GST rate rationalization updates rates, exemptions, compliance and procedural reforms including GSTN IT measures and refund facilitation.
Council recommended GST rate rationalization and withdrawal or narrowing of exemptions for specified goods and services, issued clarifications on concessional treatments (including electric vehicles and certain bricks), and regularized past GST treatment for ice-cream parlours. Procedural reforms include modified refund calculation for unutilized ITC in inverted duty cases, transmission of suspended IGST refund claims to jurisdictional officers, re credit mechanisms for erroneous refunds, selective registration relaxations for supplies through e-commerce operators, and adoption of AI/ML mechanisms by GSTN for registration verification and risk based monitoring.

GST on gambling services deferred pending valuation review and renewed stakeholder consultation before council reconvenes to decide.
The Council deferred final determination on applying Goods and Services Tax to casinos, online gaming, horse racing and lottery pending further stakeholder consultation on the appropriate valuation mechanism. A Group of Ministers was instructed to reassess submissions on whether online gaming should be taxed on the full value of consideration, including entry fees, and whether GST should be levied on the full value of pooled bets in totalisators for race courses, with a report to the Council prior to reconvening.

Input tax credit verification: taxpayers must reconcile GSTR 2B and GSTR 3B and claim ITC only as per law.
Duplicate entries in the auto drafted GSTR 2B feed have been corrected; taxpayers must ensure that the Input Tax Credit (ITC) they claim in GSTR 3B accords with statutory entitlement. Taxpayers should reconcile ITC using the downloaded auto drafted ITC statement (GSTR 2B), the system generated GSTR 3B PDF, or the ITC shown on mouse hover of Table 4, and resolve any differences with the prefilled on screen GSTR 3B before filing.

New tax rate reporting in GSTR 1: upload items under the new rate; temporarily file HSN entries under the existing rate.
New tax rate has been added to the item details sections of all GSTR 1 tables and supplies subject to the new rate must be uploaded against that tax rate in item details; HSN table 12 is not yet updated, so HSN details for such supplies should be temporarily reported under the nearest existing tax rate with values and tax amounts adjusted to reflect actual supplies.

GST revenue growth signals stronger receipts, prompting larger IGST settlements and a major compensation release to states.
The release reports robust year on year growth in GST revenue for May 2022, with increases in both import and domestic receipts; it details disaggregation across CGST, SGST, IGST and cess, administrative IGST settlements to central and state accounts, and a significant release of GST compensation to states, accompanied by state wise growth data and e way bill trends indicating broader recovery in taxable economic activity.