“Explore key decisions from the 50th GST Council meeting on tax rates, administrative measures, and exemptions. Stay informed on GST updates and recommendations for smoother compliance.”
The 50th meeting of GST Council was held on 11.07.2023. In the 50th Council meeting, a short film on ‘GST Council – 50 steps towards a journey’ was released, besides release of a special cover ‘My stamp’ of Indian post office. The Council took various steps and measures towards trade facilitation and streamlining the GST compliances which, inter alia, include few tax rate changes on goods and services, acceptance of report of Group of Ministers on GST on casinos, race courses and online games and deciding rate of 28% thereon, approval of GSTAT rules for appointment, classifications on various issues, recovery of tax and interest under rule 88C(3), mechanism for differences in ITC between forms 2B and 3B, registration, returns, compensation cess on SUVs, exemption from IGST on certain imported medicines, extension of date for amnesty scheme notified in March, 2023, extension of exemption for filing form GSTR-9 / 9C, directors services in personal capacity not to be covered under reverse charge and so on.
Major decisions or recommendations of the Council as follows:
- Clarification on GST rates on goods and services
- To set up state level coordination committee for GST knowledge sharing and administrative collaboration
- Clarification on place of supply of goods supplied to unregistered persons (IGST)
- Exemption / rate reduction for certain medicines imported for personal use
- Compensation cess @ 22% on SUVs; SUVs redefined to include vehicles with length exceeding 4000 mm, engine capacity exceeding 1500 cc and ground clearance of 170 mm or more.
- Clarification that no GST is chargeable by manufacturer on replacement of parts or repair services including warranty or during warranty period and that no reversal of input tax credit is required to be done by the manufacturer.
- Consent based sharing of information with account aggregators, new rule 163 in CGST Rules.
- Rules finalized for appointments to GSTAT- to start with state capitals.
- Special procedure to be followed to enable manual appeal filing against TRAN-1 / TRAN-2 related claims / orders.
- Mechanism to address ITC differences between Forms 2B and 3B.
- 28% GST rate on full value of the bets placed for horse races or online games and value of chips purchased for casinos to be taxed at uniform rates.
- Services of directors in their personal capacity to company not to be under reverse charge mechanism.
- Extension of time for amnesty schemes for non-filers / registration revocation
- RBL bank and ICBC Bank included in list of specified banks for which IGST exemption is allowed on import of gold, silver and platinum.
- Exemption on satellite launch services supplied by ISRO / NSIL extended to private sector.
- No declaration to be filed by GTA’s for paying GST under forward charge every year. Option once exercised to continue unless a declaration is filed to the contrary.
- GST on food and beverages supplied in cinema halls is taxable like restaurants @ 5%. However, if same is included in ticket price as a composite supply, GST shall be levied @ 18% or 12%, based on cost of ticket.
- Exemption from filing of annual return (Form GSTR 9 /9A) for taxpayers having aggregate annual turnover up to Rs. 2 crores shall continue for FY 2022-23.
- Clarification that Input Service Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to distinct persons.
The recommendations of GST Council shall come into force only after being notified and / or clarificatory circulars issued by the CBIC.
Author Bio
Sir,
Whether the decision of GST council for taxing Games on full value of the bet placed,.is Constitutionally valid. Refer my analysis in (2023) 40 J.K.Jains GST & VR 1 in the case of GAMESKRAFT TECHNOLOGIES PRIVATE LIMITED v, DGGI & Ors.(Bom)
CA Om Prakash Jain s/o J.K.Jain, Jaipur Tel:9414300730/9462749040 0141-3484043