SUMMARY OF 49TH GST COUNCIL MEETING

Announcements By - Deepak Raj M C

AMNESTY SCHEME IN FORM GSTR-4, GSTR-9 & GSTR-10

 

To provide relief to a large number of taxpayers, the Council has recommended Amnesty schemes in respect of pending returns in

Form GSTR-4 (Composition Scheme)

Form GSTR-9 (Annual Returns) and

FORM GSTR-10 (Final Returns)

by way of conditional waiver/ reduction of late fee.

RATIONALISATION OF LATE FEES FOR FORM GSTR-9 FY 2022-23 ONWARDS

 

Registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year:	Rs. 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
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 (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).

 

EXTENSION OF TIME FOR FILING RETURN FOR WITHDRAWAL OF BEST JUDGEMENT 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 CONDITIONAL DEEMED WITHDRAWAL OF ASSESSMENT ORDERS

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 up-to 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.

 

CHANGES IN GST RATES OF GOODS

 

Sr. No.	Description	From	To
1.	‘Rab’	18%	5% – if sold prepackaged and labelled Nil – if sold otherwise
2.	Pencil Sharpener	18%	12%

 

 

OTHER CHANGES IN GST RATES OF GOODS & SERVICES

• 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
• 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.
• 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
• 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
• It has been decided to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard   to   payment   of   GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers

EXTENSION OF TIME LIMIT FOR APPLICATION  FOR  REVOCATION  OF  CANCELLATION OF REGISTRATION

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.

 

ONE TIME AMNESTY FOR PAST CASES

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.

 

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.

APPROVAL OF THE REPORT OF GOM ON CAPACITY BASED TAXATION AND SPECIAL COMPOSITION SCHEME IN CERTAIN SECTORS ON GST:

With a view to plug the leakages and improve the revenue collection from the commodities like pan masala, gutkha, chewing tobacco, the Council approved the recommendations of the 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

GST COMPENSATION

Government of India has decided to clear the entire pending balance GST compensation of Rs. 16,982 crore for June’2022. Since, there is no amount in the GST compensation Fund, 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.