Goods and Services Tax – GST Dated:- 11-7-2023 – News – GST Council recommends Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value GST Council recommends notification of GST Appellate Tribunal by the Centre with effect from 01.08.2023 GST Council recommends exemption of cancer-related drugs, medicines for rare diseases and food products for special medical purposes from GST tax Recommends bringing down rates from 18 percent to 5 percent on 4 items – Uncooked, unfried extruded snack palettes, fish soluble paste, LD slag to be at par with blast furnace slag, and imitation zari thread GST Council also recommends several measures for streamlining compliances in GST The 50 th meeting of the Goods and Services Tax (GST) Council was held here today, under the chairpersonship of the Union Finance Corporate Affairs Minister Smt. Nirmala Sitharaman. To mark the milestone of 50th meeting of the GST Council, Chairperson
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
riod on as is basis . B. Other changes relating to goods 1. It has been decided to exempt IGST on Dinutuximab (Quarziba) medicine when imported for personal use. 2. It has been decided to exempt IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases enlisted under the National Policy for Rare Diseases, 2021 when imported for personal use subject to existing conditions. Similarly, IGST exemption is also being extended to FSMP when imported by Centres of Excellence for Rare Diseases or any person or institution on recommendation of any of the listed Centres of Excellence. 3. It has been decided to clarify that supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism and to regularise issues relating for the past period on as is basis . 4. It has been decided to reduce GST on imitation zari thread or yarn known by any name in trade parlance from 12% to 5% and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
on as is basis . 9. It has been decided to regularise the matters relating to dessicated coconut for the period 1.7.2017 to 27.7.2017 on as is basis in view of genuine interpretational issues. 10. It has been decided that on pan masala, tobacco products etc, where it is not legally required to declare the retail sale price, the earlier ad valorem rate as was applicable on 31st March 2023 may be notified in order for levy of Compensation Cess. 11. It has been decided to include RBL Bank and ICBC bank in the list of specified banks for which IGST exemption is available on imports of gold, silver or platinum and update the list of banks /entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023 . 12. Consequential changes in notifications may be carried out in view of new Foreign Trade Policy 2023. 13. It has been decided to regularise the issues relating to GST on plates and cups made of areca leaves prior to 01.10.2019. 14. I
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e option by GTAs to pay GST under forward charge shall be 31 st March of preceding Financial Year instead of 15 th March. 1 st January of preceding Financial Year shall be the start date for exercise of option. It has been decided to clarify that services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company or body corporate are not taxable under RCM. Only those services supplied by a director of company or body corporate, which are supplied by him as or in the capacity of director of that company or body corporate shall be taxable under RCM in the hands of the company or body corporate under notification No. 13/2017-CTR (Sl. No. 6) dated 28.06.2017. It has been decided to clarify that supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
at 28% on the full-face value of bets placed or on the GGR, the GST Council may decide. The GST Council has deliberated on the issues and has recommended the following: Suitable amendments to be made to law to include online gaming and horse racing in schedule III as taxable actionable claims. All three namely Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28%. Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming. Measures for facilitation of trade: Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023: The Council has recommended the Rules governing appointment and conditions of President and Members of the proposed GST Appellate Tribunal for enabling smooth const
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Y 2022-23 also. The Council has recommended to clarify through a circular that Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law, and also to clarify issues regarding taxability of internally generated services provided by one distinct person to another distinct person. The Council has also recommended that amendment may be made in GST law to make ISD mechanism mandatory prospectively for distribution of input tax credit of such common input services procured from third parties. Circular to be issued to provide clarity on various issues pertaining to the GST liability as well as the liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period without any consideration from the customers, clarifying inter alia that no GST is chargeab
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ices, as the case may be, is made after the time limit provided under rule 96A of CGST Rules, 2017 . Circular to be issued to provide clarification regarding TCS liability under Sec 52 of the CGST Act, 2017 in cases where multiple E-commerce Operators (ECOs ) are involved in a single transaction of supply of goods or services or both. To ease compliance burden of the taxpayers, clause (f) of rule 46 of CGST Rules, 2017 to amended to provide for requirement of only name of the State of the recipient, and not the name and full address of the recipient, on the tax invoice in cases of supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large : Clarifying that the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Circular No. 183/15/2022-GST dated 27 th December, 2022 was issued to provide for the procedure for verification of input tax credit in cases involving difference in Input Tax Credit availed in FORM GSTR-3B vis a vis that available as per FORM GSTR-2A during FY 2017-18 and 2018-19 . To provide further relief to the taxpayers, the Council recommended for further issuance of a circular to provide for similar procedure for verification of input tax credit in cases involving difference in Input Tax Credit availed in FORM GSTR-3B vis a vis that available as per FORM GSTR-2A during the period 01.04.2019 to 31.12.2021 . Special procedure to be provided under section 148 of CGST Act, 2017 to enable manual filing of appeal against the orders passed by proper officers in respect of TRAN-1/ TRAN-2 claims of the registered persons, filed in pursuance of the directions of Hon ble Supreme Court in case of the Union of India v/s Filco Trade Centre Pvt. Ltd. Rule 1
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nder chapter 71, the Council has recommended to insert rule 138F in CGST Rules, 2017 , as well as in SGST Rules, 2017 of the States, who want to mandate the requirement of generation of e-way bills for intra-State movement of gold and precious stones under Chapter 71 within their States. In accordance with the recommendations of the Group of Ministers (GoM) on Capacity based taxation and Special Composition Scheme approved by the Council in 49 th meeting, the Council has made the following recommendations: issuance of notification under section 148 of CGST Act, 2017 prescribing a special procedure to be followed by the manufacturers of tobacco, pan masala other similar items inter alia for registration of machines and for filing of special monthly returns; insertion of section 122A in CGST Act, 2017 providing for special penalty for non-registration of machines by such manufacturers; provisions of section 123 of Finance Act, 2021
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
gistered persons who do not furnish the details of valid bank account under rule 10A with the time period prescribed under the said rule. Insertion of 3 rd proviso in rule 21A(4 ) to provide for automatic revocation of such system-based suspension upon compliance with provisions of rule 10A. Amendment in rule 59(6) to provide that where a registered person has not furnished details of a valid bank account under rule 10A, the said registered person may not be allowed to furnish the details of outward supplies in FORM GSTR-1 or using IFF. Amendment in rule 9 and rule 25 to do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant and also to provide for physical verification in high risk cases even where Aadhaar has been authenticated. Pilot to be conducted in U.T. of Puducherry for risk-based biometric-based Aadhaar authentication of registration applicants. The State of Andhra Pr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
registered person. Mechanism to deal with differences in ITC between FORM GSTR-2B and FORM GSTR-3B : The Council has recommended a mechanism for system-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B above a certain threshold, along with the procedure of auto-compliance on the part of the taxpayers, to explain the reasons for the said difference or take remedial action in respect of such difference. For this purpose, rule 88D and FORM DRC-01C to be inserted in CGST Rules, 2017 , along with an amendment in rule 59(6) of CGST Rules, 2017 . This will help in reducing ITC mismatches and misuse of ITC facility in GST. To improve discipline in filing of annual returns, FORM GSTR-3A to be amended to provide for issuance of notice to the registered taxpayers for their failure to furnish Annual Return in FORM GSTR-9 or FORM GSTR-9A by due date. Rule 64 and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ered persons available on the common portal with other systems. The Council has also recommended issuance of a notification under section 158A of CGST Act, 2017 for notifying Account Aggregators as the systems with which information is to be shared by the common portal. The Council has recommended insertion of a clause (ca) in sub-section (1) of section 10 of the I GST Act, 2017 to clarify the place of supply in respect of supply of goods to unregistered persons. The GST Council has recommended to form a State level coordination Committee comprising of GST officers from both State and Central GST administrations for knowledge sharing on GST matters and coordinated efforts towards administrative and preventive measures. The 2nd interim report of the Group of Ministers (GoM) on IT System Reforms was also discussed by the Council. The GoM has recommended various measures to curb frauds in GST through System based measures for strengthening registration process
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =