Recommendations of 47th GST Council Meeting
GST
Dated:- 29-6-2022
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 following r
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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%
*
Prepared/finished leather/chamois leather / composition leathers;
5%
12%
*
Refund of accumulated ITC not to be allowed on flowing goods:
* Edible oils
* Coal
Services
*
Services supplied by foreman to chit fund
12%
18%
*
Job work in relation to processing of hides, skins and leather
5%
12%
*
Job work in relation to manufacture of leather goods and footwear
5%
12%
*
Job work in relation to manufacture of clay bricks
5%
12%
*
Works contract 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
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ities/vendors, when end-user is the Defence forces.
Applicable rate
Nil
Services
1.
Transport 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.
C.2 In case of the following goods, exemption from GST will be withdrawn:
S. No.
Description of goods
From
To
GST rate changes
*
Cheques, lose or in book form
Nil
18%
*
Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed
Nil
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ties (registered persons).
* Services provided by the cord blood banks by way of preservation of stem cells
3.
Like CETPs, common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12% so as to allow them ITC
4.
Hotel accommodation priced upto Rs. 1000/day shall be taxed at 12%
5.
Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5% without ITC.
6.
Tax exemption on training or coaching in recreational activities relating to arts or culture, or sports is being restricted to such 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
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ly ash bricks. As a simplification measure, the condition of 90% content is being omitted.
E2 .Clarification in relation to GST rate on Services
1. Due to ambiguity in GST rates on supply of ice-cream by ice-cream parlours, GST charged @ 5% without ITC on the same during the period 1.07.2017 to 5.10.2021 shall be regularized to avoid unnecessary litigation.
2. Application fee charged for entrance or for issuance of eligibility certificate for admission or issuance of migration certificate by universities 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 fo
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isted Reproductive Technology (ART)/ In vitro fertilization (IVF) are covered under the definition of health care services for the purpose of exemption under GST.
12. Sale of land after leveling, laying down of drainage lines etc. is sale of land and does not attract GST.
13. Renting of motor vehicles for transport of passengers to a body corporate for a period (time) is taxable in the hands of body corporate under RCM.
14. The expression '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
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lying goods through ECOs, subject to certain conditions, such as-
* the aggregate turnover on all India basis does not exceed the turnover specified under sub-section (1) of section 22 of the CGST Act and notifications issued thereunder.
* the person is not making any inter-State taxable supply
* Composition taxpayers would be 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 in
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d to a taxpayer on account of accumulated ITC or on account of IGST paid on zero rated supply of goods or services, in contravention of rule 96(10) of the CGST Rules, is deposited by him along with interest and penalty, wherever applicable. A new FORM GST PMT-03Ais introduced for 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
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yers.
* Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued and E-wallet scheme not to be pursued further.
* Issuance of the following circulars in order to remove ambiguity 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
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der the said sub-rule shall mean the “specified officer” or “authorized officer”, as defined under SEZ Rules, 2006.
* Amendment in CGST Rules to provide for refund of unutilized 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[continu
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