Besides, the first set of a special cover and customised ‘My Stamp<\/strong>‘ were also presented on this occasion to Hon’ble Chairperson and Hon’ble Members of the Council by the Chief Post Master General, Delhi.<\/p>\n The GST Council inter-alia <\/em>made the following recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.<\/p>\n Recommendations relating to GST rates and other provisions<\/u><\/strong> <\/u>on Goods<\/u><\/strong><\/p>\n Changes in GST rates of goods – Uncooked\/unfried snack pellets, by whatever name called<\/strong> <\/strong>\n<\/p>\n It has been decided to reduce the rate on uncooked\/unfried snack pellets, by whatever name called, to 5% and to regularize payment of GST on uncooked \/unfried snack pellets during the past period on “as is basis”.<\/p>\n Exemption from IGST on Dinutuximab (Quarziba) medicine when imported for personal use<\/strong><\/p>\n It has been decided to exempt IGST on Dinutuximab (Quarziba) medicine when imported for personal use.\n <\/p>\n Exemption from IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases<\/strong>\n <\/p>\n It has been decided to exempt IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases enlisted under the National Policy for Rare Diseases, 2021 when imported for personal use subject to existing conditions. Similarly, IGST exemption is also being extended to FSMP when imported by Centres of Excellence for Rare Diseases or any person or institution on recommendation of any of the listed Centres of Excellence.\n <\/p>\n Raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism<\/strong>\n <\/p>\n It has been decided to clarify that supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism and to regularise issues relating for the past period on “as is basis”.<\/p>\n Reduction in GST on imitation zari thread or yarn<\/strong>\n <\/p>\n It has been decided to reduce GST on imitation zari thread or yarn known by any name in trade parlance from 12% to 5% and to regularize payment of GST related to this matter during the past period on “as is basis”.\n <\/p>\n Compensation rates on all utility vehicles<\/strong>\n <\/p>\n It has been decided to amend the entry 52B in compensation cess notification to include all utility vehicles by whatever name called provided they meet the parameters of Length exceeding 4000 mm, Engine capacity exceeding 1500 cc and having Ground Clearance of 170 mm & above and to clarify by way of explanation that ‘Ground clearance’ means Ground Clearance in un-laden condition.\n <\/p>\n Reduction in GST rate on LD slag<\/strong>\n <\/p>\n It has been decided to reduce GST rate on LD slag from 18% to 5% to encourage better utilisation of this product and for protection of environment.\n <\/p>\n To regularize the matters relating to trauma, spine and arthroplasty implants<\/strong>\n <\/p>\n It has been decided to regularize the matters relating to trauma, spine and arthroplasty implants for the period prior to 18.07.2022 on “as is basis” in view of genuine interpretational issues.\n <\/p>\n Reduction in the GST rate on fish soluble paste<\/strong>\n <\/p>\n It has been decided to reduce the GST rate on fish soluble paste from 18% to 5% and to regularize payment of GST on fish soluble paste during the past period on “as is basis”.\n <\/p>\n To regularize the matters relating to dessicated coconut<\/strong>\n <\/p>\n It has been decided to regularize the matters relating to dessicated coconut for the period 1.7.2017 to 27.7.2017 on “as is basis” in view of genuine interpretational issues.\n <\/p>\n Ad valorem rate for levy of Compensation Cess on pan masala, obacco products etc where it is not legally required to declare the retail sale price<\/strong>\n <\/p>\n It has been decided that on pan masala, tobacco products etc, where it is not legally required to declare the retail sale price, the earlier ad valorem rate as was applicable on 31st March 2023 may be notified in order for levy of Compensation Cess.\n <\/p>\n RBL Bank and ICBC bank in the list of specified banks as per Annexure 4B (HBP) of Foreign Trade Policy 2023<\/strong>\n <\/p>\n It has been decided to include RBL Bank and ICBC bank in the list of specified banks for which IGST exemption is available on imports of gold, silver or platinum and update the list of banks \/entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023.\n <\/p>\n Consequential changes in notifications may be carried out in view of new Foreign Trade Policy 2023.\n <\/p>\n To regularize the matters relating to GST on plates and cups made of areca leaves<\/strong> \n <\/p>\n It has been decided to regularise the issues relating to GST on plates and cups made of areca leaves prior to 01.10.2019.\n <\/p>\n To regularize the matters relating to GST<\/strong> on biomass briquettes<\/strong>\n <\/p>\n It has been decided to regularise the issues relating to GST on biomass briquettes for the period 01.7.2017 to 12.10.2017.<\/p>\n Recommendations relating to GST rates and other provisions on Services<\/u><\/strong><\/p>\n Exemption on satellite launch services supplied by ISRO, Antrix Corporation Limited and New Space India Limited (NSIL)<\/strong><\/p>\n It has been decided that GST exemption on satellite launch services supplied by ISRO, Antrix Corporation Limited and New Space India Limited (NSIL) may be extended to such services supplied by organizations in private sector also to encourage start ups.<\/p>\n GTA: Relief from declaration for paying GST under forward charge<\/strong><\/p>\n As a trade friendly measure, it has been decided that GTAs will not be required to file declaration for paying GST under forward charge every year. If they have exercised this option for a particular financial year, they shall be deemed to have exercised it for the next and future financial years unless they file a declaration that they want to revert to reverse charge mechanism (RCM).<\/p>\n It has also been decided that the last date of exercising the option by GTAs to pay GST under forward charge shall be 31st March of preceding Financial Year instead of 15th March. 1st January of preceding Financial Year shall be the start date for exercise of option.<\/p>\n Services supplied by a Director of a company in his private or personal capacity not taxable under RCM<\/strong><\/p>\n It has been decided to clarify that 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. Only those services supplied by a director of company or body corporate, which are supplied by him as or in the capacity of director of that company or body corporate shall be taxable under RCM in the hands of the company or body corporate under notification No. 13\/2017- CTR (Sl. No. 6) dated 28.06.2017.<\/p>\n Supply of food and beverages in cinema halls<\/strong>\n <\/p>\n It has been decided to clarify that supply of food and beverages in cinema halls is taxable as restaurant service as long as – (b) supplied independently of the cinema exhibition service. <\/p>\n Where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.<\/p>\n Second Report of Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming<\/u><\/strong><\/p>\n A Group of Ministers (GoM) was constituted to look into the issues related to taxation on casinos, horse racing and online gaming. The GoM submitted its first report in June, 2022 and it was placed before the GST Council in its 47th GST Council meeting <\/strong>wherein, it was decided that the GoM may relook into all the issues once again. <\/p>\n The GoM submitted its report and it was placed before the 50th GST Council meeting<\/strong>. The GoM, in its second report has recommended that since no consensus could be reached on whether the activities of online gaming, horse racing and casinos should be taxed at 28% on the full-face value of bets placed or on the GGR, the GST Council may decide. <\/strong>The GST Council has deliberated on the issues and has recommended the following:<\/p>\n <\/p>\n Measures for facilitation of trade<\/u><\/strong> <\/strong><\/p>\n Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023<\/strong>\n <\/p>\n The Council has recommended the Rules governing appointment and conditions of President and Members of the proposed GST Appellate Tribunal for enabling smooth constitution and functioning of GST Appellate Tribunal<\/strong>. \n<\/p>\n The Council also recommended that provisions of Finance Act, 2023 pertaining to GST Appellate Tribunal may be notified by the Centre with effect from 01.08.2023<\/strong>, so that the same can be brought into operation at the earliest. \n <\/p>\n Further the council has recommended the Chief Secretary of Maharashtra to be nominated as one of the members of the Search cum selection committee as per Section 110(4)(b)(iii) of CGST Act 2017. Regarding the number of State Benches, it was decided to start them in a phase wise manner.<\/p>\n Annual Returns for FY 2022-23<\/strong> \n <\/p>\n The Council has recommended that the relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 <\/strong>and FORM GSTR-9C <\/strong>be continued for FY 2022-23<\/strong>. Input Services Distributor (ISD) mechanism<\/strong><\/p>\n The Council has recommended to clarify through a circular <\/strong>that Input Services Distributor (ISD) mechanism is not mandatory <\/strong>for distribution of input tax credit of common input services procured from third parties <\/strong>to the distinct persons as per the present provisions of GST law, and also to clarify issues regarding taxability of internally generated services <\/strong>provided by one distinct person to another distinct person. \n <\/p>\n The Council has also recommended that amendment may be made in GST law to make ISD mechanism mandatory prospectively <\/strong>for distribution of input tax credit of such common input services procured from third parties.\n <\/p>\n GST liability as well as the liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period<\/strong><\/p>\n Circular to be issued to provide clarity on various issues <\/strong>pertaining to the GST liability as well as the liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period <\/strong>without any consideration from the customers, clarifying inter alia <\/em>that no GST is chargeable by the manufacturer on such replacement of parts and\/ or repair service. Circular to be issued to clarify various refund related issues:<\/strong><\/p>\n <\/p>\n Clarification regarding TCS liability<\/strong><\/p>\n Circular to be issued to provide clarification regarding TCS liability under Sec 52 <\/strong>of the CGST Act, 2017 in cases where multiple E-commerce Operators (ECOs<\/strong>) are involved in a single transaction of supply of goods or services or both.<\/p>\n T<\/strong>ax invoice in cases of supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient.<\/strong> <\/strong>\n <\/p>\n To ease compliance burden of the taxpayers, clause (f) of rule 46 <\/strong>of CGST Rules, 2017 to amended to provide for requirement of only name of the State of the recipient, <\/strong>and not the name and full address of the recipient, on the tax invoice in cases of supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient.<\/p>\n Issuance of the circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large:<\/strong><\/p>\n <\/p>\n Verification of Input Tax Credit Discrepancies<\/strong><\/p>\n As per the recommendations of the Council in its 48th meeting, Circular No.183\/15\/2022-GST dated 27th December, 2022 was issued to provide for the procedure for verification of input tax credit in cases involving difference in Input Tax Credit availed in FORM GSTR-3B <\/strong>vis a vis that available as per FORM GSTR-2A <\/strong>during FY 2017-18 and 2018-19<\/strong>. \n<\/p>\n To provide further relief to the taxpayers, the Council recommended for further issuance of a circular to provide for similar procedure for verification of input tax credit in cases involving difference in Input Tax Credit availed in FORM GSTR-3B <\/strong>vis a vis that available as per FORM GSTR-2A <\/strong>during the period 01.04.2019 to 31.12.2021<\/strong>.<\/p>\n Special Procedure for Manual Filing of Appeal for TRAN-1\/TRAN-2 Claims<\/strong><\/p>\n Special procedure <\/strong>to be provided under section 148 of CGST Act, 2017 to enable manual filing of appeal against the orders passed by proper officers in respect of TRAN-1\/ TRAN-2 claims of the registered persons, filed in pursuance of the directions of Hon’ble Supreme Court in case of the Union of India v\/s Filco Trade Centre Pvt. Ltd.<\/p>\n Manual Filing of Appeal under Specific Circumstances in CGST Rules<\/strong><\/p>\n Rule<\/strong> <\/strong>108(1)<\/strong> <\/strong>and rule<\/strong> <\/strong>109(1) <\/strong>of CGST Rules, 2017 to be amended to provide for manual filing of appeal under certain specified circumstances.\n<\/p>\n Extension of Amnesty Schemes for Non-Filers and Revocation of Cancellation of Registration<\/strong><\/p>\n Council recommended to extend the amnesty schemes <\/strong>notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4<\/strong>, FORM GSTR-9 <\/strong>& FORM GSTR-10 <\/strong>returns, revocation of cancellation of registration <\/strong>and deemed withdrawal of assessment orders <\/strong>issued under Section 62 of CGST Act, 2017, till 31.08.2023<\/strong>.\n <\/p>\n Extension of Filing Due Dates for Manipur in Response to Law and Order Situation<\/strong><\/p>\n In view of the prevailing law and order situation in the State of Manipur, the Council recommended to extend the due dates for filing of FORM GSTR-1<\/strong>, FORM GSTR- 3B <\/strong>and FORM GSTR-7 <\/strong>for the months of April, May and June, 2023 for the registered persons of State of Manipur till 31.07.2023<\/strong>.<\/p>\n Measures for streamlining compliances in GST<\/u><\/strong> <\/p>\n E-way Bill Requirement for Intra-State Movement of Gold and Precious Stones<\/strong><\/p>\n In accordance with the recommendations of Group of Ministers (GoM) on implementation of E-way bill requirement for movement of Gold\/ Precious stones <\/strong>under chapter 71, the Council has recommended to insert rule 138F <\/strong>in CGST Rules, 2017, as well as in SGST Rules, 2017 of the States, who want to mandate the requirement of generation of e-way bills for intra-State movement of gold and precious stones under Chapter 71 within their States.<\/p>\n Capacity-Based Taxation and Special Composition Scheme<\/strong><\/p>\n In accordance with the recommendations of the Group of Ministers (GoM) on Capacity based taxation and Special Composition Scheme <\/strong>approved by the Council in 49th meeting, the Council has made the following recommendations:<\/p>\n <\/p>\n Amendment in CGST Rules, 2017 to strengthen the registration process and to effectively deal with the menace of fake and fraudulent registrations in GST<\/strong> \n <\/p>\n The Council has recommended the following amendments in CGST Rules, 2017 to strengthen the registration process and to effectively deal with the menace of fake and fraudulent registrations in GST<\/strong>:<\/p>\n <\/p>\n Pilot Program for Risk-Based Biometric Aadhaar Authentication in Puducherry and Andhra Pradesh<\/strong><\/p>\n Pilot to be conducted in U.T. of Puducherry for risk-based biometric-based Aadhaar authentication <\/strong>of registration applicants. <\/p>\n The State of Andhra Pradesh also expressed its intent to join this pilot after the system’s readiness is tested in the state of Gujarat and U.T. of Puducherry.<\/p>\n Mechanism for for Recovery of Tax and Interest in terms of Rule 88C(3)<\/strong><\/p>\n On the recommendations of the GST Council in its 48th meeting held on 17.12.2022, rule 88C was inserted in the CGST Rules, 2017 with effect from 26.12.2022 for system based intimation to the registered person in cases where the output tax liability in terms of FORM GSTR-1 <\/strong>of a registered person for any particular month exceeds the output tax liability disclosed by the said person in the return in FORM GSTR-3B <\/strong>for the said month by a specified threshold. \n <\/p>\n The Council has now recommended insertion of Rule 142B <\/strong>in the CGST Rules, 2017 and insertion of a FORM GST DRC-01D <\/strong>to provide for manner of recovery of the tax and interest in respect of the amount intimated under rule 88C which has not been paid and for which no satisfactory explanation has been furnished by the registered person.<\/p>\n Mechanism for Addressing ITC Differences between FORM GSTR-2B and FORM GSTR-3B<\/strong><\/p>\n The Council has recommended a mechanism for system-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B <\/strong>vis a vis that made available in FORM GSTR-2B <\/strong>above a certain threshold, along with the procedure of auto-compliance on the part of the taxpayers, to explain the reasons for the said difference or take remedial action in respect of such difference. For this purpose, rule 88D <\/strong>and FORM DRC-01C <\/strong>to be inserted in CGST Rules, 2017, along with an amendment in rule 59(6) <\/strong>of CGST Rules, 2017. This will help in reducing ITC mismatches and misuse of ITC facility in GST.<\/strong>\n <\/p>\n Issuance of Notices for Failure to File Annual Returns in FORM GSTR-9 or FORM GSTR-9A<\/strong>\n<\/p>\n To improve discipline in filing of annual returns, FORM GSTR-3A <\/strong>to be amended to provide for issuance of notice to the registered taxpayers for their failure to furnish Annual Return in FORM GSTR-9 or FORM GSTR-9A <\/strong>by due date.<\/p>\n OIDAR service providers to provide the details of supplies made to registered persons in India in FORM GSTR-5A<\/strong><\/p>\n Rule<\/strong> <\/strong>64<\/strong> <\/strong>and ![](\"https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/07\/50-1.jpg\")
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\n (a) they are supplied by way of or as part of a service and<\/p>\n\n
\n Further, for easing compliance burden on smaller taxpayers, exemption from filing of annual return (in FORM GSTR-9\/9A<\/strong>) for taxpayers having aggregate annual turnover upto two crore rupees<\/strong>, to be continued for FY 2022-23 <\/strong>also.\n <\/p>\n
\n Also, no reversal of input tax credit is required to be made by the manufacturer.<\/p>\n\n
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