49th Meeting of the GST Council 18th February, 2023

Mar 2, 2023

SUBJECT

49th Meeting of the GST Council 18th February, 2023

Contributed By

CA Vaibhav Jain
Partner
vaibhavjain@mehragoelco.com

Aditi Khurana
Article Assistant
aditikhurana@mehragoelco.com

GST Compensation Cess : –

Final settlement of provisionally admissible compensation as envisaged in the GST (Compensation to States) Act’2017 upto June’2022 by the Central Government to clear the entire pending balance of GST compensation.

GST Appellate Tribunal : –

Taking a step forward the Council adopted the report of Group of Ministers for formation of Appellate Tribunal with certain modifications subject to final authorisation by the Chairperson.

Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST:-

In order to plug the leakages and improve the revenue collection from the commodities like pan masala, gutkha, chewing tobacco, the Council approved the recommendations of the GoM as follows –

the capacity-based levy not to be prescribed
compliance and tracking measures to be taken to plug leakages/evasions
exports of such commodities to be allowed only against LUT with consequential refund of accumulated ITC

compensation cess levied on such commodities to be changed from ad valorem to specific tax-based levy to boost the first stage collection of the revenue

Recommendations relating to GST rates on Goods and Services:-

Reduction in GST rate on Rab from 18% to 5% (if sold pre-packaged and labelled) and Nil (if sold otherwise).
Reduction in GST rate on Pencil Sharpener from 18% to 12%.
To regularize the GST rate on ‘rab’ for the past period on “as is basis” in case of doubts regarding its classification and applicable GST rates.
No separate IGST to be levied on devices like tag- tracking device or data logger already affixed on a container specified under Notification No. 104/94-Customs which attract NIL IGST.
Extension of exemption available to educational institutions and Central and State educational boards for conduct of entrance examination to any authority, board or a body set up by the Central Government or State Government including National Testing Agency for admission to educational institutions.
Amendment of entry at Sl. No. 41A of Notification No. 1/2017- Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
Services provided by the Courts and Tribunals to be charged under RCM in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.

Trade Facilitation Measures

Particulars	Amendments	Amnesty Scheme
Extension of time limit for application for revocation of cancellation of registration Section 30 of CGST Act,2017 Rule 23 of CGST Rules,2017	Increase in time limit for making an application for revocation of cancellation of registration from 30 days to 90 days. The above-mentioned time period to be extended by the Commissioner or an officer authorised by him for a further period not exceeding 180 days.	Relief to be provided in past cases where registration has been cancelled on account of non-filing of the returns but application could not be filed within time limit by allowing one-time filing of application for revocation upto a certain specific date.
Extension of time limit for deemed withdrawal of best judgement assessment order Section 62 of CGST Act,2017	Increase in time limit for filing of pending returns for enabling deemed withdrawal of best judgment assessment order, from the present 30 days to 60 days, extendable by another 60 days, subject to certain conditions.	Conditional Deemed withdrawal of Best Judgement Assessment Order under Section 62 in past cases if GST and Interest paid and returns filed with late filing fees upto specified date.
Rationalisation of Late fee for Annual Return	Reduced late fee for delayed filing of annual return in FORM GSTR -9 for FY 2022-23 onwards as mentioned below: Aggregate turnover of upto Rs. 5 CR in the FY – Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST). Aggregate turnover of more than Rs. 5 CR and upto Rs. 20 CR in the FY – Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).	NA
Conditional waiver/ reduction of late fee	NA	Relief to a large number of taxpayers in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.
Rationalization of provision of place of supply of services of transportation of goods Section 13(9) of IGST Act,2017 deleted.	Place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.	NA