Goods and Services Tax – GST Dated:- 29-6-2022 – News – Recommendations of 47th GST Council Meeting GoM on Casino, Race Course and Online Gaming to re-examine the issues based on further inputs from States and submit its report within a short duration GoM to be constituted to address various concerns raised by the States on GST Appellate Tribunal and amendments in CGST Act GoM on IT Reforms, inter alia, recommended that the GSTN should put in place the AI/ML based mechanism All rate changes recommended by the 47th GST Council will be made effective from 18th July, 2022 The 47th GST Council met under the Chairmanship of Union Minister for Finance Corporate Affairs Smt. Nirmala Sitharaman here in Chandigarh today. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Choudhary besides Finance Ministers of States UTs and senior officers of the Ministry of Finance States/ UTs. The GST Council has inter-alia made the follow
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ps, submersible pumps; Bicycle pumps 12% 18% 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% Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery 12% 18% LED Lamps, lights and fixture, their metal printed circuits board; 12% 18% Drawing and marking out instruments 12% 18% Solar Water Heater and system; 5% 12%
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ract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. 12% 18% 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% Works contract supplied to central and state governments, union territories local authorities involving predominantly earthwork and sub-contracts thereof 5% 12% B. Other GST rate changes recommended by the Council S. No. Description From To Goods Ostomy Appliances 12
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IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces. Applicable rate Nil Services 1. T ransport 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% C Withdrawal of exemptions [Approval of recommendations made by GoM on rate rationalization] C1. Hitherto, GST was exempted on specified food items, grains etc when not branded, or right on the brand has been foregone. It has been recommended to revise the scope of exemption to exclude from it prepackaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk.
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Petroleum/ Coal bed methane 5% 12% Scientific and technical instruments supplied to public funded research institutes 5% Applicable rate E-waste 5% 18% C4. In case of Services, following exemptions are being rationalized: S. No. Description 1. Exemption on transport of passengers by air to and from NE states Bagdogra is being restricted to economy class 2 Exemption on following services is being withdrawn. Transportation by rail or a vessel of railway equipment and material. storage or warehousing of commodities which attract tax (nuts, spices, copra, ja
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h services when supplied by an individual. D. GST on casinos, race course and online gaming The Council directed that the Group of Ministers on Casino, Race Course and Online Gaming re-examine the issues in its terms of reference based on further inputs from States and submit its report within a short duration. E. Clarification on GST rate E1. Goods Electric vehicles whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5%. All fly ash bricks attract same concessional rate irrespective of fly ash content Stones covered in S. No.123 of Schedule-I (such as Napa stones), even if they are ready to use and polished in minor ways [not mirror polished], attract concessional GST rate of 5%. The GST rate on all forms of mango under CTH 0804, including mango pulp (other than mangoes sliced, dried) attract GST at the 12%. Entry is also being amended to
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is exempt from GST. 3. Ginned or baled fibre is covered in entry 24B of notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 in the category of raw vegetable fibres. The exemption under this entry is being rationalized 4. Services associated with transit cargo both to and from Nepal and Bhutan are covered by exemption under entry 9B of notification No. 12/2017-CT(R) dated 28.06.2017. 5. Activity of selling of space for advertisement in souvenirs published in the form of books is eligible for concessional GST at 5%. 7. Renting of vehicle with operator for transportation of goods on time basis is classifiable under Heading 9966 (rental services of transport vehicles with operators) and attracts GST at 18%.GST on such renting where cost of fuel is included in the consideration charged is being prescribed at 12%. 8. Allowing choice of location of a plot is part of supply of long term lease of plot of land. Therefore, location charge or prefe
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public transport used in the exemption entry at SI No. 17(d) of notification No. 12/2017-CT(R), which exempts transport of passengers by public transport other than predominantly for tourism purpose, in a vessel between places located in India, means that such transport should be open to public for point to point transport [e.g. such transport in Andaman and Nicobar islands]. Other miscellaneous changes 1. All taxable service of Department of Posts would be subject to forward charge. Hitherto certain taxable services of Department of post were taxed on reverse charge basis. 2. Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercised at the beginning of Financial Year. RCM option to continue. 3. Service provided by Indian Tour operator to a foreign resident for a tour partially in India and partially outside India is to be subject to tax proportionate to the tour conducted in India
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allowed to make intra-State supply through e-commerce operators subject to certain conditions. 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. 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 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. Amendment in CGST Rules for handling of pending IGST refund claims : In some cases where the expo
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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. 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- retrospective amendment in section 50(3) of CGST Act, with effect from 01.07.2017,to provide that interest will be payable on the wrongly availed ITC only when the same is utilized; amendment in sub-section (10) of section 49 of CGST Act to provide for transfer of balance in electronic cash ledger of a registered person to electronic cash ledger of CGST and IGST of a distinct person. 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
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mbiguity and legal disputes on various issues, thus benefiting taxpayers at large: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification. Clarification on various issues relating to applicability of demand and penalty provisions under the CGST Act in respect of transactions involving fake invoices. Clarification on mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B. Clarification in respect of certain GST related issues: Clarification on the issues pertaining to refund claimed by the recipients of supplies regarded as deemed export; Clarification on various issues relating to interpretation of section 17(5) of the CGST Act ; Clarification on the issue of perquisites provided by employer to the employees as per contractual agreement; Cla
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ilized 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. 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 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 )
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