes in Registration Rules (2/2)
INATION
TAX
MARKET
Procedure for time bound approval or denial of
amendment in registration application – Rule 11 (Pg.6)
Provision made for submission of stock declaration along
with application for cancellation of registration – Rule 12
(Pg.7)
New Rule added to provide for cancellation of registration
in certain cases – Rule 13 (Pg.7)
Detailed procedure for migration of existing tax payers
Rule 16 (Pg
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on to raise
query in case Challan Identification Number (CIN) is
generated or generated but not communicated to the
Common Portal – Rule 3(8) (Pg.30)
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Changes in Refund Rules
INATION
TAX
MARKET
New Proviso for submission of application of refund by
supplier for supplies to Special Economic Zone – 3rd Proviso
to Rule 1(1) (Pg.34)
New rule for refund of advance tax deposited by non-
resident taxable person or casual taxable person
Proviso to Rule 1(1) (Pg.34)
–
5th
Formula for calculation of refund amount in case of Zero-
rated supply of goods or services or both under bond or on
payment of tax – Rule 1(4) (Pg.35)
Detailed provisions of Consumer Welfare Fund added
Rule 7 (Pg.39)
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Changes in Invoice Rules (1/2)
INATION
TAX
MARKET
Provides for special characters that could be included in invoice
serial number – Rule 1 (Pg.42)
New Rules for issuing a consolidated tax invoice on daily basis
instead of individual invo
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