Highlights of 47th GST Council Meeting

The GST Council’s 47th meeting was held in Chandigarh on 28th and 29th June 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

A number of goods and items are set to attract GST after the council approved changes in the tax rates with effect from July 18, 2022. The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure, Here’s is a list of items on which either the GST rate has been tweaked or exemption from GST has been withdrawn by the council.

31 Key Highlights of the GST Council Meeting are as below -

It has permitted the Taxpayers to amend their monthly tax returns (GSTR-3B)

A second -invoicing platform is offered by the government’s National Informatics Centre (NIC). A council decision was made to bring into action six invoice registration portals over the next six months.
Eliminating Revenue Leakage The Council has agreed to empower state officials and central officials to issue Show Cause Notices (SCNs) regardless of whether the taxpayer falls within their jurisdiction.
A new plan is under development to combat GST evasion.
The GoM recommends taxing hospital rooms and services.
GST on Printing, writing, or drawing ink increased from 12% to 18%.
GST on Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, and submersible pumps; Bicycle pumps increased from 12% to 18%
GST on Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in the milling industry or for the working of cereals, etc; Pawan Chakki that is Air Based Atta Chakki;
GST on LED Lamps, lights, and fixtures, their metal printed circuits board increased from 12% to 18%.
GST on Solar Water Heater and system increased from 5% to 12%.
GST on Prepared/finished leather/chamois leather/composition leathers increased from 5 to 12%.
GST on Refund of accumulated ITC not to be allowed on Edible oils & Coal.
GST on Services supplied by the foreman to chit fund increased from 12% to 18%.
GST on Job work in relation to the processing of hides, skins, and leather increased from 5% to 12%.
GST on Job work in relation to the manufacture of leather goods and footwear increased from 5% to 12% GST on Job work in relation to the manufacture of clay bricks increased from 5% to 12%.
GST on Works contracts for roads, bridges, railways, metro, effluent treatment plant, crematorium, etc increased from 12% to 18%.
GST on Works contracts supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals, etc. & sub-contractor thereof increased from 12% to 18%.
GST on Works contracts supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof increased from 5% to 12%.
In addition to clarifying that guest anchors’ services provided by TV channels in lieu of honoraria are subject to GST.
It should be taxed at 5 percent for patients’ rooms over R$ 5000 per day without ITC, depending on the amount charged.
GST Rate 5% from 12% – Ostomy, certain orthopedic appliances.
CST Rate 5% from 18% – Goods and passengers transportation by ropeways.
GST Rate 12% from 18% – Renting of Truck/ Goods Carriage where fuel cost included.
GST Rate 18% from 12% – Tetra Pak, work contract services from bridges, metro, roads, effluent treatment plant, crematorium GST Rate 1.5% from 0.25% – Polished Diamonds.
5% GST Rate – Honey, Dried Makhana, Curd, Wheat, Cereals, Curd, Meslin Flour, Jaggery, Puffed Rice.
The council provides relief for the transportation industry. On June 29, the Goods and Services Tax (GST) council cut GST on ropeways, exempted foreign components of tourism packages from GST, and lowered GST on goods carriages that include fuel costs, according to the Economic Times.
As per the report, 1.2 lakh small taxpayers also benefitted from the waiver of the registration requirement for small businesses with an annual turnover of up to Rs. 40 lakh and Rs. 20 lakh, respectively, using e-commerce platforms to sell products and being allowed to opt for the composite scheme.
12% GST Slab – Atlases, Charts, Maps, Hotel Rooms below 1K per day and 18% GST on Bank Fees for cheques.
The policy of exempting hotel accommodation under R 1,000 will be discussed: Report
Gold, and precious stones to be required to carry e-way bills by the GST council.
Provision for automatic revocation of suspension of registration in cases where suspension of registration was done by the system under Rule 21A(2A) of CGST Rules, for non-compliance in terms of clause (b) or clause (c) of sub-section (2) of section 29 [continuous non-filing of a specified number of returns], once all the pending returns are filed on the portal by the taxpayer. (Amendment in rule 21A) 2. Proposal for comprehensive changes in FORM GSTR-3B to be placed in the public domain for seeking inputs/suggestions of the stakeholders.
Time period from 01.03.2020 to 28.02.2022 to be excluded from the calculation of the limitation period for filing a refund claim by an applicant under sections 54 and 55 of CGST Act, as well as for the issuance of demand/ order (by a proper officer) in respect of erroneous refunds under section 73 of CST Act. Further, the limitation under section 73 for FY 2017-18 for issuance of an order in respect of other demands linked with a due date of annual return, is to be extended till 30th September 2023.