“Key recommendations from the 50th GST Council Meeting: Changes in tax rates for various goods/services, trade facilitation measures, and compliance streamlining. Stay informed on the latest GST updates.”
The Goods and Services Tax (GST) Council meet in Delhi on July 11 for its 50th Meeting, and made the following recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST were made:
A. Changes in GST rates of Goods/Services
|
S.no. |
Item | New Rate/Exemption |
| 1. | Uncooked/unfried snack pellets. Also, to regularize payment of GST on uncooked /unfried snack pellets during the past period on “as is basis”. | 5% |
| 2. | Organizations in private sector involved in satellite launch services | Exempted |
| 3. | Supply of food and beverages in cinema halls. However, the sale of cinema ticket and supply of food and beverages if clubbed together then GST rate of cinema ticket will apply | 5% |
| 4. | On value of the chips purchased in casinos | 28% |
| 5. | Full value of the bets placed in Online Gaming |
28% |
| 6. | Zari thread or yarn known by any name in trade parlance | 5% |
| 7. | LD slag | 5% |
| 8. | Cancer fighting drugs, medicines for rare diseases and food products for special medical purposes |
Exempted |
| 9. | Full face value of Casino, Horse Racing and Online gaming | 28% |
B. Other Measures for facilitation of trade:
1. Amnesty schemes notified for non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-1 0 returns, revocation of cancellation of registration and deemed withdrawal of assessment orders issued under Section 62 of CGST Act, 2017 to be extended till 31.08.2023.
2. The relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23. Further, exemption from filing of annual return (in FORM GSTR-9/9A) for taxpayers having aggregate annual turnover upto two crore rupees, to be continued for FY 2022-23 also.
3. 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, and to clarify issues regarding taxability of internally generated services provided by one distinct person to another distinct person. This amendment may be made in GST law to make ISD mechanism mandatory prospectively for distribution of input tax credit of such common input services procured from third parties.
4. No GST is chargeable by the manufacturer on warranty replacement of parts and repair services during warranty period without any consideration from the customers and, no reversal of input tax credit is required to be made by the manufacturer, detailed circular to be issued in this regard.
5. 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 or body corporate are not taxable under RCM.
6. Goods Transport Agency (GTA) will not be required to file declaration for paying GST under forward charge every year.
7. Clarifying that mere holding of securities of a subsidiary company by a holding company cannot be treated as a supply of services and therefore, cannot be taxed under GST.
8. 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.
9. Refund of accumulated input tax credit (ITC) under Section 54(3) of CGST Act, 2017 for a tax period to be restricted to ITC on inward supplies reflected in FORM GSTR-2B of the same tax period or any previous tax period.
10. Requirement of only name of the State of the recipient, and not the name and full address of the recipient, on the tax invoice in case of supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient.
11 . A mechanism for system-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B with that made available in FORM GSTR-2B above a certain threshold.
12. Notification w.r.t GST Appellate Tribunal notified by the Centre with effect from 01.08.2023.
In case of any Query/Suggestion/Advice, reach out at [email protected]
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