TaxTMI 
TaxTMI 
Minutes of the 49th Meeting of GST Council held on 18th February, 2023
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.... for consideration of the GST Council i Amendment in Section 23 of the CGST 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....
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....Rajasthan 2. Sh. Harshwardhan Chauhan, Minister for Industries, Himachal Pradesh 3. Sh. Deepak Vasant Kesarkar, Minister for Education and Marathi Language, Maharashtra 1.5 The Secretary stated that the Hon'ble Members of the Council were aware that in its 47^th 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 place....
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.... with the agenda. The Hon'ble Chairperson informed the Council that the dues of compensation cess in all the cases where the AG's certificate had been provided by the State would be cleared that day. She highlighted that the Centre had 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 48^th Meeting of the GST Council 2.1 The first agenda item pertained to confirmation of the minutes of the 48^th Meeting of the GST Council held on 17^th 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. Furth....
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.... one Tribunal constituted at National level with Benches of that Tribunal at State level having regard to both population and tax payer base of that State. 3.4 The Hon'ble Convener of GoM further informed the Council that Members from U.P and Rajasthan had 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 coun....
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....e monetary limit was left to the decision of the Council. 3.7 The Hon'ble Convener stated that with respect to qualifications of Members, the GoM suggested that the President be a Judge of the Supreme Court (retd.) or Chief Justice of the High Court (retd.). With 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 submitt....
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....ember of the GoM he had agreed with all recommendations except one. He stated that States should have the power to constitute the State Tribunal. In this regard, he drew the attention of the Council to the Union List/ State List wherein Centre and State have been vested with the 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 ....
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....that the power to decide the number of Benches should be left to the States. Regarding the composition of Benches, it was suggested that appointment of Technical Member (Centre and State) in States need to be made alternately based on robust methodology like a fixed roster system 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,....
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....ned on the basis of their tax payer base and the States should have the power to determine the number of Benches. It was further mentioned that the ScSC should have a member recommended by the State where the Tribunal would be set up. He suggested that power should be given to States to appoint 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 Tr....
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....31 Commercial State laws and 31 Commercial Tax departments across various States. He further stated that the Court order should not dictate the administrative policy to the Union Government or to the GST Council, as this would be undermining the powers of the Executive. He further stated that the 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 Nati....
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....rther stated that since there are two Acts i.e. CGST and SGST, it is only desirable that Technical Members from both Centre and State are given representation in the Tribunals. 3.27 The Hon'ble Convener of GoM stated that while making the recommendations, all six Members of the GoM had considered the 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; th....
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....ing law under CGST Act that has been struck down by the High Court, provides for one Tribunal. The CGST Act provided for National Tribunal with Regional Benches and State Benches with Area Benches but it envisages only one Tribunal. This was decided six years ago at the time of inception of GST and this may 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 Benche....
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....at the pertinent question in this scenario was not the method of appointment of Members nor the constitution of the Benches but the right of the States to have a Tribunal of their own. 3.32 The Hon'ble Member from Rajasthan raised the issue of nomenclature of State Benches on the ground that when a National Tribunal 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....
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....e opined that the same can happen in now proposed system also. 3.37 The Hon'ble Member from Rajasthan stated that the Council should go with the formulation of two plus two and he also stated that there would be no difficulty in finding two Judicial Members as the terms of qualifications provide for retired persons including 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....
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....l with State Benches or for having separate National and State Tribunal. He added that once this issue is decided upon, the Council can decide upon the number and composition of the Benches. 3.42 The Hon'ble Convener of the GoM stated that after hearing the views of all the States, a decision may be taken by the GST Council that the 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 Tech....
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....ere no Judicial Member is available, a retired Judge of the High Court in whose jurisdiction the State Bench is located, as may be nominated by the Chief Justice of such High Court; Chief Secretary of the State in which the Bench is constituted and one Additional Chief Secretary/Principal Secretary/Secretary of the State in which the State Bench 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 Cou....
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.... while removing the liability from the books and that there may be requirement of some additional paper work or procedure to validate it. Principal Commissioner, GST Policy Wing requested Tamil Nadu to send the reference to Law committee in this regard so that Law Committee can examine it in detail. Agenda item 4 - Recommendations of the Law committee for the 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 n....
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.... payers for conditional deemed withdrawal of such assessment orders if the said returns are filed along with due interest and late fee upto a specified date, irrespective of whether the appeal has been filed or not against the assessment order, or whether the said appeal has been decided or not. He also mentioned that if approved by the GST Council, the date for the amnesty 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 b....
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....ommended that late fee for delayed filing of annual return may be rationalized for the taxpayers having aggregate turnover upto Rs. 20 crore in a financial year. He informed that the Law Committee has recommended two slabs. First slab for Registered persons having an aggregate turnover of upto Rs. 5 crore in the said financial year, for which the recommendation is to reduce the existing late 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 aggregat....
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....y different States, the GST Council cannot advise any State to follow any practice followed by a particular State. She further stated that if any State finds any other State practices appealing and fit for its functioning, then the State has the autonomy to independently implement such practices. Further, the Hon'ble Chairperson, as Union Finance Minister informed that in the Finance Budget 2023-24, 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 bo....
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....of Rs 20000/- for Rs 5 crore turnover would be more than enough as late fee for GSTR-9. The Council agreed with the said recommendations of the Law Committee along with the draft Notifications. Council also recommended that the date for amnesty scheme may be finalized based on preparedness of the portal. Agenda Item 4(v) Amendment in CGST Rules and Notification for Biometric -based Aadhaar Authentication of 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 48^th 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 agend....
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.... of cancelation of registration in past cases where such application could not be filed within prescribed time limit and where the registrations have been cancelled due to non-filing of returns. He added that during the officers' meeting, it was suggested that the dates for the said amnesty scheme could be finalized in consultation with GSTN, based on the readiness of the portal. The Council agreed with the recommendations 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....
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....l meeting and thereafter, the issue has not been placed as an agenda despite the State raising the matter. He stated that the State had given suggestions for resolution of the issue by amending section 10 (1) of the IGST Act and that the State has been losing considerable revenue for the last four years due to delay in addressing the said issue. He informed that due to less vehicle agencies in Himachal Pradesh, people buy their vehicles 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....
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....sue for the past periods may be regularized on as is basis. 6.6 The Secretary sought the opinion of Hon'ble Members on the recommendation of the Fitment Committee to reduce the tax rate on pencil sharpener from 18% to 12%. Decision: The Council agreed with the recommendations of the Fitment Committee to reduce the GST rate on pencil sharpener from 18% to 12%. 6.7 The Hon'ble Member from Punjab thanked the Council for reducing the tax rate on Pencil 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 exp....
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....e percentage of Millet in the product mix would not benefit the Millet growers much. 6.15 The Hon'ble Member from Bihar stated that the percentage of Millets in the product mix should be kept at 70%. 6.16 The Hon'ble Member from Uttar Pradesh suggested that the matter should be referred back to the Fitment Committee for further examination. Decision: The Council agreed to send back the proposal to the Fitment Committee for further examination. 6.17 Principal Commissioner, 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 F....
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....x rate of Tendu leaves. 6.24 The Secretary stated that out of three States, Madhya Pradesh and Chhattisgarh were in favour of status quo however Odisha is supporting reduction in tax rate on Tendu leaves. He further stated that there might be implication for other States also since GST is a consumption/destination based taxation. He further stated that the view of Hon'ble Member from Odisha was correct that there was no tax implication provided that there was no evasion. He further stated that 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....
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....nd State Governments by way of conduct of entrance examination for admission to educational institutions. The Fitment Committee had recommended for insertion of an explanation in notification number 12/2017- CT(R) dated 08/06/2017 which was discussed in the Officers meeting and agreed to. He further stated that the other agenda on services was to examine whether the services supplied by the Courts/ Tribunals which are commercial in nature like renting of space to telecom towers and renting of lawyers chambers etc., can 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 c....
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....ty levy of GST based on the capacity of manufacturing unit and special composition scheme in certain evasion prone sectors like pan masala, gutka, brick kiln, sand mining etc, with reference to the current legal provisions; to examine whether any change is required in legal provision to allow such levy; to examine the impact of such levy on the destination nature of current GST design and to examine any other administrative or systemic mechanism to block leakage in this sector and to examine the impact of levy on reverse 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. 7.3 The Hon'ble Convenor of GoM informed the Council that the GoM had held three meetings. The first meeting was held on 06^th July, 2021, the second meeting was on 31^st August, 2021 and the third and the final meeting was held on 07^th 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 n....
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.... Convenor concluded the report and invited comments from the Members of the Council. 7.5 The Hon'ble Member from Uttar Pradesh, who was also a member of the GoM thanked the Hon'ble Chairperson for taking a special interest in capacity based taxation and special composition scheme in certain sectors in GST. He stated that the report has a provision of Special Monthly Return indicating machine wise/shift wise production and disclosing details like machine disposed-off, machine added, and inputs procured and utilized in quantity and value terms 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....
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.... stated that they have already implemented track and trace mechanism for VAT on alcohol in Rajasthan and they requested the Council to consider the same for tobacco products. 7.9 The Secretary proposed that the Council could accept the report of GoM and that the suggestions made by the GoM would be looked into in detail by the Law committee and fitment committee including the track and trace method. He also stated that these committees would analyse in detail as to whether Compensation Cess should be imposed on ad valorem basis as it is now or whether 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 than....
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....Advance User Charges (AUC) from a few states and CBIC; 4. Data Archival Policy for the GST System; and 5. Implementation of facility to Generate Document Identification Number in GST Back Office for Model 2 States in compliance with the Supreme Court judgement in W.P 320 of 2022. 10.2 The Secretary informed the Council that revised revenue model of GSTN was discussed in the officers meeting and based on the feedback received with respect to clause five on "Funding for Future Capital Expenditure" it was noted that the proposed procedure for meeting capital expenditure through grant-in-aid from 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 reque....
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....ficers (CoO) on GST Audit along with Draft Model All India GST Audit Manual 12.1 The Secretary took up the agenda on Report of Committee of Officers (CoO) on GST Audit and informed that the Committee of Officers was constituted on GST Audit to I prepare a draft Model All India GST Audit Manual. The said Manual was discussed in detail In the Officer's Meeting and the suggestions made by officers from States have been incorporated in the Manual by way of an additional note circulated in the GST Council Meeting. 12.2 The Secretary stated that if all the Members agreed then the draft GST Audit Manual can be circulated for information to 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 sa....
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.... to last year. He further requested to continue the payment of Compensation Cess to States as there was a deficit of more than Rs.10,000/- crores even then because of the Covid and two continuous floods in Kerala. He stated that this issue was discussed earlier with the Hon'ble Union Finance Minister and it was very important issue as some States were facing serious financial difficulties. The Hon'ble Member also stated that Revenue Rationalisation Committee had reduced the taxes on luxury items from 28% to lower rates and that had affected their total revenue neutral position. 15.3 The Hon'ble Member from Rajasthan thanked the Hon'ble Chairperson for clearing their 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 31^st 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% a....
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....y Kumar Chaudhary 5 Chhattisgarh Shri T.S.Singh Deo 9 Delhi Shri Manish Sisodia Goa 7 Shri Mauvin Godinho 8 Gujarat Shri Kanubhai Desai Minister for Finance - 9 Haryana Shri Dushyant Chautala Deputy CM and Excise & Taxation Minister 10 Himachal Pradesh Shri Harshwardhan Chauhan Industries Minister CHAIRMAN'S INITIALS 11 Jammu and Kashmir Shri Rajeev Rai Bhatnagar Page 38 of 77 Advisor to Hon'ble Lieutenant Governor, UT of J&K Shipra MINUTE BOOK Kerala 12 Shri K. N. Balagopal Finance Minister 13 Madhya Pradesh Shri Jagdish Devda 14 Maharashtra Shri Deepak Vasant Kesarkar 15 Manipur Dr. Sapam Ranjan Singh Minister for Finance, Commercial Tax, Planning and Statistics Minister for Education and Marathi Language 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 ....
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....o FM 16 Government of India Shri Sernya Bhutia 1ST PA TO FM 17 Government of India Shri Kumar Ravikant Singh PS to MoS Finance 18 Government of India Shri Dhruv Narayan Srivastav 1st PA to MoS Finance 19 Government of India Shri Alkesh Uttam Additional PS to MoS 20 20 Government of India Shri Deepak Kapoor OSD to Revenue Secretary 21 Government of India Shri D. P. Misra OSD to Chairman, CBIC 22 Government of India Dr N Gandhi Kumar Director (State Taxes) 23 Government of India Shri Alok Kumar Additional Commissioner Government of 24 Shri Pramod Kumar Director India Page 41 of 77 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK 25 25 Government of India Ms Puneeta Bedi OSD 26 Government of India Shri Rakesh Dahiya Deputy Secretary 27 Government of India Shri Nitesh Gupta Deputy Commissioner 28 Government of India Shri Amit Samdariya Deputy Commissioner 29 Government of India Ms. Neha Yadav Deputy Commissioner 30 30 Government ....
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....Vikas Kumar Tax Assistant Andhra Pradesh 62 Shri N. Gulzar Secretary Finance(CT) Andhra Pradesh 63 Shri M. Girija Sankar Chief Commissioner(ST) Andhra Pradesh Shri K. Ravi Sankar 64 65 Arunachal Pradesh Shri Nakut Padung Commissioner(ST) Policy Superintendent (GST Cell) Assam 66 Shri Rakesh Agarwalla Principal Commissioner of State Tax Commissioner cum Bihar Dr Pratima 67 Secretary Commercial Taxes Bihar 68 Shri Arun Kumar Mishra Tax Expert Commercial Taxes CHAIRMAN'S 69 Bihar Shri Binod Kumar Jha Joint Commissioner State Tax INITIALS Page 44 of 77 Shipra Shipra MINUTE BOOK 70 Bihar Shri Naveen Kumar PS to Hon'ble Minister 70 71 Chandigarh Shri Vinay Pratap Singh 72 12 Chandigarh Ms Heena Talwar 73 73 Chhattisgarh Shri Bhim Singh 74 Chhattisgarh Shri Tarun Kiran Deputy Commissioner- cum-Excise and Taxation Commissioner Excise and Taxation Officer Commissionerof State Tax Deputy Commissioner of State Tax 75 Chhattisgarh Shri Anand Sagar ....
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.... Madhya Pradesh Assistant Commissioner, Shri Harish Jain State Tax 102 Madhya Pradesh Shri Dileep Raj Dwivedi OSD to Hon'ble Minister Maharashtra 103 Ms Shaila A Principal Secretary (Financial Reforms) Commissioner of State Maharashtra 104 Shri Rajeev Mital Tax 105 Manipur Shri Y. Indrakumar Singh Assistant Commissioner of Taxes 106 Meghalaya Ms Isawanda Laloo Commissioner of Taxes Additional Commissioner 107 Meghalaya Shri. L Khongsit of Taxes Assistant Commissioner 108 Meghalaya Shri. V R Challam of Taxes Mizoram Shri Kailiana Ralte 109 Commissioner of State Tax Additional Commissioner Mizoram Shri R. Zosiamliana 110 111 Nagaland Shri. C Lima Imsong Page 47 of 77 of State Taxes Additional Commissioner of State Taxes CHAIRMAN'S INITIALS MINUTE BOOK Shri Vishal Kumar Odisha 112 Dev Principal Secretary, Finance Department Odisha 113 Shri Nihar Ranjan Nayak Additional Commissioner of Taxes Financial Commissioner 114 Punjab Shri Vikas Partap (Taxation) 115 Pun....
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.... 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 constitution of Goods and Services Tax Tribunal Purpose of GoM As per Provisions of CGST Act, 2017 Each bench of the Tribunal is composed of one Judicial Member, one Technical Member (Centre) and one Technical Member (State) Hon'ble High Court of Madras in its order dated 20.09.2019 in WP 21147 of 2018 - Revenue Bar Association Vs. Union of India The number of expert members cannot exceed the number of judicial members on the bench and struck down the relevant provisions of the law. Hon'ble Supreme Court of India Laid down various principles with respect to appointment to Tribunals, conditions of service etc. in various other judgements. including order of Supreme Court in CA 3067 of 2004, CA No. 8588 of 2019 Group of Ministers(GoM) Draft amendments were placed before the ....
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.... 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 a taxpayer perspective one National Tribunal with coordinate benches will be the first common forum at which the dispute process converges for both the Acts and tax administrations. Earlier discussion of the GST Council: Even earlier the matter of National Vs. State Bench was discussed in the GST Council and the Council opted in favour of a National Bench with State/Coordinate Benches Persuasive value of State Benches: The Council in its 7th meeting had considered that creation of coordinate / State benches whose judgments would have persuasive value for each other and this would help settle the jurisprudence faster....
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....er 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 Technical Min. 25 years of Government Service Member (State) Officer of the State Government or AIS + Rank Higher than the First Appellate Authority of the State 25 Years of Group A Services which may be reduced by the State Government on recommendation of the Council. Page 53 of 77 INATION TAX MARKET CHAIRMAN'S INITIALS 21 CHAIRMAN'S INITIALS MINUTE BOOK Suggestions from officer's in 48th GST Council meeting NATION MATOKET . Not lower than....
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....2(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 with GSTN, based on system readiness on the portal. Meeting Change in Place of Supply of transportation of goods under Section 4(iii) 13(9) of IGST Act, 2017 [Vol 1- Pg. 139- 140] Section 13(9) of the IGST Act may be deleted to chang....
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.... 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 notification no. 27/2022-....
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....73(10) of CGST Act for the FY 2017-18 FY 2018-19 and FY 2019-20 may be extended as below, by issuance of a 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 Descript....
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....018-19 ii. Clarification on the entitlement of input tax credit where the place of supply is détermined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017 iii Clarification with regard to applicability of provisions of section 75(2) of Central Goods and Services 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 ....
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.... consultation with GSTN. based on readiness of the system >This will not only provide relief to the registered persons who could not file their returns within the time specified in section 62(2) of CGST Act in the past, but will also provide additional time in future for filing return subsequent to such assessment order. >This will also help in reducing the multiplicity of cases at appellate level. Page 61 of 77 CHAIRMAN'S INITIALS CHAIRMAN'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-filer....
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....osal: " LC has recommended that- time limit for making an application for revocation of cancellation of registration may be raised from 30 days to 90 days where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf, not below the rank of an Additional Joint Commissioner, on sufficient cause being shown, and for reasons to be recorded in writing, for a further period not exceeding 180 days timelines for filing of application for revocation 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 cons....
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....ion 23 of CGST Act, 2017 [Vol 1-Pg. 134-135] On the recommendation of the GST Council in its 48th meeting, amendment has been proposed in section 23 of CGST Act retrospectively w.c.f 01.07.2017 vide clause 131 of Finance Bill, 2023 to provide overriding effect to the section 23 over sub-section (1) of section 22 and section 24 of CGST Act. â– This was proposed mainly to overcome the requirement of mandatory registration in respect of small suppliers, with tumover less than the threshold, making intra-State supply of goods through ECOS During the post-Budget interactions with stakeholders, it has been noticed that after the proposed amendment in section 23 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....
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.... States and Union territories other than Gujarat. Proposal â– LC recommended that to correct the said inadvertent implication. rule 8 of CGST Rules may be amended with effect from 26.12.2022: â– substitution of sub-rule (4A) of rule 8, and âš« amendment of sub-rule (4B) of rule 8 amendment may be made in notification no. 27/2022-CT dated 26.12.2022 with effect from 26.12.2022 This would rectify the inadvertent omission of the mandate to undergo authentication of Aadhaar number by a person applying for registration. Agenda 4(vii): Extension of time limit under sub-section (10) of section 73 of CGST Act for FY 2017-18, 2018-19 and 2019-20 (1/2) Issue: [Vol 2-Pg 07-09] Representations have been received from some tax administrations that- â– difficulties 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 ....
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.... issuance of demand notices and passing orders in respect of cases detected during scrutiny and audit, considering the delay in scrutiny and audit process due to COVID. THANK YOU Page 66 of 77 - Shipra Document 3 Shipra MINUTE BOOK 49th GST Council Meeting Agenda item 5 Recommendations of Fitment Committee on Goods and Services ANNEXURE-5 18th February, 2023 Summary of Discussion in Officers' meeting on Recommendations of Fitment Committee Goods-Changes Recommended (5): Agenda No. 5 (Annexure-I) S.No. 1 Page No. 157 5 (Annexure-I) S. No. 2 Page No 158-160 Issue/Proposal GST rate on rab may be reduced from 18% to 5% (if sold in pre-packaged and labelled form) and NIL (if sold in loose form), in same line as is available to jaggery Past practice may be regularised on as is basis. ➤ GST rate on Pencil Sharpeners (HSN 8214) may be reduced from 18% to 12%. 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 ....
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....om Odisha and Telangana who requested to reduce the rate to NIL. 5 (Annexure-II) S No. 2 Page No. 163-164 Request is to reduce the GST on Ship/Vessel breaking from 18% to less than 10%. ITC of GST paid on ships/vessels imported for breaking is available to ship-breakers, which can be used to set off liability which arises when ship breakers sells scrap. Therefore, Fitment Committee recommended to maintain status quo. Agreed Page 68 of 77 Shipra - - - Shipra MINUTE BOOK Goods- Deferred Issue (1): Agenda No. 5 (Annexure-III) S.No 1 Page No 165-169 Issue/Proposal On the sme of Compensation cess on Utility vehicles like MUV XUV, Fitment Committee recommended to defer the issue as the issue needs to be decided after detailed study in consultation with stakeholders Status after officers meeting Agreed Services- Change recommended (2): Agenda No. Issue/Proposal 5 (Annexure-IV) S No 1 Page No. 170-171 5 (Annexure-IV) 3 No.2 Page No 171-172 A Conduct of entrance examinations by NTA and similar Central and State bodies for admission to educational institut....
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....ng the discussion in 48th meeting, on the anomalous entry for pencil sharpeners, it is requested by few members to re-consider the increase in GST rate of pencil sharpener on the ground of its use by school children Accordingly, the issue was referred to Fitment Committee. âš« Meanwhile, a domestic manufacturer represented that they have to discharge 18% on mixed supply of pencil set, which includes sharpeners (18%), pencils (12%), erasers (5%) due to 18% rate on pencil sharpener For instance, for a mixed pack costing INR 125, the price of sharpener is in the range of INR 3 to INR 5, but GST on entire pack would be 18% Fitment Committee recommendation GST rate on Pencil Sharpeners (CTH8214) may be reduced from 18% to 12% Page 70 of 77 Shipra - Shipra MINUTE BOOK Agenda 5 (Annexure-I) 3. Tracking Devices/ Data loggers for durable containers: (Page 160) Notification No. 104/94- Customs dated 16.03.1994 provides exemption from Customs Duty and IGST to imported containers of durable nature provided the same are re-exported within a period of 6 months. âš« Shippers requested for exemption for tracking devices/data loggers (H....
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....-162) ⚫ Representation received for reduction of tax rate on millet-based health mix products (predominantly consisting of millets) on par with sattu chhatua (HS 1106) and reduce tax rate on them from 18% to 5% (pre-packaged and labelled)/Nil In the instant case, the product contains not only millets or pulses but also cardamom, pepper etc, to enhance the flavour. Therefore, the product is a food preparation of flour, groats, meal etc. ⚫ UN is celebrating the International Year of the Millets in 2023 ⚫ Fitment Committee recommendations ➤ GST rate on millet-based health mix consisting at least 70% of millets may be reduced to nil if any is sold in loose form or 5%, if it is sold in pre-packaged and labelled form. >the goods may be classified under HS 1901 or 2106 depending on the substances added to the millet flour. CHAIRMAN'S INITIALS Page 71 of 77 CHAIRMAN'S INITIALS MINUTE BOOK Agenda 5 (Annexure-II) Recommendations for no change (pages-163-164) 1. Bidi wrapper leaves - Kendu/Tendu (page 163) Presently supply of tendu leaves by an agriculturist to any registered person attracts 18% GST under RCM E....
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....es provided they satisfy the specifications of engine capacity 1500cc. length 4000mm and ground clearance 170mm and also other motor vehicles covered under 524. for levy of compensation cess rate of 22%. ⚫Fitment Committee Recommendations: Deferred: the issue needs to be decided after detailed study in consultation with stakeholders Recommendations of the Fitment Committee: Services Page 72 of 77 Shipra Shipra MINUTE BOOK Agenda 5(Annexure-IV). Changes in GST rates issue clarification (page-170-172) 1. Services supplied by National Testing Agency (NTA) by way of conduct of entrance examinations for admission to educational institutions pages 170-171) •Currently, entrance examinations conducted by Government and private universities and colleges as well as by Central and State Educational Boards are exempt from GST However, entrance examinations conducted by NTA such as JEE (Mains). NEET (UG), CMAT, GPAT for admission to educational institutions are not exempt from GST as NTA is a registered society • Conduct of entrance exammations by NTA and simular Central and State bodies for admission to educational insti....
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.... CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK ANNEXURE-6 Shipra NATION TAX MARKET Laying the final report of Group of Ministers on "Capacity Based Taxation and Special Composition Scheme in certain sectors in GST" STC Background TOR 18 February 2023 ➤ As discussed in the 42nd meeting of the GST Council, a Group of Ministers (GOM), on Capacity-based Taxation on Pan Masala, Reverse Charge Mechanism in mentha oil and Special Composition Scheme on brick kilns, stone crushers etc., was constituted on 24.05.2021. SI. Name Designation & State 1 Sh. Niranjan Pujari Minister for Finance, Odisha Convener 2 Sh. Manish Sisodia Deputy Chief Minister, Delhi Member 3 Sh. Dushyant Chautala Deputy Chief Minister, Haryana Member 4 Sh. K. N. Balgopal Minister for Finance, Kerala Member 5 Sh. Jagdish Devda Minister for Finance, Madhya Pradesh Member 6 Sh. Suresh Kumar Khanna Minister for Finance, Uttar Pradesh Member 7 Sh. Subodh Unival Minister for Agriculture, Uttarakhand Member DR Ministry of Finance OM dated 24 May 2021 Terms of ....
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.... disclose make, year of production, no of tracks and capacity of machine. ⚫ Special Monthly Return: A special monthly return indicating machine-wise/shift-wise production & disclosing details like Machine disposed off, machine added, Inputs procured and utilized in quantity and value terms, Product-wise and brand-wise details of clearance in quantity and value terms, shift-wise records of reading of electricity meters and DG set meters, waste generation stock, etc.. Certification of production capacity: Production capacity and quantity in unit per pouch/container shall be duly certified by registered Chartered Engineer. ⚫ Copy of declaration in respect of production capacity submitted to other department/agency/organization (if any), etc.; ⚫ Disclosure of details of non-working/partially working machines; Page 75 of 77 CHAIRMAN'S INITIALS 까 CHAIRMAN'S INITIALS MINUTE BOOK Options for Enhancing Compliance (Contd.) If required, installation of 24*7 CCTV cameras by the manufacturers (it was however felt that this may be intrusive and be considered carefully); Prescribing a heavy penalty for runnin....