{"id":9432,"date":"2023-10-07T12:51:27","date_gmt":"2023-10-07T11:51:27","guid":{"rendered":"https:\/\/www.klickongstworld.com\/blog\/?p=9432"},"modified":"2024-06-23T05:14:19","modified_gmt":"2024-06-23T04:14:19","slug":"recommendations-of-52nd-gst-council-meeting","status":"publish","type":"post","link":"https:\/\/www.klickongstworld.com\/blog\/recommendations-of-52nd-gst-council-meeting\/","title":{"rendered":"Recommendations of 52nd GST Council Meeting"},"content":{"rendered":"

GST Council recommends amendments in conditions of appointment of President and Member of the proposed GST Appellate Tribunals regarding eligibility and age<\/strong><\/h3>\n

GST Council recommends nil rate for food preparation of millet flour in powder form and containing at least 70% millets by weight when sold in loose form, and 5% if sold in pre-packaged and labelled form
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GST Council recommends to keep Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption outside GST<\/strong> <\/h3>\n

GST Council recommends reducing GST on molasses from 28% to 5% in relief to cane farmers for faster clearance of dues and to reduce cost of manufacturing cattle feed<\/strong> <\/h3>\n

To promote tourism, GST Council recommends conditional and limited duration IGST exemption to foreign flag foreign going vessel when it converts to coastal run<\/strong> <\/h3>\n

The 52nd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya holding finance portfolio, besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States\/ UTs.
\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.\n<\/p>\n

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A. Recommendations relating to GST rates on goods and services<\/strong>\n <\/p>\n

I. Changes in GST rates of goods<\/strong><\/p>\n

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  • GST rates on “Food preparation of millet flour in powder form, containing at least 70% millets by weight”, falling under HS 1901, with effect from date of notification, have been prescribed as:<\/li>\n
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    • 0% if sold in other than pre-packaged and labelled form<\/li>\n
    • 5% if sold in pre-packaged and labelled form<\/li>\n<\/ul>\n
    • To clarify that imitation zari thread or yarn made out of metallised polyester film \/plastic film, falling under HS 5605, are covered by the entry for imitation zari thread or yarn attracting 5% GST rate. However, no refund will be allowed on polyester film (metallised) \/plastic film on account of inversion.<\/li>\n
    • Foreign going vessels are liable to pay 5% IGST on the value of the vessel if it converts to coastal run. GST Council recommends conditional IGST exemption to foreign flag foreign going vessel when it converts to coastal run subject to its reconversion to foreign going vessel in six months.<\/li>\n<\/ul>\n<\/div>\n

      II. Other changes relating to Goods<\/strong> <\/p>\n

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      • GST Council recommended to keep Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption outside GST. Law Committee will examine suitable amendment in law to exclude ENA for use in manufacture of alcoholic liquors for human consumption from ambit of GST.<\/li>\n
      • To reduce GST on molasses from 28% to 5%. This step will increase liquidity with mills and enable faster clearance of  cane dues to sugarcane farmers. This will also lead to reduction in cost for manufacture of cattle feed as molasses is also an ingredient in its manufacture.<\/li>\n
      • A separate tariff HS code has been created at 8 digit level in the Customs Tariff Act to cover rectified spirit for industrial use. The GST rate notification will be amended to create an entry for ENA for industrial use attracting 18% GST.<\/li>\n<\/ul>\n<\/div>\n

        III. Changes in GST rates of services<\/strong> <\/p>\n

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        • Entries at Sl. No. 3 and 3A of notification No. 12\/2017-CTR dated 28.06.2017 exempts pure and composite services provided to Central\/State\/UT governments and local authorities in relation to any function entrusted to Panchayat\/ Municipality under Article 243G and 243W of the Constitution of India. The GST Council has recommended to retain the existing exemption entries with no change.<\/li>\n
        • Further, the GST Council has also recommended to exempt services of water supply, public health, sanitation conservancy, solid waste management and slum improvement and upgradation supplied to Governmental Authorities.<\/li>\n<\/ul>\n<\/div>\n

          IV. Other changes relating to Services<\/strong> <\/p>\n

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          • To clarify that job work services for processing of barley into malt attracts GST @ 5% as applicable to "job work in relation to food and food products” and not 18%. <\/li>\n
          • With effect from 1st January 2022, liability to pay GST on bus transportation services supplied through Electronic Commerce Operators (ECOs) has been placed on the ECO under section 9(5) of CGST Act, 2017. This trade facilitation measure was taken on the representation of industry association that most of the bus operators supplying service through ECO owned one or two buses and were not in a position to take registration and meet GST compliances.  To arrive at a balance between the need of small operators for ease of doing business and the need of large organized players to take ITC, GST Council has recommended that bus operators organised as companies may be excluded from the purview of section 9(5) of CGST Act, 2017. This would enable them to pay GST on their supplies using their ITC. <\/li>\n
          • To clarify that District Mineral Foundations Trusts (DMFT) set up by the State Governments across the country in mineral mining areas are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority. <\/li>\n
          • Supply of all goods and services by Indian Railways shall be taxed under Forward Charge Mechanism to enable them to avail ITC. This will reduce the cost for Indian Railways. <\/li>\n<\/ul>\n<\/div>\n

            B. Measures for facilitation of trade:<\/strong> <\/p>\n

            i) Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time period: <\/strong>
            \n The Council <\/strong>has <\/strong>recommended providing an amnesty scheme through a special procedure under section 148 of CGST Act, 2017 for taxable persons, who could not file an appeal under section 107 of the said Act, against the demand order under section 73 or 74 of CGST Act, 2017  passed on or before the 31st day of March, 2023, or whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in sub-section (1) of section 107. In all such cases, filing of appeal by the taxpayers will be allowed against such orders upto 31st January 2024<\/strong>, subject to the condition of payment of an amount of pre-deposit of 12.5% of the tax under dispute, out of which at least 20% (i.e. 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger. This will facilitate a large number of taxpayers, who could not file appeal in the past within the specified time period<\/strong>.<\/p>\n

            ii) Clarifications regarding taxability of personal guarantee offered by directors to the bank against the credit limits\/loans being sanctioned to the company and regarding taxability of corporate guarantee provided for related persons including corporate guarantee provided by holding company to its subsidiary company: <\/strong>The Council has inter alia<\/em> recommended to:<\/p>\n

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