TaxTMI 
TaxTMI 
TaxTMI 
Minutes of the 49th Meeting of GST Council held on 18th February, 2023
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....T Act, 2017 ii Proposal to extend time period mentioned in Section 62(2) of the CGST Act, 2017 iii. Change in Place of Supply of transportation of goods under Section 13(9) of the IGST Act, 2017 iv. Rationalisation of late fee for FORM GSTR-9 and amnesty for non-filers of FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 v. Amendment in CGST Rules and Notification for biometric based Aadhaar authentication of registration applicants vi. Extension of time limit for application for revocation of cancellation of registration vii. Extension of time limit under sub-section (10) of section 73 of the CGST Act for FY 2017-18, 2018-19 and 2019-20. 5. Recommendations of the Fitment Committee for consideration of the GST Council a) Recommendations made by the Fitment Committee for making changes in GST rates or for issuing clarifications in relation to goods - Annexure-I b) Issues where no change has been proposed by the Fitment Committee in relation to goods - Annexure-II c) Issues deferred by the Fitment Committee for further examination in relation to goods - Annexure-III d) Recommendations made by the Fitm....
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....e Hon'ble Members of the Council were aware that in its 47th meeting at Chandigarh, the Council had formed a Group of Ministers (GoM) on Goods and Services Tax Appellate Tribunal with Sh. Dushyant Chautala, Hon'ble Deputy Chief Minister of Haryana as the Convener and Hon'ble Ministers from the States of Andhra Pradesh, Goa, Rajasthan, Uttar Pradesh and Odisha as Members. The GoM had submitted their recommendations in the form of a report which was being placed as an agenda before the Council. He thanked all the Hon'ble Members of this GoM for their valuable recommendations. 1.6 Further, he stated that the GST Council had formed another GoM on Capacity Based Taxation and Special Composition Scheme in Certain Sectors on GST with Sh. Niranjan Pujari, Minister of Finance, Odisha as the Convener and Hon'ble Ministers from Delhi, Haryana, Kerala, Madhya Pradesh, Uttar Pradesh and Uttarakhand as Members. The GoM had submitted its report which was being placed before the Council for deliberations. He thanked all the Hon'ble Members of the GoM for their valuable recommendations. 1.7 He further stated that a GoM on Casinos, Race Courses and Online Gaming was formed to examine the is....
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.... released more compensation than the cess received. She stated that the Centre is proposing to pay the compensation dues in advance without waiting for the collection of the cess. She requested all the States to send the pending AG's certificates to enable the Centre to disburse the compensation amount timely. 1.11 The Secretary stated that there were fifteen agenda items in this meeting and the major set of agenda was circulated well in advance as promised in the last GST Council meeting. Agenda Item 1: Confirmation of the Minutes of the 48th Meeting of the GST Council 2.1 The first agenda item pertained to confirmation of the minutes of the 48th Meeting of the GST Council held on 17th December, 2022 through Video Conferencing. The Secretary stated that few States had suggested editorial changes which had been carried out and the revised minutes had been incorporated in the agenda and circulated to all the Hon'ble Members. Further Punjab had suggested certain minor changes in para 4.32 in the Officers' Meeting on 17th February 2023 which had been circulated to the Hon'ble Members in this meeting. The minutes of the 48th meeting of the GST Council after incorporating t....
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....d suggested that there should be State Tribunals but the majority of the Members of GoM agreed with the proposal that there should be one National Tribunal with Benches at State level. In this regard, he also informed the Council that the GoM had also considered the issue of various State Advance Ruling Authorities giving varied decisions on the same issue. To elaborate the point, the Hon'ble Convener cited the example of issue involving whether input tax credit (ITC) needs to be allowed on a demo car used by car dealers and in the States of Haryana and Madhya Pradesh, the respective Advance Ruling Authorities had passed orders that input tax paid on a demo car is not an eligible credit but in the State of Kerala and Maharashtra, the AAR had passed an order that ITC can be allowed for demo car. This demonstrates that there could be conflicting views on same issue across States as no single judgement prevailed over the whole country. To address this issue, the GoM had recommended that National Tribunal should be created with Benches at States so that there will be persuasive value of orders/judgements passed by respective Benches in other States. He submitted that this would be keep....
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....h respect to qualification of Judicial Member, the GoM recommended that he should be a Judge of the High Court (retd.) or District Judge or Additional District Judge with at least 10 years' experience. With respect to qualification of Technical Member (Centre), the GoM recommended that he should be a member of the Group A Service with 25 years of service (IRS -C&IT) or All India Services (AIS) with at least 3-year experience in GST or existing law and 25 years of service. With respect to qualification of Technical Member (State), the GoM recommended that he should have minimum 25 years' service and should be officer of State Government or AIS with a rank higher than the First Appellate Authority of the State. To give an example, the Hon'ble Convener stated that in the State of Haryana it would be an officer at least of the rank of Joint Excise & Tax Commissioner or Additional Excise & Tax Commissioner. Further, he submitted that in many States the equivalent of this is a Class B officer and in such cases the Council has the power to consider the request of the State and amend the requirement from time to time. Also, the requirement of 25 years of Government service in Group A may b....
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....he power respectively to make laws on subjects mentioned therein. Further, he stated that Article 246 A specifically provides the legislature of every State with power to make laws with respect to Goods and Services tax imposed by Union or State subject to Article 246 (2). He also drew attention of the Council to the overriding power given in Article 323 B clause (4) which provides that the of this Article provisions shall have effect notwithstanding anything in any other provision of this Constitution or any other law for the time being in force. He stated that the Constitution has accorded power to States to constitute Tribunals and further, he clarified that the issue raised in Revenue Bar Association case pertained to number of Judicial Members and the Court had ruled that the number of Judicial Members should not be less than the Technical Members and that this case was not a precedent for the point that the States do not have the power to constitute a Tribunal. The Hon'ble Member reiterated that States should have the power to constitute Tribunals and also that States should have a say over the appointment of Technical Members. 3.14 The Hon'ble Member from Rajasthan stated t....
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....i.e. if one Bench comprised Technical Member (Centre), then the next Bench could comprise Technical Member (State) and in case of four-member Benches, one Technical Member should be from Centre and another Technical Member should be from State. He further agreed with the proposal that Technical Member should not be below the rank of Joint Commissioner as it would ensure that people with reasonable experience in taxation to apply for the post. Further, the power proposed to be given to States to notify rank higher than the First Appellate Authority would be redundant where the First Appellate Authority is of the rank of Joint Commissioner but where Additional Commissioner rank officer is not available. Therefore, it was suggested that the proposed formulation may be amended so that Joint Commissioners become eligible for this post of Technical Member as a bigger pool of officers would be available. Further, the Hon'ble Member stated that they supported the proposal for National Tribunal with Benches at State level. 3.16 The Secretary clarified that the GoM had not made any proposal with respect to the number of Benches to be included in the Act and that the number of Benches could ....
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....ppoint the Technical Member (State) and preferably also the other Members to the Benches. In addition, it was mentioned that option should be given for keeping Technical Member (Centre) along with Technical Member (State) in these Benches so that there would be assured representation for the State and there could be two Judicial Members Also, it was stated that the Council could decide on the monetary limit for adjudication of cases at the level of State Benches as well as that of the National Tribunal. Further, he also stated that the Chief Justice of the High Court of concerned State should be the Chairman of the ScSC for selection of Technical Member (State). 3.20 The Hon'ble Member from Punjab supported the view taken by Hon'ble Members from Uttar Pradesh, Bihar, West Bengal and Rajasthan and stated that the States should have independent authority while constituting their own State Tribunal and in appointment of Members thereof. He further elaborated that every State has its own specific State based industry, trade practices that are particular to that State and therefore, persons from that State would be well versed with such State specific trade nuances. He also empha....
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.... GST Council should exercise its authority under the Constitution which was the prerogative of elected representatives. He elaborated that if the Council were to create a particular scheme for the Tribunals then the same can be taken up before the judiciary for deciding whether the scheme is valid or not under the Constitution. He opined that the directive of the Court that the Tribunals that are to be prospectively set up should follow a set principle, appears to be completely violative of the prerogative of the elected representatives. He pointed out that there are existing VAT Tribunals with one Judicial and two Technical Members which have not been invalidated by the Courts. He mentioned that if the Council proceeded with the view of the High Court, there would be a lot of complexity about the eligibility of the Members both Technical and Judicial. He further stated that in case of National Tribunal having Benches across the States, the administrative burden on a single body would be significantly higher. He stated that the Council should go with ratio of Judicial and Technical Members just like the existing VAT Tribunals and it should not give up the idea of State Tribunals. H....
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....fact that tax was collected at State level on consumption basis and the biggest evaluation method for consumption is the population and not the number of taxpayers, therefore, the GoM had recommended that the number of State Benches would be decided according to the population of the State. Regarding the selection of Technical Member (State), it was accepted that in case of Technical Member (State), the Chief Secretary of the State would be a Member of the ScSC. He further stated that there was a conflict regarding whether there should be a State Tribunal or a National level Tribunal having Benches in every State. He clarified that if an appeal is decided at the Joint Commissioner level, then as per the recommendations of GoM, the appeal would go to the National Bench or Bench at State level and then it would go to the High Court and then to the Supreme Court for final judgement; that if a State Tribunal was created then there would be a five tier system and therefore the GoM had collectively recommended the creation of National Tribunal and Benches in order to have faster delivery of judgments. He further stated that on the eligibility criteria of having experience of 25 years for....
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....y not be revisited. Further, the major issue was regarding who makes the recommendations for the Technical Member (State). Regarding the number of Benches, he stated that the same can be varied by the Council as per the requirement of the State. Regarding the request for reduction of 3 years tenure for AIS officers for the eligibility criteria, he stated that it was a fair tenure stipulation and that without that much tenure the officer would not have sufficient experience to adjudicate on tax disputes. The Secretary clarified that Section 109 (5) of the CGST Act, as recommended by the GoM, states that in addition to the Principal Bench, Government shall, by notification, constitute such number of Benches at such locations as may be recommended by the Council based on the request of the State Government. He clarified that therefore, the flexibility to increase the number of Benches has already been provided for in the proposed amendment to the Section. 3.29 The Hon'ble Chairperson stated that the insistence of the States on their right to nominate a person familiar with the States situation in the Benches was a fair point. In this regard, clarification was also sought from the Hon....
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....bunal is set up, then it would have only Regional Benches. He further stated that there was no bar on constitution of separate Tribunal for State. Further, if there are conflicting decisions between various State Tribunals, then such conflicts could be referred to National Tribunal. 3.33 The Secretary also clarified that the number of appeals should be limited to two and that there was no need for setting a State level Tribunal as appeal in a State should be decided at two levels and thereafter the taxpayer could go to the High Court. He further pointed out that as suggested by the Hon'ble Chairperson a separate Search-cum-Selection Committee could be made for selection of Technical Member (State). 3.34 The Hon'ble Member from Chhattisgarh sought clarification as to if the ScSC can have two Judicial Members and two other Members then why should the Tribunal be precluded from having two Judicial Members and two Technical Members. The Hon'ble Convener of the GoM responded that the rights of the States are secured as provision has been made for nominating Chief Secretary of the State in ScSC for selecting the Technical member of the States in which the Bench is located. 3....
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....ding District Judges. Hon'ble Member from Rajasthan suggested that the Benches in the State could be called "State Benches". 3.38 The Hon'ble Member from Andhra Pradesh stated that he was not for two plus two formulation but to have three Members in the pool, but the quorum of the Bench would be two. This would also enable speedy resolution of cases. He further added that the GoM has recommended a National Principal Bench and State Benches with power of State for appointing the Technical Members for the reason that this would ensure uniformity of judgement across the State Benches and he also added that having State Tribunals would mean that the appeals would lie from those Tribunals to National Tribunals thereby causing further delay in deciding appeals. 3.39 The Hon'ble Member from Maharashtra also suggested to adopt two plus two formulation as this would ensure representation of both Centre and State. The Hon'ble Member from Goa stated that if the Council so decides the formulation can be changed to two plus two but there would be practical difficulties in getting Technical Members as well as Judicial Members in that case especially in smaller States. 3.40 The Hon'ble M....
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....he two plus two formulation be adopted for National level and State level Benches with National Bench being the Principal Bench. In this regard, he also stated that, if approved by the Council, the ScSC as proposed by the GoM for selection of Technical Member (State) can be amended to include the Chief Justice of the High Court, Chief Secretary of the State along with a Secretary level officer nominated by the State so as to secure the rights of the States. 3.43 The Hon'ble Member from Tamil Nadu stated that there needs to be clarification as to whether the proposal is for a National and State Tribunal with the National Tribunal having appellate jurisdiction or whether the National and State Tribunal would be covering different set of subject matter with the appeal lying to the High Court from both these Tribunals. He suggested that the ScSC for Technical Member (Centre) should also comprise State High Court Judge, President of the Tribunal and Secretary of the Centre and Chief Secretary of the concerned State. 3.44 The Hon'ble Member from Punjab raised issue of transfer of Technical Member (State) which was also supported by Bihar and Tamil Nadu. The Hon'ble Chairperson confirme....
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....ch is located as may be the nominated by such State Government. Regarding the ScSC for appointment of other Members, it was agreed to go ahead with the recommendations made by GoM. 3.48 The Hon'ble Chairperson directed the Secretary to the Council to make a draft of the changes proposed consequent to the discussion in the Council and to circulate it electronically among the Members to invite their comments and thereafter, to make further changes to the draft. 3.49 The Secretary proposed that the Council may authorise the Hon'ble Chairperson to finalise the draft and proposed for the closure of the GoM on GSTAT. 3.50 The Council agreed to authorise the Hon'ble Chairperson to finalise the draft and also agreed to close the GoM on GSTAT. Agenda item 3; Ratification of the Notifications. Circulars and Orders issued by the GST Council 4.1 The Secretary took up the next agenda pertaining to ratification of the Notifications, Circulars and Orders issued by the GST Council at Sr No. 3 (page no. 130-133 of the agenda). 4.2 The Hon'ble Member from Delhi referred to the Circular No. 189/01/2023-GST dated 13.01.2023 (on page 133) of the Agenda No 3 and stated that Kachri Papad is b....
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....consideration of the GST Council. Agenda Item 4(1): Amendment in Section 23 of the CGST Act. 2017 5.1 The Principal Commissioner, GST Policy Wing gave a presentation (Annexure-4). He stated that Agenda item 4(i) is regarding amendment in the Section 23 of CGST Act. In the 48th GST Council meeting, it was recommended to give overriding effect to Section 23 of CGST Act over Section 24 and sub-section (1) of Section 22 of the CGST Act retrospectively with effect from 01.07.2017 so as to provide exemption from mandatory registration for small traders for intra-state supply of goods through e-commerce operators. However, the said amendment has created an anomaly that persons, who are required to pay duty under reverse charge mechanism on their inward supplies, would not be required to get registered if they are otherwise not making any taxable supply themselves, which was not the intention behind the said amendment. To correct this anomaly, the Law Committee has recommended after detailed discussions that the Section 23 of CGST Act be amended retrospectively with effect from 01.07.2017 to give overriding effect only to sub-section (2) of Section 23 (and not to sub-section (1) of secti....
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....scheme may be finalized in consultation with GSTN, based on readiness of the portal for implementation of the same. 5.2.2 Hon'ble Member from Tamil Nadu suggested that the time period under Section 62(2) of CGST Act, 2017 may be increased to 90 days, instead of 60 days with an additional 60 days as proposed, to synchronize it with the time limit of filing of appeal or recovery. 5.2.3 The Principal Commissioner, GST Policy Wing clarified that the period of 60 days, with an additional period of 60 days, has been recommended by the Law Committee to align it with the time period of appeal which is 90 days, extendable by another 30 days by the Appellate Authority. The Council agreed with the said recommendation of the Law Committee. Council also recommended that the date for amnesty scheme may be finalized based on preparedness of the portal. Agenda Item No. 4(iii) - Change in Place of Supply of transportation of goods under Section 13(9) of the IGST Act, 2017 5.3 Principal Commissioner, GST Policy Wing stated that the third agenda is about the change in place of supply of transportation of goods under Section 13(9) of IGST Act 2017. He said that in the 48th GST Council meetin....
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....e fee of Rs 100/- + Rs 100/-(CGST & SGST respectively) per day, subject to maximum of 0.25% of the turnover, to Rs 25/- per day, subject to a maximum of an amount calculated at 0.02 percent of the turnover in the State or Union territory, under CGST Act with similar late fee under SGST Act. The second slab for Registered persons having an aggregate turnover of more than Rs. 5 crore and upto Rs. 20 crore in a financial year, for which late fee has been proposed to be reduced to Rs 50/- per day subject to a maximum of an amount calculated at 0.02 percent of the turnover in the State or Union territory, under CGST Act with similar late fee under SGST Act. He stated that as per the slabs provided, maximum late fee for delayed filing of annual return would be Rs 20,000/- for the taxpayer with aggregate turnover of Rs 5 crore and would be Rs 80,000/- for the taxpayer with aggregate turnover of Rs 20 crore. 5.4.2 He further stated that Law Committee has also recommended one time Amnesty Scheme for non-filers of FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 as per the Agenda. He informed that Amnesty Schemes for non-filers of FORM GSTR-1 and FORM GSTR-3B were brought a number of times in the ....
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....the MSME Sector has been substantially taken care of and various measures have been taken for the MSME Sector. She further stated that number of provisions had been provided in the Budget 2023-24 for the benefit of MSMEs, including the provision that if any payment due to a micro or small enterprises is not paid by the PSUs within the time limit as specified, then they will not be able to claim offset within that financial year. Legal provisions have been made where all PSUs under Centre have been instructed to clear the payments due to MSMEs within the due 45 days for claiming the offset for that year. However, such instructions are not applicable for PSUs under State. She further stated that this provision has been brought out to promote timely payments to MSMEs. She clarified that both the Centre and States are taking substantial measures to protect and promote the MSMEs in best possible way. 5.4.7 Hon'ble Member from Tamil Nadu expressed his apprehension regarding reduction on the cap of late fee from 0.25% to 0.02% which would be a huge drop by cutting it to almost 90% and whether such steep reduction would act as a deterrence for delayed filing of annual return in FORM GSTR-....
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....f registration applicants 5.5 The Principal Commissioner, GST Policy Wing informed that rule 8 and rule 9 of CGST Rules have been amended with effect from 26.12.2022 vide Notification No. 26/2022- Central Tax, based on the recommendations of the Council in 48th meeting, to mandate biometric-based authentication of Aadhaar for high-risk applicants and also to provide for exemption from such biometric-based authentication in States/ UTs other than State of Gujarat. However, the said amendments has resulted in certain anomalies, as detailed in the agenda. He mentioned that Law Committee deliberated on the matter and recommended that rule 8 of CGST Rules may be amended with effect from 26.12.2022 to substitute sub-rule (4A) and to amend sub-rule (4B) as detailed in the agenda. Law Committee has also recommended that Notification No. 27/2022- Central Tax dated 26.12.2022 may also be amended with effect from 26.12.2022 to correct the anomaly. The Secretary sought for the comments from the members in case they did not agree with the amendments recommended by Law Committee. The Council agreed with the said recommendations of the Law Committee along with the draft Notifications. Agenda i....
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....s of the Law Committee made in agenda item 4(vi), along with the suggestion made in the Officers' meeting. Agenda item 4(vii): Extension of time limit under sub-section (10) of section 73 of CGST Act for FY 2017-18. FY 2018-19 and FY 2019-20. 5.7 Principal Commissioner (GSTPW) informed that there have been requests from tax administrations for further extension of time limit under Section 73 of CGST Act for issuance of Show Cause Notices (SCN) and Orders for financial year 2017-18, 2018-19 and 2019-20, considering that the scrutiny and audit were delayed because of Covid-19 pandemic. He informed that the issue was discussed by the Law Committee and it was observed that earlier, such extension was given for the F.Y. 2017-18. It was felt by the Law Committee that while there may be a need to provide additional time to the officers to issue notices and pass orders for FY 2017-18.2018-19 and 2019-20 considering the delay in scrutiny, assessment and audit work due to COVID-19 restrictions, however, the same need to be made in a manner such that there is no bunching of last dates for these financial years as well as for the subsequent financial years. After detailed deliberations. Law....
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.... from other States and get these vehicles registered in Himachal Pradesh, resultantly Himachal Pradesh does not get any tax benefit. He stated that he hoped that the issue would be addressed in the next GST Council meeting. Principal Commissioner (GSTPW) informed that that this issue was taken up by the Law Committee and two contradictory views emerged on the issue, due to which the Law Committee has not been able to reach a conclusion. He assured that this issue would be taken up again in the Law committee meeting and would be taken up in the future GST Council Meeting. Agenda item 5: Recommendations of the Fitment Committee for the consideration of the GST Council 6.1 The Secretary introduced the agenda item relating to the recommendations of the Fitment Committee. These recommendations had been given in four (04) Annexures where the first three related to Goods and the fourth one related to Services. The first Annexure provided details of the items (Goods) where tax rate changes or clarifications were being recommended; the second Annexure listed items (Goods) where no tax rate changes were being recommended and the third Annexure listed items (Goods) where the issues were def....
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....il Sharpeners. 6.8 The Secretary then sought the opinion of the Hon'ble Members on recommendations of the Fitment Committee regarding IGST exemption to a Tag, tracking device or data logger affixed on durable container at the time of import, as is available to container under Customs notification 104/94-Cus ; and amendment of the entry at Serial number 41A of Notification number 1/2017-Compensation Cess (Rate) pertaining to exemption from compensation Cess on coal rejects when supplied to and by a coal washery on which Compensation Cess had already been paid subject to the condition that no ITC has been availed by any person. Decision: The Council agreed with the recommendations of the Fitment Committee and recommended to explain that a tag, tracking device or data logger already affixed on a container of durable nature at the time of import shall be eligible for IGST exemption, as is available to the said container under the notification 104/94-Cus and also agreed that no such exemption would be available to tags, tracking devices and data loggers when imported separately. The Council also agreed for amendment of the entry at Serial number 41A of Notification number 1/2017-Compe....
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....sioner, GSTPW then presented the Fitment agenda pertaining to the goods where no changes had been recommended by the Fitment Committee. He stated that in this agenda one proposal was for reduction of GST rate on Tendu leaves which was proposed by Hon'ble Member from Odisha in the last GST Council meeting. He informed that Odisha, Madhya Pradesh and Chhattisgarh were invited to the Fitment Committee meeting for their views on the issue. Odisha requested for reduction of GST rate on Tendu leaves from 18 % to Nil or 5% whereas Madhya Pradesh and Chhattisgarh were of the opinion that no rate reduction should be recommended on Tendu leaves as post GST the trading of Tendu leaves had increased. In view of this Fitment committee had suggested no change in GST rate on Tendu leaves. He further informed the Council that in the Officers Meeting, Telangana also supported the reduction in tax rate on Tendu leaves, however besides Telangana and Odisha, all other States were not in favour of any change in GST rate on Tendu leaves. 6.18 The Hon'ble Member from Odisha stated that in case Tendu leaves were exempted from GST, there would not be any loss in revenue to both the State and Central Gover....
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....at in order to bring the unorganized sector of Tendu leaves into the supply chain, tax was levied on supply of this produce on RCM basis. 6.25 The Hon'ble Member from Andhra Pradesh supported the view of Odisha that if the GST on Tendu leaves was reduced, then the aggregator might pass on some benefit of tax reduction to the Tendu leave pluckers. 6.26 The Secretary stated that if all Hon'ble Members agreed, then the tax rate might be reduced to 5% on RCM basis which would ensure that the item would remain within the value chain while benefit could accrue to the pluckers. 6.27 The officer from Telangana suggested reducing the GST rate on Tendu leaves. 6.28 The Secretary stated that the tax rate on Tendu leaves was discussed in the 15th meeting of the GST Council and though the recommendation of the Fitment Committee was for 5% but the Council decided to levy 18% GST on Tendu leaves. It was deliberated again in the Council, however no change was recommended. He stated that as it was a Council decision, the Council might continue with no change in the GST rate on Tendu leaves. Decision: The Council agreed with the recommendation of the Fitment Committee for retaining the GST rate....
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.... be taxed under Reverse Charge Mechanism (RCM) The Fitment Committee recommended that same dispensation with regard to payment of GST under RCM as applicable to Central and State Governments might be extended to the Courts and Tribunals also. There was consensus in the Officers meeting on this. Decision: The Council agreed with the recommendations of the Fitment Committee regarding the agenda points on Services as detailed in Annexure-IV. 6.34 The Hon'ble Member from Himachal Pradesh stated that Himachal Pradesh, Jammu and Kashmir and Uttarakhand have a large apple based economy However' the apple industry is getting affected due to increase in the tax rate on carton boxes from 12% to 18%. He requested that the rate on carton boxes may be reduced to 5% as this would help the apple growers in Himachal Pradesh, Jammu and Kashmir and Uttarakhand. He requested that the issue may be got examined by the Fitment Committee. 6.35 The Hon'ble Chairperson stated that since carton boxes are used in various industries and not only for packaging fruits, the proposal to reduce tax rate on carton boxes used for packaging horticulture produce only, as suggested by the Hon'ble Member from Himacha....
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....ha Oil and to examine if there could be other class of supplies that could be subjected to reverse charge to augment revenue. 7.3 The Hon'ble Convenor of GoM informed the Council that the GoM had held three meetings. The first meeting was held on 06th July, 2021, the second meeting was on 31st August, 2021 and the third and the final meeting was held on 07th July, 2022. He then informed the Council that the GoM had extensively deliberated on broad challenges associated with the complexity involved in the implementation of Capacity based levy in this sector and stated that GST is a destination-based tax on supply of goods and services and not on their production. He further asserted that the Constitution does not provide authority for capacity based levy of GST. He also stated that capacity based taxation is extremely complex and requires frequent changes in the rate structure and emphasized that there are no further check and verification in supply chain which could lead to revenue leakages. It was also emphasized that capacity-based taxation suppresses the competition and goes against the small producers who are not capable of making huge investment in capital infrastructur....
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.... etc. He stated that if the detail of labourers is also added in the return, it would help in verification and cross examination of production. He also emphasized that sometimes large-scale manufacturers take registration in the name of dummy persons in lieu of some remuneration and if the goods are seized, then the responsibility is fixed on the dummy person instead of the actual manufacturer and therefore, he emphasized that more efforts are required to curb this practise. He stated that despite the keen interest evinced by the Hon'ble Union Finance Minister of India in curbing such malpractices, there is a largescale black marketing in the trade of Pan Masala. He thereafter stated that there is large scale evasion of tax in this sector as there is a high demand for these products in the market and even if such evasion is eventually caught, dummy persons are prosecuted and actual offenders walk free. He stated that if the recommendations of GoM are incorporated in totality, then the supervisory authority/ inspection authority will have tremendous power in their hands and there could be a possibility to collude and manipulate the reports. He thereafter stated that such a capacity ....
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....er specific rate can be imposed. He thanked the members of the GoM for the detailed consultations on the issue and for coming up with a very comprehensive report. 7.10 The Hon'ble Member from Uttar Pradesh then requested the Hon'ble Chairperson to accept the report of GoM however he emphasized that the matter should be forwarded to Fitment committee/ Law committee to deliberate upon a possible solution to curb the tax evasion in this sector. 7.11 The Secretary sought the permission of the GST Council to close the GoM on Capacity based taxation and Special Composition Scheme in certain sectors on GST. The Hon'ble Chairperson thanked the Members of the GoM for their comprehensive report and also stated that the suggestion of Hon'ble Member from Uttar Pradesh to find a possible solution to curb tax evasion shall be considered by the Council. The Report of the GoM was accepted by the Council. Agenda Item 7: Closure of Group of Ministers (GoM) on lew of Covid Cess on Pharma I and Power Sector in Sikkim. 8.1 The Secretary proposed the closure of the GoM on levy of Covid Cess on Pharma and Power Sector in Sikkim and thanked the Chairpersons and Member of these GoM for their detailed ....
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.... tax administrations would not be appropriate. Further, sanction and the accounting treatment would not be easy in the respective tax administrations as the Grant-in-aid is given in very specific set of circumstances where as GSTN works as a company on a cost recovery basis for the services provided. Therefore, this proposal was agreed to be dropped and clause five was deleted from the draft. 10.3 The Secretary stated that it was further agreed in the officers meeting that the demand for capital expenditure should also be incorporated in the advance user charges requested from tax administrations by GSTN. Tax administrations would be provided separate accounting for Capex and Opex. He proposed that in principle approval for this change in the draft revised revenue model of GSTN may be given by the GST Council. 10.4 The Secretary further stated that above proposal would lead to drafting changes, for which a preliminary draft was enclosed. The draft would be finalized by GSTN Board on the basis of in principle approval of the GST Council as proposed above. He informed the Council that all other proposed changes in this agenda remain the same. 10.5 The officer from Tamil Nadu stat....
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....all States. 12.3 The Hon'ble Member from Tamil Nadu stated that it is a draft model and many States have developed their own Audit Manual like Tamil Nadu. It was stated that it would be recommendatory in nature and the States could take guidance and follow the good points from the Model All India GST Audit manual. 12.4 In response of the Hon'ble Member from Tamil Nadu, the Secretary confirmed that this is only a model Audit Manual for guidance to States and States are free to make their own GST Audit Manual and proceed accordingly and the same is put up just for information of the GST Council, Accordingly, same was being circulated. Agenda Item 13: Decisions of GST Implementation Committee for the information of the Council 13.1 Principal Commissioner, GST Policy Wing in his presentation informed the Council that a decision was taken by the GST Implementation Committee (GIC) regarding sharing of GST data with Department of Telecommunications (DoT), Ministry of Communications and the same was placed before the Council for information. Decision: The Council took note of the decision of the GST Implementation Committee and ratified the same. Agenda Item 14: Ad-hoc Exemptio....
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....eir dues. He further informed that Rajasthan's AG Audit for the F.Y. 21-22 was about to be completed and requested to release the 80-90% of the total Compensation Cess without AG's certificate and the rest could be adjusted later. The Hon'ble Member also requested to release the amount due to them for the F.Y. 21-22 before 31st March in this financial year. 15.4 The Secretary informed the Hon'ble Member that the 95% of the due amount is paid on provisional basis and AG's certificate is asked for the rest 5% and that the Hon'ble Finance Minister had announced this earlier and letters had been sent to the Chief Secretaries of the States for sending the AG's certificate. 15.5 Further, the Hon'ble Member from Rajasthan raised the issue of extending the period of Compensation Cess in support of Kerala. 15.6 Hon'ble Chairperson stated that it was impossible to extend period of Compensation Cess legally. If it was extended, then revenue would have to be raised by imposing Cess on items having 28% GST but Compensation Cess had already been extended till 2026 to service the loans taken during Covid. Further, extending the period of Compensation Cess would send the message to publ....
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....e Minister for Medical, Health & Family Welfare Department and Publicity & Information Department Finance, Parliamentary Affairs and Health & Family Welfare Minister Finance Minister Odisha 16 Shri Niranjan Pujari Shri Harpal Singh 17 Punjab Cheema 18 Puducherry Shri K. Lakshminarayanan Minister for Public Works 19 19 20 20 Rajasthan Dr. Subhash Garg State Minister for Technical Education (Independent Charge), Ayurveda & Indian Medicines (Independent Charge), Public Grievances & Redressal (Independent Charge), Minority Affairs, Waqf, Colonisation, Agriculture, Command Area Development & Water Utilisation Minister of Tourism & Civil Aviation and Commerce & Industries Minister for Finance and Human Resources Management Sikkim Shri B. S. Panth Tamil Nadu 21 Dr. Palanivel Thiaga Rajan Page 39 of 77 CHAIRMAN'S INITIALS MINUTE BOOK 22 Uttar Pradesh Shri Suresh Kumar Khanna Minister of Finance, Parliamentary Affairs 23 West Bengal Smt. Chandrima Bhattacharya Minister of State for Finance ANNEXURE-2 List of Officers from Centre and the States/UTs who participated in the 49th Meeting of the GST Council held on 18th Febr....
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....ri Nitin Gupta Technical Officer 34 Government of India Shri Sandesh Lokhande Technical Officer GSTN 35 Ms Sanjali Dias SVP 36 GSTN Shri Naveen Agarwal OSD to CEO GSTN 37 Shri S Mohan OSD to HR GSTN 38 Shri Anil Chatwal Chief Accountant 39 Government of India Shri Rakesh Kumar Kapur Consultant in DG(Audit) Page 42 of 77 Shipra Shipra MINUTE BOOK 40 40 GST Council Secretariat Shri Kshitendra Verma Director 41 GST Council Secretariat Shri S.S.Shardool Director 42 GST Council Secretariat Shri Joginder Singh Mor Under Secretary 43 43 GST Council Secretariat Ms. Reshma R. Kurup Under Secretary 44 GST Council Secretariat Ms. Priya Sethi Superintendent 45 45 GST Council Secretariat Shri Dharambir Superintendent 44 46 GST Council Secretariat Shri Irfan Zakir Superintendent 47 42 GST Council Secretariat Shri Naveen Kumar Superintendent 48 886 GST Council Secretariat Shri Sachin Goel Superintendent 49 44 GST Council Secretariat Ms. Ambika Rani Superintendent 50 GST Council Secretariat Shri Niranjan Kishore Superintendent 51 GST Council Secretariat Shri Rakesh Joshi Superintendent 52 12 ....
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....xation Department Principal Secretary 85 Himachal Pradesh Shri Bharat Khera (Excise & Taxation) Himachal Pradesh Shri Yunus 86 Commissioner of State Tax and Excise Himachal Pradesh Shri Rakesh Sharma 87 Additional Commissioner of State Tax and Excise 88 Jammu and Kashmir Dr. Rashmi Singh 89 Jammu and Kashmir Ms. Ankita Kar 90 90 Jammu and Kashmir Ms. Namrita Dogra Jharkhand 91 Ms. Aradhana Patnaik Jharkhand 92 Shri Santosh Kumar Vatsa Karnataka 93 Ms. C. Shikha 94 Karnataka 94 Dr. M.P. Ravi Prasad Commissioner State Taxes Additional Commissioner State Taxes(Tax Planning, Policy and Advance Ruling) Additional Commissioner State Taxes(Administration and Enforcement) Principal Secretary (Commercial Tax) Commissioner, Commercial Taxes Commissioner of Commercial Taxes Additional Commissioner of Commercial Taxes (P & L) Commissioner of State Kerala 95 Shri Ajit Patil Tax 96 96 Kerala Shri. Abraham Renn S Additional Commissioner-1 Page 46 of 77 Shipra Shipra MINUTE BOOK Kerala 97 Dr. Shyjan D PS to Hon'ble Minister for Finance 98 Madhya Pradesh Shri Lokesh Kumar Jatav Commissioner, State Tax 99 Madh....
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....Tripura Shri Brijesh Pandey Secretary, Finance 131 Tripura Ms. Rakhi Biswas Chief Commissioner of State Tax 132 Tripura Mr. Ashin Barman State Admin GST Uttarakhand 133 Dr. Ahmad Iqbal Commissioner of State Tax Additional Commissioner Uttarakhand Shri Anil Singh 134 of State Tax Joint Commissioner of Uttarakhand 135 Shri Anurag Mishra State Tax Uttar Pradesh 136 Shri Nitin Ramesh Gokaran Principal Secretary, State Tax Commissioner of State Uttar Pradesh Ms. Ministhy S 137 Tax 138 Uttar Pradesh Shri Paritosh Kumar Mishra Deputy Commissioner(GST), State Tax HQ P.S. to Hon'ble Finance 139 Uttar Pradesh Shri Amit Pandey Minister, UP Page 49 of 77 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK 140 West Bengal Dr Manoj Pant Additional Chief Secretary, Finance Department Shipra 141 West Bengal Shri Khalid Aizaz Anwar Commissioner of State Tax West Bengal 142 Shri Rajib Sankar Sengupta Senior Joint Commissioner of Revenue 143 West Bengal Shri Shantanu Naha OSD to Hon'ble Minister Page 50 of 77 Document 2 Shipra MINUTE BOOK APPEAL ANNEXURE-3 GST Appellate Tribunal Report of Group of Ministers on cons....
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....i Vs. Union of India, CA No 8588 of 2019 - Rojer Mathews Vs. Union of India, WP (C) 804 of 2020 - Madras Bar Association Vs. Union of India Took note of the Tribunal Reforms Act, 2021 passed by the Parliament, provisions of which govern the appointment of Members and Chairpersons of various Tribunals and their terms and conditions 17th August 2022 In Bhubaneswar (Physical meeting) To discuss the issues and finalize the recommendations. Recommendation 1/5: One National GST Tribunal with Benches in every State . INATION MARKET Cooperative Federalism: The GST legal framework has been designed in the spirit of cooperative federalism and the CGST/SGST Acts are pari materia in nature. In the same spirit, the GoM envisaged having one National tribunal with Benches in every State with One Nation. One Tax. One Tribunal. Interest of the taxpayer: The Goods and Services Tax was introduced in the country to have one common indirect tax law in the country. The GoM discussed that constitution of State level Tribunals may lead to divergent rulings as experienced in AAR AAAR (Advance Ruling Authority) which has created a lot of confusion for taxpayers on key issues. Therefore, from....
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.... State in which the bench is located NATION TAX MARKET Recommendation 3/5: Composition of Benches NATION TAX MARKET âš« Composition: The bench should consist of one Judicial and one Technical Member. The Technical Member should be a Technical Member (Centre) or a Technical Member (State) in a 50:50 ratio in every State. âš« In case difference of opinion In cases where there is a difference of opinion between two members, the President may add a third Member from another bench in the same State. If a Member in that State is not available, the same could be taken from a bench in another State. âš« Provision of Single Member Bench Single Member bench should be empowered to hear cases with tax implication upto 50 lakh, where no question of law is involved. Recommendation 4/5 Qualification of Members Judge of the Supreme Court (Retd.) or Chief Justice of High Court (Retd.) President Judicial Member Judge of a High Court (Retd.) or District Judge or an Additional District Judge (With 10 years experience) Technical Member (Centre) Min. 25 years of Group A Service + Member of IRS (C&CE) or AIS with three- year experience in GST or existing law Technica....
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....t may be made in Finance Bill, 2023 accordingly. 4(ii) [Vol 1- Pg 136- 138] Amendment to Section 62 of CGST Act, 2017 " amendment may be made in section 62 of CGST Act, 2017 > to increase the time period of 30 days specified under section 62(2) to 60 days. ➤ to insert a proviso to section 62(2) to provide that assessment order shall also be deemed to have been withdrawn if the concerned returns are filed beyond the period of 60 days, but within an additional period of 60 days, with an additional late fee of Rs. 100 per day during this additional period of 60 days. Agreed Agenda No Issue/Proposal Status during Officers 4(ii) [Vol 1- Pg 136- 138] an amnesty scheme may be provided through a notification under section 148 of CGST Act for conditional deemed withdrawal of assessment orders for past cases where the concerned returns could not be filed within 30 days of the assessment order but have been filed along with due interest and late fee upto a specified date, irrespective of whether appeal has been filed or not against the assessment order, or whether the said appeal has been decided or not. The specified date to be finalized in consultation....
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....or such amnesty GSTR-1 GSTR-3B now. > late fee may be waived which is in excess of Rs. 20,000/- (Rs. 10.000/- under CGST and Rs. 10,000/- under SGST UTGST) for the registered persons who failed to furnish the annual retum under section 44 of CGST Act by the due date for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22, but fumish the said return between 01.05.2023 to 31.07.2023. Amnesty for non-filers of FORM GSTR-10 > late fee may be waived which is in excess of Rs. 1000/- (Rs. 500/- under CGST and Rs. 500/- under SGST) for the registered persons who failed to furnish the final return in FORM GSTR-10 by the due date but furnish the said retum between 01.05.2023 to 31.07.2023. Final time period for filing of the returns under these ammnesty schemes to be decided in consultation with GSTN, based on system readiness on the portal for the same Amendment in CGST Rules and Notification for biometric-based Aadhaar authentication of registration applicants rule 8 of CGST Rules may be amended with effect from 26.12.2022: >substitution of sub-rule (4A) of rule 8; and > amendment of sub-rule (4B) of rule 8 â–ª amendment may be made in notifi....
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....notification under section 168A of CGST Act: > For FY 2017-18, the time limit may be extended from the present 30th September 2023 to 31 December 2023; ➤ For FY 2018-19, the time limit may be extended from the present 31 December 2023 to 31 March 2024 ➤For FY 2019-20, the time limit may be extended from the present 31 March 2024 to 30th June 2024 Status during Officers Meeting Agreed. One view was that already the extension in time limit to issue SCN/orders under section 73(10) has been provided for FY 2017-18 Extending the timelines further will not. extend any tangible benefit. On the other hand, this will be perceived as adversarial for taxpayers and and therefore, the said extension of time limit under section 73(10) may not be provided. Page 58 of 77 Shipra Shipra MINUTE BOOK Ratification of Notifications and Circulars Agenda 3: Ratification of Notifications, Circulars etc. [Vol 1-Pg. 131-133] Act Rules Nottications Curculars Not Description/Remarke CGST Act COST Two (02) Central Tax Notifications issued (No. 26/2022 and Rules 27/2022) & Four (04) Central Tax (rate) Notifications issued (No. 12/2022 to 15/2022) UTGS....
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....rvices Tax Act, 2017 and its effect on limitation iv Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016 v. Prescribing manner of filing an application for refund by unregistered persons vi. Clarification regarding GST rates and classification of certain goods vii. Clarification regarding GST rates and classification of certain services > In addition. GIC, by circulation, approved sharing of aggregated GST Data with Department of Telecommunication. Ministry of Communications in respect of certain HSNs pertaining to telecom equipment (Agenda 13, vol-2, page 11) CHAIRMAN'S INITIALS Page 59 of 77 CHAIRMAN'S INITIALS MINUTE BOOK Recommendations of the Law Committee Law Committee Recommendations for Trade facilitation and Reducing litigation Page 60 of 77 Shipra Shipra MINUTE BOOK Agenda 4(ii): Amendment to Section 62 of CGST Act, 2017 (1/2) [Vol 1-Pg. 136-138] Issue: Section 62(2) of CGST Act provides that the best judgment assessment order issued under section 62(1) shall be deemed to be withdrawn if the relevant return und....
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....RMAN'S INITIALS MINUTE BOOK Agenda 4(iv): Rationalisation of Late fee for FORM GSTR-9 and Amnesty for non-filers of FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 (2/2) [Vol 1-Pg 141-147] LC has also recommended Amnesty for non-filers of FORM GSTR-4 late fee may be waived which is in excess of Rs 500/- (Rs. 250/- under CGST and Rs. 250/- under SGST) and may be fully waived where the total amount of central tax payable in the said retum is mil. for the registered persons who failed to fumish the rehun in FORM GSTR-4 for the quarters from July, 2017 to March 2019 or for FY from 2019-20 to 2021-22, by the due date but fumish the said retum between 01.05.2023 to 31.07.2023 Amnesty for non-filers of FORM GSTR-9 â– late fee may be waived which is in excess of Rs. 20,000/- (Rs. 10,000 under CGST and Rs 10,000/- under SGST / UTGST) for the registered persons who failed to funish the ammal retum by the due date for any of the financial years 2017-18, 2018-19, 2019-20., 2020-21 or 2021-22, but fumish the said retum between 01.05.2023 to 31.07.2023. Amnesty for non-filers of FORM GSTR-10 â– late fee may be waived which is in excess of Rs. 1000/- (Rs 500/- under CGST and ....
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....ation and extension thereof may not be hard-coded in the Act and instead, may be prescribed through the Rules . amendments may be carried out in sub-section (1) of section 30 of the CGST Act and sub- rule (1) of rule 23 of the CGST Rules accordingly. notification may be issued under section 148 of CGST for providing an amnesty in the past cases where registrations have been cancelled on account of non-filing of returns, by allowing such persons to file application for revocation of cancellation of registration by a specified date. The dates for amnesty scheme to be finalized in consultation with GSTN. based on readiness of the system >This would provide relief to taxpayers, specially MSMEs, whose registrations were cancelled in past and who could not file application for revocation within the time, by giving them opportunity to file such application now, and will also provide additional time for filing such application for revocation of cancellation of registration in future. Agenda 4(iii): Change in Place of Supply of transportation of goods under Section 13(9) of IGST Act, 2017 Issue: [Vol 1-Pg. 139-140] Representations has been received that while export freight....
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.... of CGST Act, a person dealing exclusively in exempt goods and/or services will no longer be required to obtain mandatory registration under the Act even if he is liable to pay tax under reverse charge on some supply of goods or services received by him, which was never the intention behind the said amendment Proposal: LC has recommended that âš« the proposed amendment in section 23 of CGST Act be limited to giving over-riding effect to sub- section (2) of section 23 over sub-section (1) of section 22 and section 24 of CGST Act Amendment may be made in Finance Bill. 2023 accordingly. >This would remove the unintended anomaly emerged due to amendment in section 23 proposed in Finance Bill, 2023 and will ensure that amended section 23 does not exempt the person dealing exclusively in exempt goods and/or services from obtaining registration if he is liable to pay tax under reverse charge on some supply of goods or services received by him. Agenda 4(v): Amendment in CGST Rules and Notification for biometric-based Aadhaar authentication of registration applicants (1/2) [Vol 1-Pg. 148-152] Mo CHAIRMAN'S INITIALS Issue: Rule 8 and Rule 9 of CGST Rules have been amend....
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....fficulties were faced by government departments during the COVID period due to reduced staff and exemption to certain categories of employees from attending offices etc, resulting in delay in audit and scrutiny process. though the time period for issuance of show cause notice and demand orders for FY 2017-18 has been extended vide Notification No. 13/2022- Central Tax dated 05.07.2022 based on recommendations of the Council made in 47th meeting, however, the same is not sufficient considering the delay in scrutiny and audit process due to COVID It has been represented to either extend the timelines under sub-section (10) of section 73 of the CGST Act for FY 2017-18, 2018-19 and 2019-20 to 31.12.2024 or to extend the timelines under section 73 to those under section 74 of the CGST Act. Deliberations by LC: LC took the view that it may not be desirable to extend the timelines in such a manner so that it may lead to bunching of last date of issuance of SCN/ order under section 73 and section 74 for a number of financial years. âš«LC did not agree with the proposal to extend timelines under section 73(10) of CGST Act to the timelines under section 74 of CGST Act for a....
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.... Status after officers' meeting Agreed Agreed Page 67 of 77 CHAIRMAN'S INITIALS MINUTE BOOK Agenda No. 5 (Annexure-I) S.No. 3 Page No. 160 5 (Annexure-I) S.No. 4 Page No. 161 Issue Proposal To insert a proviso the notification No. 104/94- Cuetoma dated 16.03.94 that if trackang device is already affixed on container, no separate IGST shall be levied on such affixed device and the 'Nil' IGST treatment available for the container under above notification shall also be available subject to existing conditions. However, such tracking devices imported separately for affixing on the containers, shall attract applicable IGST To amend the entry 41 Ain Compensation cess notification to cover 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 Status after officers' meeting Agreed Agreed तीर CHAIRMAN'S INITIALS Agenda No. 5 (Annexure-I). S.No 5 Page No. 161-162 Issue/Proposal GST rate on millet- based health mix consisting at least 70% of millets may be reduced from 18% to nil if it is sold in loose form of ....
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....ingly, Fitment recommended to insert an explanation in notification No. 12/2017-CT(R) dated 28.06.2017 ➤Courts and Tribunals bendes judicial functions, aleo perform certain commercial activities such as renting of their premises to telecommunication companies for installation of towers, renting of chambers to lawyers ➤Fitment Committee recommended that the same dispensation as available to Central and State Governments, Parliament and State Legislatures with regard to payment of GST under RCM may be extended to courts and tribunals also Status after officers' meeting Agreed Total 8 issues examined Goods > recommendations for making changes in GST rates/ issuing clarifications- 5 Agreed (Agenda 5 Annexure-I pages 157 to 162) ➤ recommendations for making no change - 2 (Agenda 5 Annexure-II pages 163 to 164) > issue deferred for further examination - 1 (Agenda 5 Annexure-III pages 165 to 169 Services • Total 2 issues examined. recommendations for making changes in GST rates issuing clarifications- 2 (Agenda 5: Annexure-IV pages 170 to 172) Page 69 of 77 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Recommendations of the Fi....
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....described as "Radio-navigational aid apparatus" is 18% Fitment Committee recommendations ➤insert a proviso in the notification that if such device is already affixed on container, no separate IGST shall be levied on such affixed device and the 'Nil IGST treatment available for the container under notification No. 104/94-Customs shall also be available subject to existing conditions. However, tracking devices imported separately for affixing on the containers, shall attract applicable IGST 4. Coal Rejects (page 161) Agenda 5 (Annexure-I) ⚫ Sl no. 41A of notification no. 1/2017-Compensation Cess (Rate), exempts coal rejects supplied by a coal washery arising out of coal, from compensation cess. provided compensation cess has been paid on raw coal and no input tax credit thereof has been availed by any person Principal users like power companies pay compensation cess on entire quantity of raw coal purchased and send the raw coal to coal washeries for beneficiation Washed coal is sent back to the principal user while the coal rejects are sold by the power companies to the washeries which disposes off the coal rejects. • Representation was received that in....
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....te of Odisha Pre-GST rate was around 5.91 %. and tendu trade is affected with higher GST rate ➤ State of MP MP has 3-tier cooperative system of collection of leaves (Pluckers-cooperative- beedi makers) which works on profit sharing basis; rate should not be reduced, average procurement of tendu leaves has increased compared to pre-GST State of Chhattisgarh Status quo to be maintained. They also have 3-tier system and profits are being shared with pluckers. • Fitment Committee Recommendations: Status quo to be maintained. Agenda 5 (Annexure-II) 2. Ships/vessels for breaking up (page 163-164) Presently, slups/vessels for breaking up attracts 18% GST This rate was recommended by the Council in 14th meeting Now, request is to reduce the rate to less than 10%. Ministry of Shipping represented that >shup breaking yards are upgraded to EU standards and are now in consonance with Hongkong convention, which is making India un-competitive vis-à -vis neighbouring countries who have not adopted such standards final product of slip breaking industry is ferrous waste and scrap, which also attracts 18%. Thus, if IGST on ships/vessels for breaking is reduced to less....
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....s an educational institution' for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions." Agenda 5 (Annexure-IVY 2. Services supplied by Courts Tribunals under Reverse Charge Mechanism (RCM) Pages 171-172) Services by Courts and Tribunals have been declared as neither a supply of goods nor a supply of service [Schedule III, Para 2 of CGST Act, 2017] Couts and Tribunals besides judicial functions, also perform certain commercial activities such as renting of their premises to telecommunication companies for installation of towers, renting of chambers to lawyers etc. As recommended by Law Committee, these commercial activities of Courts and Tabunals are taxable. The issue before Fitment Committee was whether the services supplied by Courts Tribunals can be taxed under Reverse Charge Mechanism (RCM) It may be noted that: Savices supplied by govemment to business entities are taxable under RCM with few exceptions such as services by way of transportation of goods and passengers. postal services and renting of immovable property GST on renting of immovable property by Central or State Governments or lo....
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....verse charge on mentha oil and to examine if there could be other class of supplies that could be subjected to reverse charge to augment revenue Thee meetings of Group of Ministers were held to deliberate on the issue. 17 Meeting-06 July 2021 on virtual mode 20 Meeting-31st August 2021 on virtual mode 30 Meeting-07th July 2022 Page 74 of 77 ST MINUTE BOOK Shipra® Broad Challenges in implementation of Capacity Based levy The GoM extensively deliberated on the issues like broad challenges associated with and complexities involved in the implementation of capacity-based levy in the sector: . GST is a destination-based tax applies to supply of goods or services and not on their production. Constitution doesn't provide authority for capacity-based GST . It is extremely complex & requires frequent changes in rate structure. . No further check and verification in the supply chain . It suppresses competition and goes against the small producers, who are not capable of making huge investment in capital infrastructure. It has deep rooted malaise. It may encourage "officer-producers" collusion at the level of jurisdictional officers. International Practices â‹....