Analysis of key Important GST amendment provisions as per 49th GST Council Meeting

1. Appeals and Revision:-

In Terms of Section 112 of the CGST Act, 2017,

The GoM report on the establishment of the GST Appellate Tribunal has been accepted and a final draft of the Tribunal’s setting up will be worked out.

2. 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

3. Assessment of Non- filers of Returns: – Where the registered person furnishes a valid return for the default period increased from 30 days to 60 days (extendable by another 60 days, subject to certain conditions.) of the service of the assessment order passed on best judgment basis, the said assessment order shall be deemed to have been withdrawn.

Further, 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 upto 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.

4. Registration related updates:- Extension of time limit for application for revocation of cancellation of registration and one time amnesty for past cases:- 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 authorised by him in this behalf for a further period not exceeding 180 days.

5. Exemptions from GST: – supply shall be exempt if 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 institutions.

6. Amendments of Section 47(2) (Annual Return) of the CGST Act:- late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year upto Rs 20 crore (>20 Crores existing Provision applicable), as below:-

7. Amnesty in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 To provide relief to a large number of taxpayers, the Council recommended amnesty schemes in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.

8. Place of Supply: – provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.