Decisions taken in 50th GST Council Meeting held on 11th July 2023

The GST Council at its 50th meeting held on 11th July 2023 has taken the following key decisions.

Relaxations To Taxpayers

1. Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns and revocation of cancellation of registration, is now extended till 31.08.2023

2. No RCM on services supplied by 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

3. Transporters will not be required to file declaration for paying GST under forward charge every year

4. The special procedure regarding mismatch in ITC availed in GSTR-3B and 2A is now extended for two more years i.e 2019-20 and 2020-21.

5. The Relaxations that were provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C is to be continued for FY 2022-23 as well

6. No GSTR-9 for turnover upto 2 crores

Changes In Rates

7. Supply of food and beverages in cinema halls is taxable at 5%.

But, the sale of cinema ticket and supply of food and beverages clubbed together then gst rate of cinema ticket will apply.

8. 28% GST on the value of the chips purchased in casinos

9. 28% GST on the full value of the bets placed in Online Gaming

10. Tax rate for Zari thread or yarn known by any name in trade parlance has been reduced to 5% from 12%

11. GST rate on LD slag has been reduced from 18% to 5% to encourage better utilisation of this product and for protection of environment.

12. Cancer fighting drugs, medicines for rare diseases and food products for special medical purposes exempted from GST

Changes In Requirement of Physical Verification of Premises

13. Waived the requirement that the physical verification of business premises is to be conducted in the presence of the applicant

14. To provide for physical verification in high risk cases even where Aadhaar has been authenticated.

GST Tribunal

15. GST Tribunal is to be operational within 4-6 months in a phased manner, and the benches will be established in the state capital and in the city where the High Court benches are located.

Other Key Decisions

16. System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B

17. Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory prospectively

18. Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period

19. Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B

20. Only Name of state on tax invoice, not the name and full address of the recipient, in cases of supply of taxable services by or through an ECO