“Explore the 15 major decisions taken in the 50th GST Council meeting held on 11th July 2023, including GST rate reductions, exemptions for cancer-related drugs, and measures for trade facilitation. Stay informed about changes in GST tax rates, compliance procedures, and initiatives to streamline processes. The decisions made by the GST Council will become part of the GST law through future notifications issued by CBIC. For detailed insights and professional advice, consult IGTM Tax Advisory.”
The 50th Meeting of the GST Council was held on 11th July 2023 in New Delhi, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
The author would like to attract the attention toward the General term in GST Law “The Government may, on the recommendations of the Council, by notification,” The decision made by the GST council will be the part of GST law in near future after notification issued by CBIC.
The GST Council inter-alia made the following recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
1. The council exempted cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from GST.
2. The council approved a GST rate reduction on four items.
| Name of Items | Earlier Rate | After 50th GST Meeting |
| Uncooked, unfried, and extruded snack palettes | 18% | 5% |
| Fish soluble paste | 18% | 5% |
| LD slag to be at par with blast furnace slag | 18% | 5% |
| Imitation Zari thread | 12% | 5% |
| Food served in cinema halls | 18% | 5% |
3. compensation cess notification to include all utility vehicles by whatever name called provided they meet the parameters of Length exceeding 4000 mm, Engine capacity exceeding 1500 cc and having Ground Clearance of 170 mm.
4. GST exemption on satellite launch services supplied by organizations in private sector also to encourage startups.
5. GTAs will not be required to file a declaration for paying GST under forward charge every year. financial years unless they file a declaration that they want to revert to reverse charge mechanism (RCM).
6. 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.
7. Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023. GST Appellate Tribunal may be notified by the Centre with effect from 01.08.2023,
8. The activities of online gaming, horse racing and casinos should be taxed at 28% on the full-face value of bets placed or on the GGR,
9. 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.
10. Special procedure for Manual Appeal for Trans-1 case.
11. Extension of Amnesty sheme upto 31st August 2023.
12. E-way New Rule 138F movement of Gold/ Precious stones under chapter 71
13. Automated suspension/revocation of GST registration non updating of Bank Account
14. Procedure for Recovery of Tax and Interest in terms of Rule 88C(3): FORM GST DRC-01D
15. Mechanism to deal with differences in ITC between FORM GSTR-2B and FORM GSTR-3B Rule-88D- Form DRC-01C.
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(Adv Rajbir Singh) | IGTM Tax Advisory
Disclaimer: The information contained in this write up is to provide a general knowledge to the intended user. Hence, we recommend that professional advice is sought before taking any action on specific issues before entering into any investment or financial obligation based on this Content.
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