TaxTMI 
TaxTMI 
Minutes of the 36th GST Council Meeting held on 27 July, 2019
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....ended by the Fitment Committee for the consideration of the GST Council. (i) Changes in GST rate on electric vehicles and related supplies. 5. Any other agenda item with the permission of the Chairperson. 6. Date of the next meeting of the GST Council. Preliminary discussion 3. Shri Satpal Maharaj, Hon'ble Minister from Uttarakhand, Shri Niranjan Pujari, Hon'ble Minister from Odisha, Thiru D. Jayakumar, Hon'ble Minister from Tamil Nadu, Dr. Amit Mitra, Hon'ble Minister from West Bengal, Shri Mauvin Godinho, Hon'ble Minister from Goa, Shri T.S. Singh Deo, Hon'ble Minister from Chhattisgarh, Shri Manpreet Singh Badal, Hon'ble Minister from Punjab and Shri K.K. Sharma, Advisor to Governor, Jammu & Kashmir greeted the Chairperson and Shri Anurag Singh Thakur, Minister of State (Finance), Government of India. The Chairperson also reciprocated the same. Shri Sushil Kumar Modi, Hon'ble Deputy Chief Minister of Bihar also congratulated the Chairperson for presenting a good Budget and stated that due to an urgent meeting on floods in Bihar, he might be excused early. The Chairperson assured that she would try to conclude the meeting in time. After the pre....
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....t or Gross Gaming Revenue (GGR) was taxed, whereas as on date it was being taxed on face value". He had also stated in the mail that at page 30, for the last line of the paragraph 27.25 being read as "the only proposal was that this matter should be referred to the Fitment Committee or the Law Committee so that the methodology and the tax on the only bet amount could be decided"; might be read as "the only proposal was that this matter could be referred to the Fitment Committee or the Law Committee so that the methodology and the tax on net amount or Gross Gaining Revenue (GGR) could be decided." The Council agreed to the suggestion. 4.1. The Hon'ble Finance Minister from West Bengal stated that he was unable to attend the last meeting of the Council and hence apologised for the same. He congratulated the Chairperson since he had met her for the first time after she became Union Finance Minister, a very important position. He stated that as regards the Minutes of the last meetings. Shri H. K. Dwivedi ACS, Finance, Government of West Bengal had stated some contra views, which were recorded very accurately on both occasions. He thanked the Council Secretariat and the Secretary for....
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....ipal Commissioner (GST Policy Wing), CBIC, stated that these circulars and notifications were interalia related to extension of dates of various returns, procedure for export of jewellery, manner of utilization of Input Tax Credit, Place of Supply Rules etc. He further added that on 22^nd July 2019, after the agenda was circulated, another circular was issued which was 109 of 2019 on 22^nd July 2019 regarding issues related to Resident Welfare Association (RWA), might also be added for ratification by the Council. A presentation (attached as Annexure 3 to the Minutes of the meeting) on it was mailed to all the States. The Secretary proposed that the Council might grant deemed ratification to the Notifications, Circulars and Orders. The Council agreed to the proposal. 7. For Agenda item 2, the council approved the deemed ratification of the Notifications, Circulars and Orders issued after 12^th June 2019 and till 19^th July, 2019, under the GST laws by the Central Government, which are available on www.cbic.gov.in Act/Rules Type Notification/Circular/Order Nos CGST Act/CGST Rules Central Tax 25 to 34 of 2019 Central Tax (Rate) 11 of 2019 UTGST Act....
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.... not be stayed. However, a written communication might be sent to the Council's Secretariat on the issue which could he examined and if required, the circular would be suitably amended. At the moment, the Circular having already been issued, was placed before Council for information. The JS, TRU-Il also stated that if a formal letter could be sent by Odisha, they would examine and respond on the issue. Shri Ashok Meena, Finance Secretary, Odisha stated that he would send a note indicating the difference between the Circular and the Statute, which might be discussed, and final view be taken thereafter. 9. For Agenda item 3, the Council took note of the decision taken by the GIC between 11^th May, 2019 and 19^th July, 2019. Agenda Item 4: Issues recommended by the Fitment Committee for the consideration of the GST Council: Agenda Item 4 (i): Changes in GST rate on electric vehicles and related supplies 10. The Secretary introduced the agenda and stated that the agenda note was earlier placed before the 35 GST Council containing proposal to reduce GST rates on the supply of electric vehicle, electric vehicle chargers and exemption from GST rate on hiring of electric buses ....
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....h a sunset clause that the tax incentive by way of reduction of GST rate to 5% on electric vehicles might be given up to 31.03.2022. He also supported reduction of tax to 12% with regard to electric chargers from 18% and exemption from GST on hiring of electric buses by local authorities. He further stated that future incentive might be considered after taking into consideration the revenue implication and compensation issue. 10.3. Shri Manish Sisodia, Hon'ble Deputy Chief Minister of Delhi stated that all the three proposals were very progressive as well as much needed for Delhi in view of the pollution and supported all the three proposals. However, he suggested that electric chargers should be placed at the rate of 5% instead of 12% as it was an accessory of the electric vehicles. He further stated that although it was a progressive thought, hut the reduction of tax rate on electric vehicle, electric chargers etc. would have an implication on the existing automobile sector which at present was in crisis. Further, increase in sale of electric vehicles would lead to reduction of sales in traditional fuel-based vehicles and this would lead to decrease in VAT revenue from diesel,....
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....uty Chief Minister of Bihar had suggested that tax rate on electric vehicle chargers should also be 5%, he requested iS, TRU-1 to apprise the Council as to why the Fitment Committee had not recommended to reduce the rate of electric vehicle chargers also to 5% in lieu of 12%. JS, TRU-l stated that the Fitment Committee discussed it and proposed the rate of 12% on charger on two counts. One, electric vehicles as on date attracted GST at the rate of 12% while charger attracted GST at the rate of 18%. As such, charger was on a different footing than electric vehicle in as much as charger/charging station was not sold to consumers directly but were items of business to business sale. Taking these aspects into account, the Fitment Committee had recommended that chargers should be kept at 12%. 10.6. Shri Manu Srivastav, Principal Secretary, Finance, Madhya Pradesh stated that the State government had 6 electric vehicles, while the cost of electric-vehicle was Rs. 12 lakh, electric-charger was costing Rs. 1.5 lakh. Since chargers form a very small component of the electric-vehicles, there should not be any differential rates as it would lead to complication but would not have any major....
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....g both the aspects together in order to have a holistic decision i.e. whether to start levy of GST on diesel and petrol from 1 July 2022 or not or whether the Council would postpone the decision for another 5 years. Thus, it should not be misunderstood as a limitation being put to incentive. Further, the Council should go ahead instead of thinking of foregoing revenue of Rs. 60 crore as even if sales of electric vehicles increased five times in three years, it would only forgo annual tax of Rs. 300 crore from overall realization of GST revenue of Rs. one lakh crore a month. Hence, instead of the amount, the encouragement to the industry should be kept in mind. 10.9. The Hon'ble Deputy' Chief Minister of Delhi clarified that he had stated that although it was a progressive step to increase the market of electric vehicles, but the Council should keep in mind the full revenue impact. The State of Delhi collected Rs. 1200 crore of revenue from the automobiles and Rs. 6000 crore VAT on sale of petrol and diesel. He wanted to know that once people moved to substantial quantity of sale of electric vehicles, then how this amount would be compensated and this loss of huge amount of VAT s....
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....tion had fallen by 15%, Tata's by 8%, Maruti's by 27% etc. Thus, the Council had also to see the internal combustion engine-based automobile industry which employed approximately 3.7 crore people with an investment of about Rs. 1.7 lakh crore. The Council, while deciding should make sure that the transition to electric vehicles happened in a steady, systematic and sustainable manner. The Hon'ble members of the Council might be aware that in USA only 21% sale of vehicles were electric today while in UK it was also close to that number. Thus, most of the developed countries were still not fully geared to shift to electric vehicles in terms of sale. India had 25-billion-dollars automobile industry, i.e. one of the largest; Hence, the Council had to address this issue holistically. He stated that the agenda had been brought before the Council at a short notice, which should have been discussed in a full-fledged meeting. Further, the Council should not neglect the existing industry which was also trying to become less polluting with BS V & BS VI compliant models which lie had detailed in the letter addressed to the Chairperson. 10.14. The Chairperson mentioned that the Government mov....
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....by this, there should be boost in investment; ii) encourage the BS VI compliant vehicles by reducing the GST rate; iii) encourage the hybrid vehicles with the intention to provide a package with an intention to reduce pollution. He thereafter stated that as far as the electric chargers were concerned, Fitment Committee had examined ¡t but did not propose steeper cut perhaps taking into account the ITC factor. However, he would be happy to go with the decision of the Council after due deliberation on ITC on it. 10.16. The Chairperson responded to the Hon'ble Minister from West Bengal that his point was well taken that the traditional industry contributed to (lie investment and National GDP significantly and should not be ignored. However, a fundamental question was, that would it not be sending a contradictory message if support was given simultaneously to the fossil fuel- based BS VI vehicles also, along with encouragement to futuristic non-polluting renewable energy-based vehicle. She further stated that if the Council agreed, she might refer the points raised by the Hon'ble Minister from West Bengal to the Fitment Committee to consider the proposal. ....
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....suming States. He therefore, suggested that since there would be distortions, he requested the Chairperson to confine the concession to the electric vehicles till the year 2022 or to extend the compensation for another few years beyond 2022. 10.19. He further stated that as far as protection of environment was concerned, there would be similar demand from the competing industries. In addition, he drew attention of the Council to the fact that 12% GST rate was charged on daily basic needs such as pickle, drinking water, jam etc. and it was not equitable to recommend a concessional rate of GST at 5% to electric vehicles where the electric cars would cost 20 lakh each. Further, as far as chargers were concerned, when their parts continued to be taxed at 18%, there would be no point to tax chargers at 5%. Hence Punjab was not in favour of the proposal as the means were as important as the end and the Council was expected to be highly responsible and transparent of any decision ¡t took. He also asked about the fate of the existing automobile industry and the investment that had been made in these industries. He requested to the Chairperson that the Council should look at propos....
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.... Hon'ble Minister from West Bengal did not seem to be true. Further, in response to the remarks of Hon'ble Chief Minister of Delhi, about future revenue losses on account of petrol and diesel and automobile industry, he suggested that first of all, it was far ahead in future and that Electricity Duty' might be imposed by the States to compensate the revenue losses in future. 10.22. Shri Somesh Kurnar, Principal Secretary, Telangana stated that the Hon'ble Finance Minister of Telangana could not attend the meeting hut the Government of Telangana favoured all the three proposals. However, lie highlighted the concern before the Council that it might lead to inverted tax structure and care should be taken to avoid giving any refund on account of it. He also felt that incentive might be limited to a period of three years, after which matter could be reviewed, as the limited period incentive would create a feeling of urgency. 10.23. The Advisor from Jammu & Kashmir supported the proposal of reducing GST rates of all three items as apart from Delhi, Mumbai, Kolkata and Chennai even the smaller cities like Srinagar, .Jammu and Chandigarh were suffering from pollution problem. Thus po....
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....ised apprehensions about the revenue of the State in future due to the Council's decision of lowering GST on many items in the past. Further, approximately 50% of the State's revenue was contributed by GST and continuous reduction of taxes due to exempting one or the other items affected it badly leading to alarming situation after 2022. Therefore, this should be discussed in the Council in the forthcoming meeting including the extension of compensation for few more years, as was highlighted by the States of Punjab arid Delhi. He also stated that he had written a letter regarding coaching centres to the Hon'ble Chairperson and requested that the rate of 18% on coaching services being very high should be brought down or exempted. 10.26. The Hon'ble Chairperson stated that his above statement seemed contradictory to his worries regarding revenue reduction. He was asking for reduction in tax rates on coaching centres which would have negative impact on revenues of the State on one hand while he was worried about compensation for revenue losses on the other hand due to lowering of taxes on many items. The Hon'ble Minister from Rajasthan responded that these coaching centres produced....
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....d out during the discussion that the production of electricity in the country was gradually shifting from fossil fuel or coal-based plant to renewable energy-based plants. The Hon'ble Chairperson also stated that while the concerns of West Bengal and that of Punjab were understood, the Council was looking at promoting electric vehicles, which would be less polluting, than continuing without a thought for the future. She further stated that the concern raised about Bharat Stage VI vehicles, where lot of industries had invested, were well taken and she appealed to the Hon'ble Ministers from Punjab and West Bengal to understand that Council was not forgetful or unmindful of those who were still producing Bharat Stage VI vehicles and acknowledged their contribution such as investment made by them, jobs provided by them and their contribution to the GDP. However, as a futuristic step, the Council would like to promote electric vehicles and electric chargers by way of bringing tax on it down to 5%. The Council members agreed to the proposition. 10.30. The Hon'ble Minister from West Bengal stated that he would request the Council Secretariat to record his views that, he had proposed fo....
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....ST rate on charger or charging stations for electric vehicles be reduced from 18% to 5%. iii. Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST. iv. These changes shall become effective from 1^st August, 2019. Agenda Item 5: An' other agenda item with the permission of the Chairperson. Agenda Item 5(1): Extension of the last date for filling of FORM GST CMP-02 and FORM GST CMP-08 12. The Secretary introduced the agenda item and requested Principal Commissioner, (GST Policy Wing), CBIC to appraise the Council about the same. The Principal Commissioner, (GST Policy Wing), CRIC mentioned that the additional agenda note for extending the dates for filing FORM GST CMP-02 and FORM GST CMP-08 was circulated to the States. In view of details stated hi the agenda note and in order to provide sufficient time to the taxpayers, it was proposed that the last date for filing of FORM GST CMP-02 might be extended to 30^th September 2019, and that for FORM GST CMP-08 to 31^st August, 2019. He also stated that as the forms were not available on the common portal, the due date of filing FORM GST CMP-02 would....
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....y Chief Minister Minister for Commercial Taxes Deputy Chief Minister Minister for Panchayat Advisor to Governor (I/c Finance) Minister - Department of Urban Development, Housing and Transport 10 Maharashtra 11 Odisha Shri C.P. Singh Shri Sudhir Mungantiwar Shri Niranjan Pujari Finance Minister Finance Minister 12 Punjab Shri Manpreet Singh Badal Finance Minister 13 Rajasthan Shri Shanti Kumar Dhariwal 14 Tamil Nadu 15 Tripura 16 Uttarakhand 17 West Bengal Shri D. Jayakumar Shri Jishnu Dev Varma Shri Satpal Maharaj Dr. Amit Mitra Minister for Local Self Government, Urban Development and Housing, Law and Legal affairs, Parliamentary affairs Minister for Fisheries and Personnel & Administrative Reforms Deputy Chief Minister Minister for Irrigation, Flood Control, Rain Water Harvesting and Water Management Finance Minister Page 15 of 26 CHAIRMAN'S INITIALS MINUTE BOOK Annexure II List of Officials who attended the 36th GST Council Meeting on 27th July 2019 Charge Chairman, CBIC SI State/Centre Name of the Officer No 1 ....
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....il Shri Rakesh Agarwal Shri Mahesh Singarapu Page 16 of 26 Dy. Commissioner Dy. Commissioner Under Secretary MINUTE BOOK Estd. 1949 39 GST Council Shri Krishna Koundinya Under Secretary 40 GST Council Shri Sarib Sahran Superintendent JAYNA 41 GST Council Shri Adesh Nayak Superintendent 42 GST Council Shri Krishan Kumar Verma Superintendent 43 GST Council 44 GST Council 45 GSTN Superintendent Superintendent JAYNA BOOK DEPOT 46 GSTN 47 GSTN 48 Govt. of India 49 Govt. of India 50 Govt. of India 51 Andhra Pradesh 52 Andhra Pradesh 53 Andhra Pradesh 54 Andhra Pradesh Arunachal 55 55 56 Pradesh Ms Chanchal Soni Shri Maneesh Nemiwal Shri Prakash Kumar Ms Kajal Singh Shri Sarthak Saxena Shri Sanjay Mahendru Shri Anuj Gogia Shri Amit Gupta Shri Peeyush Kumar Shri T Ramesh Babu Shri D. Venkateswar Rao Shri JVM Sarma Shri Nakut Padung Ms Tadu Lily Pradesh Arunachal 56 Shri Debi Ete Pradesh Arunachal 57 58 Assam 59 Assam 60 Assam 61 Assam 62 Bihar 63 Bihar 64 Bihar 65 Bihar 6....
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.... Meghalaya 99 Meghalaya 100 Meghalaya 101 Meghalaya 102 Odisha 103 Odisha 104 Odisha 105 Odisha 106 Puducherry 107 Puducherry 108 Punjab 109 Rajasthan 110 Rajasthan 111 Rajasthan 112 Rajasthan Shri Rajiv Jalota Shri Dhananjay Akhade Ms. Jaspreet Kaur Shri Y Indrakumar Singh Shri L Khongsit Shri Kitbokson War Shri. B. Wahlang Ms S M Sutnga Shri NL Sohilya Shri J Kharwanlang Shri Ashok KK Meena Shri Bishnupada Sethi Shri Ananda Satpathy Shri Nidhi Kumar Ruatray Shri L Kumar Shri K Sridhar Shri Ravneet S Khurana Dr. Prithvi Raj Dr. Preetam B Yashwant Shri Ketan Sharma Ms Meenal Bhonsale Page 18 of 26 Additional Chief Secretary, E & T Dept Commissioner, E & T Dept Addl. Commissioner, E & T Dept Pr. Secretary, State Taxes and Excise Commissioner of State Tax and Excise Joint Commissioner., State Tax & Excise Commissioner, State Tax OSD to Advisor, J&K Secretary & Commissioner, State Tax Special Secretary State Tax officer Commissioner, State Tax Commissioner, State Tax PS, Commercial Taxes, Registration and Excise Join....
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....INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Annexure III 36th Meeting of GST Council Deemed ratification & GIC decisions 25.07.2019 Agenda • • NATION TAX MARKET Agenda No. 2: Deemed Ratification of Notification / Circulars / Orders issued post 35th Meeting of GST Council Agenda No. 3: Decisions taken by the GIC post 35th Meeting of GST Council Page 20 of 26 JAYNA BOOK DEPOT Extd. 1949 JAYNA MINUTE BOOK Agenda No. 2 Deemed Ratification NATION TAX MARKET • Ratification of following notifications, Circulars & Orders issued post 35th GST Council meeting (held on 21st June, 2019): Act/Rules CGST Act/CGST Rules UTGST Act IGST Act Compensation Cess Circulars ROD Orders Type Central Tax Central Tax (Rate) Union territory Tax (Rate) Integrated Tax (Rate) Compensation Cess (Rate) Under the CGST Act Under the CGST Act Notification/Circular/Order Nos. 25 to 34 of 2019 11 of 2019 11 of 2019 10 to 11 of 2019 1 of 2019 102 to 109 of 2019 6 of 2019 Agenda No. 3 GIC decisions post 35th GST Council Meeting (1/11) Dec....
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....th GIC meeting (11.06.19) INATION TAX MARKET ⚫ Geo-tagging of registered persons under GST - To make relevant fields compulsory in FORM GST REG-01 GSTN has been requested, vide mail dated 08.07.19, to take necessary action • Clarification on processing of refund applications in FORM GST RFD-01A submitted by taxpayers wrongly mapped on the common portal ✔Circular No. 104/23/2019-GST dated 28.06.19 issued • Clarification on various doubts related to treatment of secondary or post-sales discounts under GST Circular No. 105/24/2019-GST dated 28.06.19 issued Page 23 of 26 7 M CHAIRMAN'S INITIALS The CHAIRMAN'S INITIALS MINUTE BOOK Agenda No. 3 GIC decisions post 35th GST Council Meeting (6/11) Decisions of 29th GIC meeting (11.06.19) NATION TAX MARKET Refund of taxes paid on inward supply of indigenous goods by Duty Free Shop (DFS) and Duty Paid Shop (DPS) established at departure area of international airport beyond immigration counters making supply of such goods to outgoing international tourist against foreign exchange Circular No. 106/25/2019-GST dated ....