Navigating the 50th GST Council Meeting: Key Insights and Expectations”
The meeting took place at Vigyan Bhawan, New Delhi, on July 11, 2023. Highlights include discussions on rate decisions for goods and services, recommendations of various groups of ministers, and compensation cess payment status.
Key Points:
- The first recommendation focused on reducing GST rates for specific goods:
- Reduction for items like unfried snack pellets, fish paste, zari threads, blast furnace, and more.
- Exemption on imported items for rare diseases.
- Regularizing GST on various issues:
- Tax on raw cotton supply by agriculturists to cooperatives.
- GST on trauma, spine, and arthroplasty implants.
- Desiccated coconut, plates/cups from areca leaves, and biomass briquettes.
- Discussion on GST for services:
- Exemption for satellite launches by ISRO and private organizations.
- GTAs exempted from filing declarations annually.
- Services of company directors in private capacity not taxable.
- Different GST rates for food and beverages in cinemas.
- Casinos, Race Courses, and Online Gaming Recommendations:
- Debated applying 28% GST on full value of bets or GGR.
- Uniform 28% rate for casinos, online gaming, and horse racing.
- Tax on full value of chips, bets, or gaming revenue.
- GST Compliance and Measures:
- E-Way bill for intra-state movement of gold and precious stones.
- Special procedure for tobacco manufacturers’ registration.
- Amendments for risk-based Aadhaar authentication.
- ITC claims in GSTR-3B vs. GSTR-2B intimation.
- Rules amended for OIDAR service providers.
- Exemption of duty-free shop supplies from GST.
These discussions reflect ongoing efforts to enhance GST regulations, rates, and compliance for a more efficient and effective tax system.
- Adjusted Total Turnover:
- Export goods value to be included under Rule 89(4) for calculating adjusted total turnover.
- Rule 96A Clarification:
- Clarification issued for refund admissibility in cases of delayed export of goods or realization of payment for exported services.
- TCS Liability:
- Circular to provide clarity on TCS liability when multiple e-commerce operators are involved in one transaction.
- Simplified State Name for Services:
- Supply of taxable services through e-commerce or OIDAR suppliers to unregistered recipients requires only the state name.
- Upcoming Circulars:
- E-invoice generation for supplies to government departments.
- Clarification on calculation of interest for wrongly availed IGST credit.
- Clarification regarding holding securities of subsidiary company.
- Verification of ITC claims with GSTR-3B vs. GSTR-2A differences.
- Manual filing of appeals for TRAN-1/TRAN-2 claims.
- Extension of amnesty schemes for non-filing of Forms GSTR-4, GSTR-9, and GSTR-10.
- Amnesty extended for revocation of registration cancellation.
- Extended deadlines for filing GSTR-1, GSTR-3B, and GSTR-7 in Manipur.
Expectations:
- Exemption for cancer cures drugs or lifesaving drugs.
- 28% GST rate on casinos, horse racing bets, and online gaming.
- Proposal for new rule on excess Input Tax Credit (ITC) claims.
- Intimation for mismatch in liability through DRC-01B form.
- Establishment of GST Appellate Tribunals (GSTATs).
- Suggestion to accept 50% of dues as a temporary provision.
- Consideration of 28% GST rate on casinos, online gaming, and horse racing.
- Changes in e-invoicing timelines.
- Scrutiny of GST returns through automation and expansion of taxpayer base.
- E-way bill rules for transportation of gold and precious metals.
- TCS for multiple e-commerce transactions.
- Other expectations regarding millet goods, cancer medicine rates, and more.
The meeting reflects efforts to streamline and enhance GST regulations, covering a wide range of topics for a more efficient tax system.
In conclusion,
the 50th GST Council Meeting held on July 11, 2023, showcased the council’s proactive efforts in refining the GST framework. Discussions spanning various aspects of taxation, including rates, exemptions, compliance, and technology integration, highlight a dedicated approach toward ensuring a streamlined and efficient tax ecosystem. As expectations for the future align with transparency, fairness, and adaptability, this meeting marks another step in the ongoing evolution of the GST regime.
