Recommendations of 49th GST Council Meeting dated 18.02.2023
The 49th GST Council Meeting dated 18.02.2023 made important recommendations in their meeting related to tax rates, tribunals, amnesty schemes. These shall come into effect once suitable amendments are made in law and Notifications are issued to give them effect.
Please find the below highlights of the same:
A. Amnesty Schemes
|Registration has been cancelled on account of non-filing of the returns but application could
not be filed within time limit
|To allow one-time filing of application for revocation upto a
certain specific date
|Major relief for cancelled GST registration only in case of non-filing of
returns.No reason to not extend the benefit in all cases
|Non-filing of GST returns within 30 days as per Section 62(2)||Conditional Deemed withdrawal of Best Judgement Assessment Order us 62 in past cases if GST and Interest paid and returns filed with late filing fees upto specified date|
|Pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10||Conditional waiver/ reduction of late fee|
B. Trade facilitation measures- Amendments in GST law/Rules
1. Extension of time limit for application for revocation of cancellation of registration by amending Section 30 and Rule 23
|Normal Time limit||30 days||90 days|
|Extended time limit by Joint/Additional Commissioner||Additional 30 days||–|
|Extended time limit by Commissioner or an officer authorized by him||Additional 30 days after days||60 Additional 180 days after 90 days|
KMA Comments: This is a much-awaited relief. However, the time limit is still very less and atleast 180 days should have been proposed
2. Amendment in Section 62(2) of CGST Act, 2017 to extend time line from 30 days to 60 days and extendable by another 60 days, subject to certain conditions for filing of pending GST returns and enabling deemed withdrawal of assessment order
3. Reduction of Late fees for Annual Return (GSTR-9) for F.Y. 2022-23
|Late filing fees for GSTR-9 (Aggregate turnover upto 5 Crs.)||Rs 200 per day (Rs. 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST)||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)|
|Late filing fees for GSTR-9 (Aggregate turnover more than 5 Crs. But upto 20 Crs.)||Rs 200 per day (Rs. 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST)||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)|
4. To delete 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.
C. Policy Changes
1. GST Appellate Tribunals
2. Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST (Tobacco sector)
D. Changes in GST rates/exemptions
1. Changes in GST Rates on Rab from 18% to 5% (if sold pre-packaged and labelled ) and Nil (If sold otherwise) and 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 rate
2. Exemption from IGST available on device like tag- tracking device or data logger if it is already affixed on a container as available for the containers under Notification No. 104/94-Customs
3. 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 person.
4. 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 institutions.
5. Now, GST under RCM is payable by recipeint of services on services provided by 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 etc.