TaxTMI 
TaxTMI 
Minutes of the 52nd meeting of the GST Council held on 07th October 2023
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....the information of the Council 3. Issues recommended by the Law Committee for the consideration of the GST Council i. Alignment of provisions of the CGST Act, 2017 with the provisions of the Tribunal Reforms Act, 2021 in respect of Appointment of President and Member of the proposed GST Appellate Tribunals. ii. Seeking clarity on various issues a. Regarding taxability of personal guarantee offered by directors to the bank against the credit limits/loans being sanctioned to the company. b. Regarding taxability of corporate guarantee provided for related persons including corporate guarantee provided by holding company to its subsidiary company. iii. Providing a special procedure for condonation of delay in filing of appeals against demand orders passed until 31st March, 2023 iv. Law amendment w.r.t. ISD as recommended by the GST Council in its 50th meeting v. Clarification regarding restoration of provisionally attached property vi. Clarification on various issues related to Place of Supply vii. Agenda Note f....
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....tition Commission of India (CCI) for 1st quarter of the F.Y 2023-24 along with Performance Reports of State Level Screening Committee (SLSC), Standing Committee (SC) and Directorate General of Anti-Profiteering (DGAP). 6. Ad-hoc Exemptions Orders issued under Section 25(2) of the Customs Act, 1962 to be placed before the GST Council for information. 7. Review of revenue position under Goods and Services Tax 8. Any other agenda with the permission of the Chair Table Agenda:- Exemption from 5% IGST levy for foreign flag foreign going vessels being operated by an entity not registered under GST in India when it converts to coastal run 9. Agenda Item 9 (Addendum to Agenda Volume-II): Agenda Note for notifying supplies and class of registered person eligible for refund under IGST route. 10. General discussion with the permission of the Chair 1.3 The Secretary to the GST Council (hereinafter called 'The Secretary'), welcomed all the Hon'ble Members of the Council and participating officers to the 52nd meeting of the GST Council. He welcomed incoming Chairman of the Central Board of Indirect Taxes and Customs (....
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....onging to those locations. 2.3 The Council approved the changes suggested by the State of Kerala in para 6.19 and para 12.12 of the minutes of the 50th meeting of the GST Council. Decision: The Council adopted the Minutes of the 50th meeting of the GST Council held on 11th July, 2023 and 51st meeting of the GST Council held on 2nd August, 2023 with changes as detailed in para 2.2 above. 3. Agenda Item 2: Ratification by the GST Council of the Notifications, Circulars and Orders issued and decisions of GST Implementation Committee for the information of the Council 3.1 The Joint Secretary, GST Council Secretariat took up the next agenda pertaining to the Ratification of the Notifications, Circulars and Orders issued by the GST Council and decisions of GST Implementation Committee for the information of the Council (Page 220-242 of the Volume-I). She stated that this agenda was discussed in the officers meeting held yesterday and there was consensus on the same. She requested the Council to ratify the Notifications, Circulars and Orders issued and take note of the decisions of the GST Implementation Committee (GIC). Decision: The Council ratified the ....
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....r qualification, appointment, conditions of service, etc. 1. A person shall not be qualified for appointment as- (a)...(b)..... (i)...... iii. has been an advocate for ten years with substantial experience in litigation under indirect tax laws in the Appellate Tribunal, Central Excise and Service Tax Tribunal, State VA T Tribunals, by whatever name called, High Count or Supreme Court, (c)...... (d)..... Provided ..... Provided that a person who has not completed the age of fifty years shall not be eligible for appointment as the President or the Member. ....... 9. Notwithstanding anything contained in any judgment, order, or decree of any court or any law for the time being in force, the President of the Appellate Tribunal shall hold office for a term of four years from the date on which he enters upon his office, or until heattains the age of seventy years, whichever is earlier and shall be eligible for re-appointment for a period not exceeding two years 10. Notwithstanding anyth....
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....the final verdict of the Hon'ble Supreme Court. 4.10 The Secretary informed that as per the decision of the Council, a letter was written to the Hon'ble Supreme Court to nominate a Chairperson and a Member for the ScSC for selecting the Technical and Judicial Members. In response to the letter, Office of the Chief Justice of India pointed out that the present law for GSTAT is not aligned with the Tribunal Reforms Act, 2021. Due to this, it could be subject to challenge and the Council may reconsider the said issues. Therefore, the issue was brought before the Council. 4.11 The Hon'ble Chairperson stated that a letter had been received from Hon'ble Supreme Court with regard to issue of selecting Advocates as Members of the GSTAT. However, the Council may in future review its decision based on the judgement which would be passed by the Supreme Court. She also welcomed the suggestion of Gujarat to make the entire process online and portal-based. Decision: The Council agreed with the said recommendations of the Law Committee alongwith the proposal to make the processes of Tribunal online and portal-based. Agenda Item 3(ii): Seeking clarity on various issues ....
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....uch supply of service may be the remuneration/ consideration provided to such a person/ guarantor by the company, directly or indirectly. 4.15 He stated that the Law Committee deliberated on the issue and recommended issuing a circular to clarify the same as above. B . Regarding taxability of corporate guarantee provided for related persons including corporate guarantee provided by holding company to its subsidiary company. 4.16 The Pr. Commissioner, GST Policy Wing stated that providing corporate guarantee between the related companies, including between 'holding company' and 'subsidiary company', even without any monetary consideration, in the course of furtherance of business, is taxable supply as supply of services provided between related persons, as per Schedule I of the CGST Act 2017. In such cases of supply of services between related persons, the taxable value of the supply has to be determined as per Rule 28 of the CGST Rules, 2017 which is mainly based on the open market value of such supply or as per value of services of like kind and quality or as per Rule 30 or 31 of CGST Rules, 2017. Field formations as well as the taxpayers are finding it di....
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....no physical service of these notice/orders was made mandatory. In many cases, the common portal was not accessed by the taxpayers and hence taxpayers were not aware of the notices/ orders issued to them through the common portal. In many cases, the email ID or mobile numbers used belonged to CAs or tax practitioners. It had also resulted in losing track of orders/notices served on common portal/email. Many of the taxpayers came to know about demand orders only upon initiation of recovery proceedings under section 79 of the CGST Act, 2017 i.e., after lapse of time prescribed for filing of appeals. Many of these appeals filed beyond the specified time period are either pending with the appellate authorities or were rejected earlier for non-adherence to time period specified under Section 107(1) of the CGST Act, 2017. At the same time, the recovery books of the authorities are bulging without sufficient recovery. As the appeals are likely to be rejected even if they are filed, in view of limited power of the appellate authority to condone any delays, the pre-deposit amount iS also not being realized in the books of the government. If such appeals are allowed by condoning the delay, th....
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....mber from Goa stated that considering the various technical difficulties faced by taxpayers during initial period of GST, one-time amnesty of filing of appeal by condonation of delay for order passed till 31^st March, 2023 may be given till 31^st March, 2024. The measure will not result in loss of revenue as correct demand will be assessed after the appeal is heard and decided by the appellate authority on merits. 4.24 The Secretary clarified that the amnesty given is one-time measure and moreover, the taxpayers have to pay an additional amount of 2.5% of the disputed amount as pre- deposit in cash. He further clarified that the time period of condonation of delay for filing appeal of orders passed upto 31st March, 2023 in respect of cases pertaining to 2017-18 may seem long but many States have passed the adjudication orders as late as July 2022 or December 2022 on account of Covid. Decision: The Council agreed with the said recommendations of the Law Committee, as modified as per discussions in Officers' meeting, along with draft Notification. Agenda Item 3(iv): Law amendment w.r.t. ISD as recommended by the GST Council in its 50th meeting. 4.25 The Pr. Commission....
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....ted tax charged on invoices received by him, including the credit of central or integrated tax in respect of services subject to levy of tax under sub-section (3) or (4) of Section 9 paid by a distinct person, registered in the same State as the said lnput Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed 3. The credit of central tax shall be distributed as central tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a document containing the amount of input tax credit being distributed in such manner as maybe prescribed. Pari-materia amendments would also be required in the SGST Act. 4.28 In view of the aforesaid amendment in Section 20 of CGST Act 2017, the Law Committee also recommended that the methodology for distribution of credit may be incorporated in rule 39 of the CGST Rules 2017 as follow: 39. Procedure for distribution of input tax credit by Input Service Distributor- 1......... a. the input tax credit available for distribution in a month shall be distributed in the same month and the details thereof shall be ....
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....) of section 17 or Otherwise) and the amount of eligible input tax credit; h. the input tax credit on account of central tax, State tax, Union territory tax and integrated tax shall be distributed separately in accordance with the provisions of clause (d) and (e); i. the input tax credit on account of integrated tax shall be distributed as input tax credit of integrated tax to every recipient; j. the input tax credit on account of central tax and State tax or Union territory tax shall- i. in respect of a recipient located in the same State or Union territory in which the Input Service Distributor is located, be distributed as input tax credit of central tax and State tax or Union territory tax respectively; ii. in respect of a recipient located in a State or Union territory other than that of the Input Service Distributor, be distributed as integrated tax and the amount to be so distributed shall be equal to the aggregate of the amount of input tax credit of central tax and State tax or Union territory tax that qualifies for distribution to such recipient as referred to in clause (d) and (e); k. the Input....
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.... to a wrong recipient by the Input Service Distributor, the process specified in clause (n) of sub-rule (1) shall apply, mutatis mutandis, for reduction of credit. 3. Subject to sub-rule (2), the Input Service Distributor shall, on the basis of the Input Service Distributor credit note specified in clause (l) of sub-rule (1), issue an Input Service Distributor invoice to the recipient entitled to such credit and include the Input Service Distributor credit note and the Input Service Distributor invoice in the return in FORM GSTR-6 for the month in which such credit note and invoice was issued. Explanation. - For the purpose of this rule- i. the term "relevant period" shall be- a. if the recipients of credit have turnover in their States or Union territories i the financial year preceding the year during which credit is to be distributed the said financial year; or b. if some or all recipients of the credit do not have any turnover in their States or Union territories in the financial year preceding the year during which the credit is to be distributed, the last quarter for which details of such turnover of all the recip....
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....he words "or on expiry of a period of one year from the date of issuance of order in FORM GST DRC-22, whichever is earlier ," after the words "to that effect", to clearly provide that order issued under FORM GST DRC-22 shall cease to have effect after expiry of period of one year from the date of issuance. Amendment in FORM GST DRC-22: To insert the words "This order shall cease to have effect, on the date of issuance of order in FORM GST DRC-23 by the Commissioner, or on the expiry of a period of one year from the date of issuance of this order, whichever is earlier." 4.32 He mentioned that after these amendments, order of provisional attachment would be valid for maximum period of one year and such order shall cease to have effect after expiry of one year from the date of issuance. He also added that these recommendations of Law Committee were discussed and agreed to in the officers' meeting. However, it was also recommended in the officers' meeting that officers may be issued alerts in respect of all such provisionally attached orders where they are nearing the completion of one year so that if any action needs to be taken by the concerned officer then the same ....
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....structure (immovable property) belonging to vendor to the client/advertising company for display of their advertisement on the said hoarding/ structure. As per section 12(3)(a) of IGST Act, the place of supply of services directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work shall be the location at which the immovable property is located. Therefore, the place of supply of service provided by way of supply of sale of space on hoarding/ structure for advertising or for grant of rights to use the hoarding/ structure for advertising in this case would be the location where such hoarding/ structure is located. (ii) There may be cases where the advertising company wants to display its advertisement on hoardings/ bill boards at a specific location availing the services of a vendor. The responsibility of arranging the hoardings/ bill boards and display of advertisement on the said location lies with the vendor and during this....
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....vices not only involves providing of a physical space for server/network hardware along with air conditioning, security service, fire protection system and power supply but it also involves the supply of various components of 'Hosting and information technology (IT) infrastructure provisioning services' like network connectivity, backup facility, firewall services, and monitoring and surveillance service for ensuring continuous operations of the servers and related hardware, etc. In such cases, supply of colocation services cannot be considered as the services of supply of renting of immovable property. Therefore, the place of supply of the colocation services shall not be determined by the provisions of clause (a) of sub-section (3) of Section 12 of the IGST Act but the same shall be determined by the default place of supply provision under sub- section (2) of Section 12 of the IGST Act i.e. location of recipient of co-location service. 4.39 However, in cases where the agreement between the supplier and the recipient is restricted to providing physical space on rent along with basic infrastructure, without components of Hosting and Information Technology (IT) Infrastruc....
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....her in Foreign Trade Policy, 2023. Law Committee has therefore recommended that it may be clarified through a Circular that the condition of sub-clause (iv) of Section 2(6) of the IGST Act, 2017 will be considered to be fulfilled when the Indian exporters, undertaking exports of services, are paid the export proceeds in INR from the balances in the designated Special Vostro Account. Decision: The Council agreed with the recommendations of the Law Committee along with the proposed Circular. Agenda 3 (viii). Amendment in Central Goods and Services Tax Rules. 2017 and GST REG/PCT - FORM(s) 4.42 The Principal Commissioner, GST Policy Wing stated that the agenda pertains to few minor procedural changes to align GST REG/PCT-FORMS(s) and amendments in the CGST Rules, 2017, which have been recommended by the Law Committee. The amendments proposed are as follows: A. Incorporation of 'One Person Company' in FORM GST REG 01 i.e. Application for Registration 4.43 The registration application process for certain business types requires a selection of the 'Constitution of Business' from a dropdown in Part B of FORM GST REG-01 i.e. Application for ....
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....ssuing Order of cancellation of Registration as Tax Deductor at Source or Tax Collector at Source in FORM GST REG-08 for suo-moto cancellation of registration alone, with no separate format for self-cancellation applications. 4.47 A recommendation has been made to amend FORM GST REG-08 to specifically provide for cancellation of registration upon request by TCS/TDS taxpayers, Additionally, has been recommended to rephrase and align the cancellation reasons in FORM GST REG-08 with those in FORM GST REG-19, as per the CGST (5th Amendment) Rules, 2022, for improved clarity. D. Amendment in rule 142 (3) of the CGST Rules with respect to FORM GST DRC-05 4.48 A recommendation has been made to remove the anomaly between rule 142(3) and FORM GST DRC-05, by substitution of the words "intimation" instead of "order" in rule 142(3) with respect to FORM GST DRC-05. E. Changes in FORM GSTR-8 to include late fee 4.49 Section 47 of the CGST Act has been inter alia amended vide Finance Act, 2022 and the said amendment has been notified vide Notification No. 18/2022-Central Tax dated 28.09.2022. The amendment envisages that the late fee on delayed furnish....
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....hat constructions of bridges and roads etc. are not intended for the purpose of sale, and item 5(b) of the said Schedule primarily pertains to real estate transactions where the supply includes the value of land and is meant for sale. According to this view, there is no restriction on refund of accumulated credit for inverted duty structure concerning such services under Notification No. 15/2017- CentraI Tax (Rate) dated 28.06.2017 and the same can be clarified through a circular. 4.56 Conversely, the opposing viewpoint, held by the State of Karnataka, contends that the construction of bridges and roads, among other similar structures, shall be categorize as "civil structures" falling under item 5(b) of Schedule Il of the CGST Act, 2017. Accordingly, it is argued that the refund of accumulated credit should be denied for such services. 4.57 He further apprised the Council that during the Officer's meeting held on 06.10.2023, the majority of the States concurred with the first view. However, a few states, including Karnataka, Punjab, Haryana, Tamil Nadu, Uttar Pradesh, Kerala, and Jammu & Kashmir, held a divergent view favoring the second perspective, This situation has ne....
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....g, among various others, as held in Commissioner of Sales Tax, Uttar Pradesh, Lucknow v. Parson Tools & Plants Kanpur (1975), highlighting a para from the ruling that: 'the language of which is otherwise plain and unambiguous, the Court is not competent to supply the omission by engrafting on it or introducing in it, under the guise of interpretation, by analogy or implication, something what it thinks to be. A general principle of justice and equity. To do so, would be entrenching upon the preserves of Legislature'. 4.60 The Hon'ble Member from Karnataka stated that all notifications are placed in the Parliament and State Legislatures for approval, and any attempts to modify them through clarifications would constitute an encroachment into the legislature's domain. He also highlighted that issuing a clarification would have revenue implications for the State, though exact calculations had not been performed. He estimated a potential revenue outgo of approximately Rs 1000 crore for the State of Karnataka. He raised the issue whether the State would be compensated for this revenue loss resulting from the refund of accumulated credit as it pertains to protecte....
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....le Member from West Bengal raised concerns about those States who have already refunded the accumulated credit and have been compensated by the Centre. She suggested that the principle of 'Ejusdem generis', should be considered for better understanding the intent. She emphasized that taking this aspect into account might help avoid complications and ensure a smoother transition, 4.65 The Hon'ble Member from Kerala expressed agreement with the proposal but sought clarification regarding the contracts under consideration. Specifically, the Member inquired whether the term "prospective" referred to future contracts and agreements and not those already in existence. 4.66 In response, the Secretary clarified that the amendment should be in a manner that addresses both existing and future contracts. Regarding the query from the Hon'ble Member from West Bengal, the Secretary explained that there would be no clarification retroactively for past cases. States would retain the discretion to handle past cases as they see fit, based on their interpretation, as the amendment would be prospective. 4.67 The Hon'ble Member from Bihar requested to clarify the language u....
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....but the Fitment Committee had not recommended the same as there was no ambiguity regarding tax rate on flour preparations for the past period. The same had been discussed in the officers' meeting and no objections were raised. 5.5 The Hon'ble Member from Delhi pointed out that currently branded Atta is being charged 5% GST and the rate of GST being proposed on millets is 12%, and if the intention is to promote the use of millets, then the rate of tax should be lesser or same as that of branded atta. Joint Secretary, TRU clarified that millet flour is already at Nil if sold in other than packaged form and at 5% if sold in packaged form. She clarified that the item under discussion is preparations of millet flour and that the proposal was for such value added products only. 5.6 The Hon'ble Member from Karnataka proposed 5% rate for value added products of millets as both the Centre and States were promoting the usage of millets in the International Year of Millets. He reasoned that this will give a fillip to millet consumption. This would lead to better uptake from farmers and better prices for them. He further stated that millets are highly nutritious a....
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....oduct should be chargeable to 12%. 5.14 The Hon'ble Members from Maharashtra, Andhra Pradesh, Meghalaya, Punjab, West Bengal, Goa, Uttar Pradesh, Assam, Kerala and Odisha supported the proposal for 5% GST rate. However, the Hon'ble Member from Kerala opposed any reduction in GST rate on processed foods like cookies. 5.15 The Hon'ble Chairperson clarified that the proposal was only for raw product an as all have agreed for a rate of 5%, the proposal might be accepted for 5% for pre-package and labelled preparations of millet flour containing at least 70% millets and 0% if sold in other than pre-packaged and labelled form. Decision: The Council approved the proposal for reduction in GST rate to 0% for food preparations of millet flour in powder form, containing at least 70% millets by weight sold in other than pre-packaged and labelled form, and 5% if sold in pre-packaged and labelled form. 5.16 Joint Secretary, TRU then presented the next agenda item. She stated that the GST Council in its 50^th meeting had recommended updating the list of banks/entities eligible for availing IGST exemption on import of gold, silver or platinum in accordance with Appendix 4B ....
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.... received to clarify that concrete mixers, self-loading concrete mixers and boom pumps i.e. concrete mixers when supplied independently or mounted on a chassis supplied by the customers, would not constitute a body for a motor vehicle and would not be classified under HSN 8707 at 28%. She stated that the Fitment Committee recommended that a specific clarification may not be required in view of the fact that the entries under HS Codes and explanatory notes are clear and there is no ambiguity. Decision: The Council approved the recommendation of the Fitment Committee in this regard. 5.19 Joint Secretary, TRU then presented the next agenda item pertaining to extending the concessional rate of GST for spare parts of renewable energy devices irrespective of its end-use. She stated that currently concessional GST rate of 12% is provided for parts for manufacture of enlisted devices and not for replacements/ repairs. Fitment Committee had recommended to maintain status quo. When the issue came up for discussion in the officers' meeting, Punjab had requested for a relook at all end used based exemptions in the notification and it was decided that the Tax Research Unit would exami....
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.... and sales of aerated beverages. Fitment Committee recommended no change in rate of compensation cess on aerated beverages supplied by Unit Run Canteens and regarding the option of collecting applicable cess at Depot level for supplies by URCs, it recommended that the matter may be referred to Law Committee for examination. Decision: The Council approved the recommendations of the Fitment Committee 5.23 Joint Secretary, TRU stated that the next agenda item arose out of a Parliamentary assurance. The issue pertains to requests from some states for levy of uniform additional compensation cess on cigarettes and tobacco products. She stated that the issue was examined by the Fitment Committee and Fitment Committee recommended no change in compensation cess rates on cigarettes, bidis, smokeless tobacco products in view of the recent changes in the levy of compensation cess on such commodities from ad valorem rate to RSP linked rate and increase in National Calamity Contingent Duty (NCCD) on specified cigarettes. 5.24 The Hon'ble Member from Karnataka stated that the issue pertained to increase in taxation on tobacco products, either GST or cess, and that they preferred the ....
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....ght be revisited again. Decision: The Council agreed to maintain status quo on levy of compensation cess on cigarettes, bidis and smokeless tobacco products. 5.28 Joint Secretary, TRU informed the Council that 2 issues as mentioned in Annexure-3 were deferred for further examination. 5.29 The Hon'ble Member from Maharashtra stated that khari is not puff and is just a toasted product. It is consumed in few states like Goa, Maharashtra, Gujarat and requested to take the issue on priority. He stated that all requisite certificates from Institutes had been obtained. 5.30 The Secretary stated that in the officers' meeting he had already mentioned that both the agendas, pertaining to khari and steel scrap, may be expedited and the Council may like to direct the Fitment Committee to bring recommendations on these two issues in the next meeting. Decision: The Council directed the Fitment Committee to examine the issues pertaining to khari and steel scrap and bring the same before the Council in its next meeting along with its recommendations. 5.31 Joint Secretary, TRU informed the Council that the Hon'ble Madras High Court had directed that the authority conce....
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....ecause of the difficulties faced by the ENA manufacturers. The proposal was discussed in the officers' meeting and is now presented based on the inputs given by States. She stated that the proposal is to place before the Hon'ble Supreme Court where an appeal by the Uttar Pradesh government is pending that the GST Council has no intention to tax ENA for use in the manufacture of Alcoholic Liquors for Human Consumption and that Law Committee may be asked to carry out suitable amendments for keeping ENA for manufacture of alcoholic liquors for human consumption out of the ambit of the GST; and to notify rate of 18% for new tariff line created for ENA for Industrial use. She stated there is also a proposal to reduce the GST rate on Molasses from 28% to 5%. 5.35 The Hon'ble Member from Goa stated that the present proposal to exempt ENA is good as it will reduce the input cost for the liquor industry. Reduction of tax rate on molasses from 28% to 5% would also reduce the tax burden on the liquor industry. Therefore, states could increase the excise duty on liquor and also VAT on liquor finished product and this would help them to increase their revenue. He stated that it i....
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....uld enable the States to impose higher tax on end product. Further, Molasses is not an end product but an input for manufacture of alcoholic liquor for human consumption. The reduction of rates on molasses is also a pro-farmer measure. This step will increase liquidity with mills and enable faster clearance of cane dues to sugarcane farmers. This will also lead to reduction in cost for manufacture of cattle feed as molasses is also an ingredient in its manufacture. He stated that only alcohol for human consumption was out of the purview of GST and ENA is not alcohol meant for human consumption. Therefore, although the Council has the power to levy GST on ENA as per the order of Allahabad High Court which is buttressed by the opinion of the learned AG, the same would be kept outside the purview of GST by amending the law. He stated that the Constitution gives the Council power to levy GST on ENA, but it is for the Council to decide whether or not they want to tax it. 5.38 The Hon'ble Member from Karnataka stated that the issue was discussed extensively in the 20th meeting of the GST Council. He welcomed the gesture to keep ENA meant for production of alcoholic liquor for huma....
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....18% for new tariff line to be created on ENA for industrial use and to reduce the GST rate on molasses from 28% to 5%. 5.43 Joint Secretary, TRU then presented the agenda pertaining to Services as mentioned at Annexure-IV in the agenda Volume-I. She presented the recommendations made by the Fitment Committee for making changes in GST rates or for issuing clarifications in relation to services. 5.44 Joint Secretary, TRU informed the Council that a request had been received to notify a mechanism by which ITC flow would not be restricted in case of the said supply through electronic commerce operator (ECO) from two Companies supplying passenger transport services by AC buses. She informed that the liability to pay tax in respect of passenger transportation services has been shifted from bus operator to the ecommerce operator (ECO)w.e.f 01.01.2022. She further informed that these companies had represented that they supply services through ECO as well as directly through own platform or offline mode. However, due to notification of their service under section 9(5), they were not able to fully utilize their ITC. Accumulation of ITC was more pronounced in case of electric buses whic....
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....he supplier of input service at a rate higher than 5%, the supplier of passenger transport service by any motor vehicle would be entitled to ITC only to the extent of such amount of GST as would have been payable on the input service in the same line of business at the rate of 5%; c. a circular may be issued to clarify the scope of 'input services in the same line of business' for entities supplying passenger transport service by vehicles as above. 5.46 Joint Secretary, TRU presented the next item that pertained to clarification as to whether reimbursement of electricity charges received by the Real estate companies, malls, airport operators etc. from their lessees/occupants is exempt from GST. She stated that the Fitment Committee had recommended that whenever electricity was supplied bundled with other supplies such as renting of immovable property services, maintenance services, etc. it would be taxed as a composite supply even in cases where electricity bill was shown separately. However where electricity was being supplied by the RWAs or real estate owner as a pure agent, the same would not form a part of the value of supply. She further stated that t....
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.... malt are covered by the entry at Sl. No. 26 (i) (f) which covers job work in relation to all food and food products falling under chapters 1 to 22 of the customs tariff. Decision: The Council agreed with the said recommendation of the Fitment Committee to clarify that job work services in relation to manufacture of malt are covered by entry at S.No. 26 (i) (f) irrespective of end use of the malt. 5.51 Joint Secretary, TRU informed the Council that the next agenda item was to specify a positive list of services under Sr. No. 3 & 3A of notification No. 12/2017-CentraI Tax (Rate). She stated that this issue was discussed in earlier Council meetings and Fitment was asked to examine whether there was a need to prune the list of exempt supplies of pure services or composite supplies by way of activity in relation to functions listed in Articles 243G and 243W of the Constitution of India when supplied to Central Government, State Government or Local authority. However, during previous discussions on the same, states had opined that the list should continue as it exists. She stated that the Fitment Committee had recommended to maintain the existing list of services in 3 and 3A of No....
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....ated that this was inherited from the pre-GST era and would have to be looked into. 5.56 The Hon'ble Member from Andhra Pradesh stated that HR cost was high for local bodies and they were mainly recruiting through outsourcing. The purpose of outsourcing was to reduce the burden on the exchequer as compared to regular recruitment. He stated that the same would be defeated if the said exemption is not brought about. 5.57 The Hon'ble Member from Karnataka stated that he welcomed the proposal however he agreed with the Hon'ble Member from Andhra Pradesh. He said that the issue of exempting Urban development authorities may be examined by the Fitment committee and discussed in the Council. 5.58 The Secretary agreed to the same and reiterated that the said matter was already before the Fitment Committee and urged the Fitment Committee to expedite examining the same. 5.59 The Hon'ble Member from Andhra Pradesh stated that there are four categories namely Government, Governmental authorities, Local government and Government entities. Pure definition of local government includes only panchayats, Zilla parishads, Municipalities, etc. The Urban Development authorit....
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.... 5.66 The Hon'ble Member from Meghalaya requested that since the Fitment Committee was looking into the issue of local authorities, the matter of District Councils which are prevalent in North-east may be looked into as well. 5.67 The Hon'ble Chairperson agreed that the same should be examined by the Fitment Committee. Decision: The Council approved the recommendations of the Fitment Committee to retain the entries at S. Nos. 3 and 3A of notification No. 12/2017-CTR and for creation of a new entry to exempt five specified services supplied to Governmental authority. 5.68 Joint Secretary, TRU then presented the next agenda item which was a request to bring supplies made by Indian Railways (IR) under forward charge mechanism from the existing reverse charge mechanism. She informed the Council that presently only the transportation of goods and services provided by Railways is under forward charge and other services such as grant of catering licenses, renting of immovable properties and sale of used and old goods, etc are under reverse charge mechanism. She further informed that this was leading to blockage of ITC and has resulted in Railways accumulating sub....
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....hat the Fitment Committee had recommended that since this issue pertained to only a single party and was not a general issue impacting many states, CAMPCO may be advised to approach the Authority for Advance Ruling. She stated that thiswas discussed in the officers' meeting and concurred with by all the officers. 5.71 Joint Secretary, TRU informed that the next item was issuance of clarification on the applicability of GST on Horticulture Contracts of CPWD. She stated that the Fitment Committee had recommended to clarify that supply of pure services and composite supply of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) to CPWD are exempt from GST under Sr. No. 3 and 3A as they exist today. She further stated that the said matter was discussed in the Officers meeting and there were no objections. Decision: The Council approved the recommendation of the Fitment Committee regarding the clarification on applicability of GST on Horticultural Contracts supplied to CPWD. 5.72 Joint Secretary, TRU informed that the next agenda item was proposed amendments to notification No. 11/2017-CT(R....
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....ges below Rs. 1000/- has been withdrawn w.e.f. 18/07/2022 and the said supply is now made taxable at 12% by the notification No. 03/2022-CT (Rate) dated 13.07.2022. Currently, hotel accommodation having value of supply less than or equal to Rs. 7500 per unit per day attracts 12% whereas those having value of supply more than Rs. 7500 per unit per day attracts 18%. She further stated that there was a request for GST exemption on hostels for poor and middle- class students run by charitable trusts. She informed that Circular No. 354/17/201 8-TRU dated 12.02.2018 at its point no. I has considered the hostel accommodation at par with the hotel accommodation. She informed the Council that post 17/07/2022, hostels were not eligible to claim exemption under entry no. 14 of the notification No. 12/2017-CT(R) dated 28.06.2017. She stated that hostels were now claiming exemption applicable to renting of residential dwelling for use as residence (SI. No. 12 of notification No, 12/2017-CTR). She further informed the Council that there had been some litigation on the issue and the decision by Hon'ble Karnataka High Court that residential dwelling includes hostels has been appealed against a....
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.... Committee examined the issue and recommended that the request be not acceded to because sale of land and assignment of leasehold rights are not one and the same thing and the question of lease of land being covered under entry 5 of Schedule Ill which deals with sale Of land and building does not arise. She stated that the agenda was also discussed in the officers' meeting and no objections were raised. Decision: The Council approved the recommendation of the Fitment Committee that assignment of leasehold rights in land is not covered under Entry No. 5 of Schedule III of the CGST Act, 2017. 5.81 Joint Secretary, TRU then presented the next agenda pertaining to request to provide exemption from GST on the reassignment of leasehold rights of land where the initial lease was exempt from GST. She stated that entry at S. No.41 of notification No. 12/2017- CTR exempts long term lease of industrial plots by state government Industrial Development Corporations or Undertakings etc. but does not cover reassignment or sub-leasing of leasehold rights of land by the lessee. She further stated that the Fitment Committee did not recommend any change but recommended referring the issue o....
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....cial property on RCM basis and stated that the same was agreed to be deferred in the officers meeting as Punjab's view was not considered in the Fitment Committee and sought permission of the Council to defer the issue. Decision: The Council deferred the agenda item for further examination. 5.90 Joint Secretary, TRU then stated that 10 issues as mentioned in Annexure- VI were recommended to be deferred by the Fitment Committee further examination. Decision: The Council agreed with the recommendations. 6. Agenda Item 5: Performance Report of Competition Commission of India (CC') alonag with Performance Reports of State Level Screening Committee (St-SC). Standing Committee (SC) and Directorate General of Anti-Profiteering (DGAP) for 1st quarter of the F.Y 2023-24. 6.1 The Secretary presented the Agenda No. 5 regarding Performance Report of Competition Commission of India (CCI) 1st quarter of the F.Y 2023-24 along with the Performance Report of State Level Screening Committee (SLSC), Standing Committee (SC) and Directorate General of Anti- Profiteering (DGAP) for the information of the Council. Decision: The Council took note of the same and appro....
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....formed that the IGST settled was slightly more than what was collected. He then presented the details of Compensation Cess collected since the implementation of GST till July 2023 and the compensation released till September 2023. He presented the status of the receipt and processing of AG's certificate from the States for release of compensation. 8.2 The Hon'ble Member from Karnataka requested the Centre to expedite the process at the CAG office as well. 8.3 The Hon'ble Chairperson urged the States yet to submit the AG's certificate to expedite the process. She also assured that the process at CAG will be expedited. 8.4 The Joint Secretary, Department of Revenue then presented the data pertaining to the percentage of filing and informed the Council that the filing percentage was good and there was no concern in the same. 8.5 The Hon'ble Member from Karnataka stated that they had made a written request for a discussion on cess and surcharge collection. He further elaborated that the intent of the request was to understand the repayment schedule of the loans taken to pay compensation to states and the status of Compensation Ces....
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....ailed examination of the devolution of surplus IGST. 8.12 The Hon'ble Member from Manipur informed the Council that the growth in GST revenues for the State during April, 2023 was 35%, however due to the violent unrest in the state from 3rd May, 2023 there had been a drastic decline in the growth. He stated that the violence caused several hindrances such as closure of markets, suspension of ecommerce activities, blockage of highways, break down of internet, stoppage of construction activities, etc. He stated that those had resulted in the financial position of the State being very grim. He requested the Hon'ble Chairperson to provide financial assistance for the State. Decision : It was decided that a complete picture of the compensation cess, the likely time by which loan will be repaid and the proposal for tax/cess in lieu of compensation cess post repayment be presented to the Council. 9. Agenda Item 8: Table Agenda-Exemption from 5% IGST levy for foreign flag foreign going vessels being operated by an entity not registered under GST in India when it converts to coastal run 9.1 Joint Secretary, TRU sought permission of the Chair to introduce a Table Ag....
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.... eligible for refund under IGST route. 10.1 The Principal Commissioner, GST Policy Wing stated that the agenda was regarding amendment of Notification no 1/2023- IGST, dated 31st July, 2023 issued as per the recommendations of the 50th Council meeting to restrict IGST refund on certain evasion prone commodities such as Pan masala, Gutkha, etc. based on the report of the Group of Ministers on capacity-based taxation. He stated that in the 50th Council meeting, it was also recommended to notify amendments in section 16(3) and 16(4) of the IGST Act, 2017 made through the Finance Act, 2021 with effect from 1.10.2023. The amendments provided that the default route of refunds of unutilised input tax credit in respect of zero rated supply would be LUT mode and IGST refund would be permitted only for the class of persons or class of goods or services as may be notified by the Government. 10.2 He informed the Council that the said Notification was issued with effect from 01.10.2023 in accordance with the recommendations of Council which allowed export of all goods and services as the goods and services on supply of which IGST could be paid and refund obtained except ....
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....n: The Council agreed with the said proposal and the recommendation made in the Officers' meeting on the draft notification. 11. Agenda Item 10: General Discussion with the permission of the Chair 11.1 The Hon'ble Member from Bihar during the discussion of Agenda Item pertaining to clarification on issues related to Place of Supply raised the issue regarding Place of supply for Online services. He stated that the recent amendment in rule 46(f) of the CGST Rules, 2017 on 'Online Gaming' should be made applicable to 'other Online Services' as well. He further proposed that so far as Online Gaming' was concerned, a proper mechanism be designed so as to capture the place of residence of a user/player. He raised his concern over the place of supply in such cases where user/player of 'online games' goes out of the State and plays online games then the State to which a user/player belongs to loses the revenue while the other State gets the benefit. He therefore suggested that the mechanism should ascertain/ verify the actual permanent place of residence of the user/player. He stated that Small and underdeveloped states could be losing revenu....
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....than the worth of the casinos. He stated that demanding tax for the past period amounted to retrospective taxation and would be detrimental to the industry. He submitted that the casinos had collected tax at 18% as was the practice in the pre- GST era and paid the same and the said notices demanded tax that they had not collected- He also stated that as the State of Goa was heavily dependent on the casino and allied industries, decline in revenue from them would affect the prosperity of the State. He requested the Council to take measures to withdraw the notices issued by DGGI and stop demanding tax on past period. 11.6 The Hon'ble Member from West Bengal stated that the matter of retrospective taxation should be looked into. She stated that it had to be decided whether the industry should be made to pay what they had not collected. She further requested the Hon'ble Chairperson to allow her to bring another aspect to the Hon'ble Chairperson's notice. She pointed out that Bengal had always tried to contribute towards the growth of GST and also added that she believed that the interest of the people had always been the foremost while taking any decision in the Coun....
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....inance Minister 2 GOI Shri Pankaj Chaudhary Minister of State for Finance 3 Andhra Pradesh Shri Buggana Rajendranath Minister for Finance, Planning, Legislative Affairs, Commercial Taxes and Skill Development & Training 4 Assam Smt. Ajanta Neog Finance Minister 5 Bihar Shri Vijay Kumar Chaudhary Minister for Commercial Tax 6 Chhattisgarh Shri T.S.Singh Deo 7 Delhi Smt. Atishi Marlena Deputy Chief Minister Finance Minister 8 Goa Dr. Pramod Sawant Chief Minister/Finance Minister 6 Goa Shri Mauvin Godinho 10 Gujarat Shri Kanubhai Desai Minister for Industries, Transport, Panchayati Raj and Protocol Minister for Finance 11 Himachal Pradesh Shri Harshwardhan Chauhan 12 Jammu and Kashmir Shri Rajeev Rai Bhatnagar Industries Minister Advisor to Hon'ble Lieutenant Governor, UT of J&K 13 Karnataka Shri Krishna Byre Gowda Minister for Revenue Department 14 Kerala Shri K. N. Balagopal CHAIRMAN'S 15 Maharashtra Shri Deepak Vasant Kesarkar INITIALS Finance Minister Cabinet Minister for Ministry of Educa....
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..... Nakul, IAS PS to FM 20 20 Government of India Shri Vishnu Singh PA to FM 21 21 Government of India Shri Ankit Jalan Additional PS to FM 22 22 Government of India Shri Alkesh Uttam OSD to MoS 23 Government of India Shri Dhruv Narayan Srivastava 1ST PA to MoS 24 DoR Shri Vikas Kumar OSD (State Taxes) 25 25 DoR Ms. Mamta Yadav Assistant Secretary 26 DoR Shri Ravi Kumar Meena Assistant Secretary 27 DoR Shri Rinku Assistant Secretary 28 GST POLICY WING Shri Raghavendra Pal Singh Additional Commissioner 29 GST POLICY WING Dr. Gurbaz Sandhu 30 50 31 Additional Commissioner GST POLICY WING Shrunkhala Kangale Additional Commissioner TRU Rakesh Dahiya DS, TRU-I 32 TRU Ms Amreeta Titus DS, TRU-I CHAIRMAN'S INITIALS 33 TRU Ms. Puneeta Bedi OSD Page 47 of 117 34 GSTN MINUTE BOOK Siddharth Jain Joint Commissioner 35 GSTN Shri Naveen Agrawal OSD to CEO 36 36 TRU Shri Vikram Wanere Under Secretary, TRU-I 37 TRU Ms. Smita Roy Technical Officer, TRU-....
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....HAIRMAN'S INITIALS 70 70 MINUTE BOOK GST Council Secretariat Shri Padam Singh Inspector 71 GST Council Secretariat Shri Ashwani Sharma Inspector 12 72 GST Council Secretariat Shri Anand Singh Inspector 23 73 GST Council Secretariat Shri Karan Arora Inspector 74 GST Council Secretariat Shri Tarun Inspector 75 GST Council Secretariat Shri Pankaj Dhaka Tax Assistant 76 76 GST Council Secretariat Shri Paresh Garg Tax Assistant 77 GST Council Secretariat Shri Shyam Bihari Meena Tax Assistant Tax Assistant 78 GST Council Secretariat Shri Vikas Kumar 60 80 Andhra Pradesh Shri N. Gulzar Secretary Finance(CT) 81 Andhra Pradesh Sri JVM. Sarma Additional Commissioner (ST), Appellate Tribunal 82 28 Arunachal Pradesh Shri Lobsang Tsering Commissioner (Tax, Excise & Narcotics) 83 Arunachal Pradesh Shri Nakut Padung Superintendent (Tax, Excise & Narcotics) 84 Assam Shri Rakesh Agarwalla Principal Commissioner of State Tax 85 Assam Shri Brinchi Das PS to Hon'ble Minister 86 Bihar....
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....Vatsa Taxes 112 Jharkhand Shri Brajesh Kumar Assistant Commissioner of State Taxes 113 Karnataka Ms. C. Shikha Commissioner Commercial Tax 114 Karnataka Dr. Ravi Prasad Additional Commissioner CT 115 Kerala Shri Patil Ajit Bhagwatrao 116 Kerala Shri Abraham Renn S 117 Kerala Dr. Shyjan D 118 Madhya Pradesh Shri Lokesh Kumar Jatav 119 Madhya Pradesh Shri Manoj Kumar Choubey 120 Maharashtra 221 121 Ms Shaila A Maharashtra Shri Rajeev Kumar Mital 122 Maharashtra Commissioner, State GST Department Additional Commissioner-1, GST Department PS to Hon'ble Minister (Finance) Commissioner, Commercial Tax Additional Commissioner, Commercial Tax Principal Secretary (Financial Reforms) Commissioner SGST Shri Anil Bhosle OSD to Hon'ble Minister CHAIRMAN'S INITIALS 123 Maharashtra Shri Manojkumar Narayanwal Page 52 of 117 Deputy Commissioner ABD SINCE 1922 MINUTE BOOK 124 Manipur Ms. Mercina R. Panmei MINUTE BOOK ABD SINCE 1922 Commissioner of Taxes 125 Manipur Shri Y. Indrakum....
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....sthy S 155 Uttar Pradesh Shri Paritosh Kumar Mishra 156 Uttar Pradesh Shri Amit Pandey 157 Uttarakhand Dr. Ahmad Iqbal CHAIRMAN'S INITIALS Page 54 of 117 Commissioner, State Tax Deputy Commissioner, State Tax HQ, Lucknow PS to Honourable Minister Commissioner of State Tax ABD SINCE 1922 MINUTE BOOK 158 Uttarakhand Shri Anil Singh Additional Commissioner MINUTE BOOK 1 159 Uttarakhand Shri Anurag Mishra Joint Commissioner 160 West Bengal Dr. Manoj Pant 161 West Bengal Shri Khalid Aizaz Anwar 162 West Bengal Shri Rajib Sankar Sengupta 163 West Bengal Additional Chief Secretary, Finance Department Commissioner of State Tax Senior Joint Commissioner of Revenue Shantanu Naha OSD to Minister ABD Page 55 of 117 SINCE 1922 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Presentation on issues pertaining to GST law and procedures 52nd Meeting of GST Council 7th October 2023 Years of GST One Nation. One Tax, One Market Summary of discussions in Officers' Meeting held on 6th October 2023 P....
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....directly or indirectly, the taxable value of such supply of service may be the remuneration/ consideration provided to such a person guarantor by the company, directly or indirectly. Status during Officers Meeting Agreed Page 57 of 117 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda No 3(ii) [Vol 1- Pg. 246- 2571 Issue/Proposal â– Issue 2: Taxability of corporate guarantee provided for related persons including corporate guarantee provided by holding company to its subsidiary company â– to insert sub-rule (2) in Rule 28 of CGST Rules, 2017, providing that "Notwithstanding anything contained in sub-rule (1). the value of supply of services by a supplier to a recipient who is a related person, by way of providing corporate guarantee to any banking company or financial institution on behalf of the said recipient, shall be deemed to be one per cent of the amount of such guarantee offered, or the actual consideration, whichever is higher." â– to clarify through the Circular that after the insertion of the said sub- rule, the value of such supply of services would be g....
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....ion 20. â–ª amendment in section 20 of CGST Act, to explicitly mandate distribution of the common credit including with credit pertaining to common input services which are liable to tax on reverse charge basis. â– substitution of provisions of rule 39 of the CGST Rules by incorporating methodology for distribution of credit in rule 39. Status during Officers Meeting Agreed Agenda No Issue/Proposal Status during Officers Meeting Agreed. 3(v) [Vol 1- Pg. 268- 2721 Clarification regarding restoration of provisionally attached property â–ª an amendment in sub-rule (2) of Rule 159 of CGST Rules, 2017, to insert the words "or on expiry of a period of one year from the date of issuance of order in FORM GST DRC-22, whichever is earlier." after the words "to that effect", to clearly provide that order issued under FORM GST DRC- 22 shall cease to have effect after expiry of period of one year from the date of issuance. â–ªan amendment in FORM GST DRC-22 inserting the words "This order shall cease to have effect, on the date of issuance of order in FORM GST DRC-23 by the Commissioner....
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....ace of supply shall be determined in terms of Section 12(2) of IGST Act. â– To clarify through a Circular that in case of "co-location services": â– Co-location services are in the nature of "Hosting and information technology (IT) infrastructure provisioning services", and the said services do not merely involve providing of a physical space, but also involve the supply of various components of Hosting and information technology (IT) infrastructure provisioning services' like network connectivity. backup facility, firewall services, and monitoring and surveillance service for ensuring continuous operations of the servers and related hardware, etc. Accordingly, the place of supply of the same shall be determined by the default place of supply provision under sub-section (2) of Section 12 of the IGST Act i.c. location of recipient of co-location service. Officers Meeting Agreed Page 60 of 117 ABD SINCE 1922 MINUTE BOOK Agenda No MINUTE BOOK 3(vi) [Vol 1- Pg. 273- 282] " Issue/Proposal However, in cases where the agreement between the supplier and the recipient is restricted to pro....
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....of TCS and TDS registration- Enhancement in Form GST REG-08 format for having options for cancellation of registration against the request made by the TDS and TCS registered persons to substitute FORM GST REG-08 to provide for cancellation of registration against the request made by the TDS and TCS registered persons and to rephrase and re-align the reasons for cancellation in FORM GST REG-08 on the lines of those notified in respect of FORM GST REG-19. â– Amendment in FORM GSTR-8 to include late fee â– to make changes in FORM GSTR-08: â– By substituting new Table 7 on "Interest, late fee payable and paid" in place of existing Table 6 and Table 7 to include interest on delayed submission of returns by tax payers under section 52 of the CGST Act. â– By inserting column for late fee as well in Table 9 on Debit entries in cash ledger for TCS, interest and late fee payment. â– Amendment in rule 142 (3) of the CGST Rules with respect to FORM GST DRC- 05: â– rule 142 (3) may be amended so that words "intimation" shall be used instead of "order" with respect to FORM GST DRC-05. Status during Officers Mee....
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....er IGST route Formulation for Amendment in Notification 1/2023-IT dated 31.07.2023 recommended by the Officers in Officers' meeting held on 06.10.2023 "In exercise of the powers conferred by sub-section (4) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) (hereafter referred to as the "said Act"), the Central Government on the recommendations of the Council, hereby notifies (i) all goods or services (except the goods specified in column (3) of the TABLE below) as the class of goods or services which may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid; and (ii) all suppliers to a Special Economic Zone developer or a Special Economic Zone unit for authorised operations as the class of persons who may make supply of goods or services (except the goods specified in column (3) of the TABLE below) to the Special Economic Zone developer or the Special Economic Zone unit for authorised operations on payment of integrated tax and on which the said suppliers may claim the refund of tax so paid:" Page 63 of 117 CHAIRMAN'S INITIA....
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.... Circulars etc. MINUTE BOOK Acu Rules Notifications Circulars Nos Description Remarks [Vol 1- Pg. 220-242] UTGST Act One (01) Union Territory Tax UTGST (rate) Notification Rules issued (No. 11/2023) IGST Four (04) Act/ Integrated Tax Notifications IGST issued (No 1/2023 Rules to 4/2023) & Four (04) Integrated Tax (rate) Notifications issued (No. 11/2023 to 14/2023) To amend Notification No 01/2017- Union territory Tax (Rate) dated 28.06.2017. Notifications to implement various decisions of GST Council taken in its 50th & 51st meeting and to implement other GIC decisions: 1. Seeks to notify all goods or services which may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid. 2. Seeks to notify the provisions of the Integrated Goods and Services Tax (Amendment) Act, 2023 3. Seeks to notify the supply of online money gaming as the supply of goods on import of which, integrated tax shall be levied and collected under sub-section (1) of section 5 of the Integrated Goods and Services Ta....
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....ney gaming from a place outside India to a person in India under IGST Act " Amendment to Notification No. 1/2017-CT (rate) dated 28.06.2017 Recommendations of the Law Committee Page 66 of 117 ABD SINCE 1922 MINUTE BOOK ABD SINCE 1922 MINUTE BOOK Law Committee Recommendations for Trade facilitation and Reducing litigation Agenda 3(ii): Issuance of clarification on taxability and valuation of Personal Guarantee by Directors for companies and Corporate Guarantee by companies for related person (1/4) [Vol 1 Pg. 246 257 Issue 1: Taxability of personal guarantee offered by directors to the bank against the credit limits/loans being sanctioned to the company Clarification has been was sought regarding the taxability and valuation of the supply of personal guarantee offered by the Directors to the banks on behalf of the company. The activity of providing personal guarantee by the Directors to the banks on behalf of the company (related person), even without any monetary consideration, is taxable as services provided between related persons, as per Schedule I of the CGST Act. In cases of supplies to relat....
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....ies, even without any monetary consideration, is taxable as services provided between related persons, as per Schedule I of the CGST Act. In such cases, the taxable value of the supply is to be determined as per Rule 28 of the CGST Rules, 2017 i.e. the open market value of such supply or as per value of services of like kind and quality or as per Rule 30 or 31 of CGST Rules, 2017. However, corporate guarantees, unlike bank guarantees, are specific and peculiar to a particular corporate group or company and therefore external third-party comparisons may not be available or relatable. â–¸ Field formations as well as the taxpayers are finding it difficult to arrive at the open market value for such supply of services under Rule 28 of CGST Rules, 2017. 1 Page 68 of 117 ABD SINCE 1922 MINUTE BOOK MINUTE BOOK Agenda 3(ii): Issuance of clarification on taxability and valuation of Personal Guarantee by Directors for companies and Corporate Guarantee by companies for related person (4/4) Proposal: LC has recommended: [Vol 1-Pg. 246-257| to insert sub-rule (2) in Rule 28 of CGST Rules, 2017. providing that "Notwithst....
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.... section 107 of the said Act, against the order passed by the proper officer under section 73 or 74 of the said Act on or before the 31st day of March, 2023; or whose appeal against the such order was rejected solely on the grounds that the said appeal was not filed within the time period specified in sub-section (1) of section 107. â– The filing of appeal in such cases to be allowed subject to the condition of payment of an amount of pre-deposit of 12.5% of the tax under dispute by the said person, out of which at least 20% (i.e. 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger. â– The time limit for filing appeals under this amnesty special procedure may be kept up to 31st December 2023. Agenda 3(v): Clarification regarding restoration of provisionally attached property(1/2) Issue: [Vol 1 Pg. 268-272] Section 83(2) of CGST Act, 2017 mentions that the provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order i.c. provisional attachment order in the form of FORM GST DRC-22, there is no mention of need for issuance of any order to....
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....ation of recipient of services is available, the place of supply of such services shall be the location of recipient of services and in cases where location of recipient of services is not available in the ordinary course of business, the place of supply shall be the location of supplier of services. Page 71 of 117 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda 3(vi): Clarification on various issues related to Place of Supply(2/3) In case of services in respect of advertising: [Vol Pg 273-282] In case wherein there is supply (sale) of space or supply (sale) of rights to use the space on the hoarding/ structure (immovable property) belonging to vendor to the client/advertising company for display of their advertisement on the said hoarding/ structure, the place of supply of services provided by the vendor to the advertising company in such case shall be governed by the provisions of section 12(3)(a) of IGST Act. ✓ In case where the advertising company wants to display its advertisement on hoardings/ bill boards at a specific location availing the services of a vendor and the responsibility of arra....
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.... remittances received in Special INR Vostro account, as permitted by RBI, for the purpose of consideration of supply of services to qualify as export of services as per the provisions of sub- clause (iv) of clause (6) of section 2 of the IGST Act, 2017. Proposal: Law Committee recommended to clarify through a Circular that: the condition of sub-clause (iv) of Section 2(6) of the IGST Act, 2017 will be considered to be fulfilled when the Indian exporters, undertaking exports of services, are paid the export proceeds in INR from the balances in the designated Special Vostro Account of the correspondent bank of the partner trading country in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, as mandated by RBI's A.P. (DIR Series) Circular No.10 dated 11th July, 2022 and reiterated further in Foreign Trade Policy, 2023. Agenda 3(ix): Clarification regarding eligibility of construction of roads, bridges for inverted duty structure refund Issue: [Vol 1-Pg. 303-308] References have been received from field formations requesting for clarification regarding applicability of Notification number 15/2017-Centr....
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....ndment to section 110 of the CGST Act, 2017 ✓ to insert provision relating to eligibility of an Advocate with a standing of 10 years at the Bar with substantial experience in litigation under indirect tax laws in the Appellate Tribunal. Central Excise and Service Tax Tribunal, State VAT Tribunals, by whatever name called, High Court or Supreme Court for the appointment as judicial member Minimum age for appointment of member or president of Tribunal to be specified as 50 years; ✓ Temure of president and members to be upto a maximum age of 70 years and 67 years respectively. This would help in aligning the provisions of the CGST Act, 2017 with the provisions of the Tribunal Reforms Act, 2021. Page 74 of 117 ABD SINCE 1922 MINUTE BOOK 1 MINUTE BOOK Agenda 3(iv): Law amendment with respect to ISD as recommended by the GST Council in its 50th meeting Issue: ܀ ܀ [Vol 1-Pg. 263 2671 GST Council in its 50th meeting recommended that ISD (Input Service Distributor) procedure, as laid down in Section 20 of the CGST Act, 2017 read with rule 39 of CGST Rules, 2017 may be made mandatory prospectively for....
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....on GST portal as well. Proposal: Law Committee recommended to incorporate One Person Company' as a Constitution of Business in Part-B of FORM GST REG-01 the applicant to fill only the details of the single member or owner and to submit the application successfully on system. Page 75 of 117 ABD SINCE 1922 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda 3(viii): Amendment in CGST Rules and GST/PCT Form(s) (2/5) [Vol 1-Pg. 289-3021 Issue: Application for Enrolment as Goods and Services Tax Practitioner-Amendment in Form GST PCT-01 Rule 83(1) of the CGST Rules, 2017 stipulates certain conditions for enrolment as Goods and Services Tax practitioner some of which are not available in the notified FORM GST PCT-01 and on the portal. Hence, necessary changes mentioned below are required to be made on the portal as well as in Part-B of Form GST PCT-01 in line with the rules. Certificate of Practice (COP) is not required for CA/ICWA/CS as per the rules. â–¸ Option related to Graduate or Post Graduate in Law and Higher Auditing is not available in notified form and existing implementation â–¸ Optio....
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....he aforesaid amendment. Since, existing FORM GSTR-8 does not contain late fee table. certain changes were proposed by GSTN in the said Form. Proposal: Law Committee recommended to make changes in FORM GSTR-08: By substituting new Table 7 on "Interest, late fee payable and paid" in place of existing Table 6 and Table 7 to include interest on delayed submission of returns by tax payers under section 52 of the CGST Act. By inserting column for late fee as well in Table 9 on Debit entries in cash ledger for TCS. interest and late fee payment. ABD SINCE 1922 Agenda 3(viii): Amendment in CGST Rules and GST/PCT Form(s) (5/5) [Vol 1-Pg. 297-302| Issue: Amendment in rule 142 (3) of the CGST Rules with respect to FORM GST DRC-05 FORM GST DRC-05 uses the word intimation to denote the format in which the proper officer intimates the taxpayer regarding the conclusion of proceedings initiated against him. However, rule 142 (3) of the CGST Rules states that "...and the proper officer shall issue an order in FORM GST DRC- 05 concluding the proceedings in respect of the said notice." i.e. the word used in rule 142(3) is 'order' and n....
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....oods and Services Tax Act, 2017 (13 of 2017) (hereafter referred to as the "said Act"), the Central Government on the recommendations of the Council, hereby notifies (i) all goods or services (except the goods specified in column (3) of the TABLE below) as the class of goods or services which may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid; and (ii) all suppliers to a Special Economic Zone developer or a Special Economic Zone unit for authorised operations as the class of persons who may make supply of goods or services to the Special Economic Zone developer or the Special Economic Zone unit for authorised operations on payment of integrated tax and on which the said suppliers may claim the refund of tax so paid:" THANK YOU ABD Page 79 of 117 SINCE 1922 Years of GST One Nation One Fax, One Market CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK 52nd GST Council Meeting Agenda Item 4 Recommendations of Fitment Committee on Goods and Services 7th October, 2023 Summary of Discussion in Officers' meeting ....
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....sued that imitation zari thread or yarn made out of metallised polyester film/ plastic film falling under HS 5605 are covered by the entry for imitation zari thread or yarn attracting 5% GST rate. No refund will be permitted on polyester film (metallised) /plastic film on account of inversion. Page 82 of 117 No objection ABD SINCE 1922 MINUTE BOOK MINUTE BOOK Agenda No. 4(b) (Annexure-II) S. No. I Vol-1: Page Nos. 315- 316 4(b) (Annexure-II) S. No. 2 Vol-1 Page Nos. 316- 317 Goods-No change recommended Issue/Proposal ➤ Concrete mixers are classified under HS Code 8474 and attract 18% GST rate. Boom pumps i.c.. concrete pumps are classified under 11S Code 8413 and attract 18% GST rate. Concrete mixer lorries are classified under HS Code 8705 (SPV) and attract 18% GST rate. Body parts of motor vehicle (8707) attract 28%. Entries are clear. specific clarification may not be required. Status quo may be maintained ▸ Concessional rate of 12 % has been provided to various⚫ renewable energy devices and parts for their manufacture Concessional GST rate would not apply in cas....
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....l-1: Page Nos. 318-319 ➤ Request is for uniform additional compensation cess on cigarettes/ compensation cess on bidis/ additional compensation cess on smokeless tobacco products/ or lower compensation cess on cigarettes sticks up to 70 mm. Fitment Committee recommended to maintain status quo. No objection Page 84 of 117 ABD SINCE 1922 MINUTE BOOK MINUTE BOOK Agenda No. 4(e) (Annexure- III) S.No. 1 Vol-1: Page No. 320 Goods- Deferred Issue/Proposal Request is to clarify that khari and crème roll are covered under "similar toasted products" and attract 5% GST rate The issue was examined in 47th, 48th & 50th GST Council meetings and it was observed that further details regarding the nature of product. process of preparation is required before making any suggestions. Maharashtra suggested to get the same examined by Food Research Institutes. The issue may be deferred. Status after officers' meeting No objection Agenda No. Goods- Deferred Issue/Proposal Status after officers' meeting 4(c) (Annexure-III) S. No. 2 Vol-1 Page No 320-323 GS....
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....ssed within a period of four weeks from the date of receipt of a undertaking letter by the petitioner Agenda No. 4 (Part-II) (i) Vol-II: Page Nos 8-9 Goods-Changes Recommended Issue/Proposal a. To place before Hon'ble Supreme Court that the GST Council has no intent to subject Extra-Neutral Alcohol (ENA) for use in manufacture of alcoholic liquors for human consumption. b. To make suitable amendment in law to exclude ENA supplied for manufacture of alcoholic liquors for human consumption from the ambit of GST c. To reduce GST on Molasses from 28% to 5%. d. To notify rate of 18% for new tariff line created for 'ENA for industrial use (HS 22071012). Status after officers' meeting No objection on proposed agenda. However, for past period. JS (TRU) and committee of officers from following states will study the implication: (i) Karnataka (ii) Uttar Pradesh (iii) West Bengal (iv) Rajasthan (v) Maharashtra (vi) Madhya Pradesh (vii) Punjab (viii) Andhra Pradesh JS(TRU) will convene the meeting Page 86 of 117 ABD SINCE 1922 MINUTE BOOK MINUTE BOOK Agenda ....
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....or vehicle with operator and to limit ITC on services in the same line of business to 5%. Status after officers' meeting No objection ABD Page 87 of 117 SINCE 1922 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda No. (Annexure- 4(d) IV) S.No. 2 Vol-1: Page No. 326- 327 Services- Change recommended: Issue/Proposal Request to clarify whether GST is applicable on reimbursement of electricity charges received by the Real estate companies, malls, airport operators etc. from their lessees/occupants. It may be clarified that whenever electricity is being supplied with renting of immovable property and/or maintenance of premises etc. it forms a part of composite supply and taxes as applicable will be charged In such cases even if electricity is billed separately, the supplies will constitute a composite supply and therefore, the rate of the principal supply i.e., GST rate on renting of immovable property and/or maintenance of premise etc. would be applicable. Where real estate owner supplies electricity as pure agent, it will not form part of value of his supply. Further, w....
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....ervices- Change recommended ) Agenda No. Issue/Proposal 4(d) (Annexure-IV Request is to bring supplies made by Indian Railways under forward charge mechanism. Currently, only transport of passenger service is charged on forward charge. S.No. 6 Vol-1: Page No. 333-335 All goods and services supplied by Indian Railways may be brought under forward charge by amending Notification no 13/2017-CTR. Consequently Indian Railways may be excluded from the exemptions given to services supplied by Government to individuals, unregistered business entities or to Central, State Governments. local authorities by amending Notification no 12/2017-CTR. Status after officers' meeting No objection CHAIRMAN'S INITIALS ABD Page 89 of 117 Me SINCE 1922 CHAIRMAN'S INITIALS MINUTE BOOK Agenda No. 4 (d) (Annexure- IV) S.No. 7 Vol-1: Page No. 335-337 4(d) (Annexure- IV) S.No. 8 Vol-1: Page No. 337-338 Services- Change recommended Issue/Proposal Clarification requested by CAMPCO on entry 54(g) of 12/2017- CT(R) dated 28.06.2017 with regard to the scope of exemption for commissi....
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.... Further, an Explanation may be inserted in Sl. No. 12 of Notification No. 12/2017-CT(R) dated 28.06.2017 stating that nothing contained in this entry shall apply to: (i) accommodation services for students in student residences; and (ii) accommodation services provided by Hostels. accommodations and the like.. Camps. Paying Guest Status after officers' meeting No objection Services-No change Agenda No. 4(e) (Annexure-V) S.No I Vol-1 Page No. 340-341 4(e) (Annexure-V) SNO 2 Vol-1 Page No 341-342- Issue/Proposal Request is to apply uniform GST rate of 5% on Business Correspondent services provided in both rural/urban areas. Presently. 18% GST is applicable on the entire chain of banking services irrespective of the fact that services are being offered by the banking company or their banking correspondent. Specific exemption for services provided by BC/BE to banking companies in respect of rural area branches has been given in line with the objectives of linancial inclusion. Fitment Committee recommended to maintain status quo. Request is to bring renting of residential dwellings by registered ....
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....tus quo. Status after officers' meeting No objection Page 92 of 117 ABD SINCE 1922 MINUTE BOOK MINUTE BOOK Agenda No. 4(f) (Annexure- VI) S.No. 5 Vol-1: Page No 355-357 4(f) (Annexure-VI) S.No. 6 Vol-1 Page No 357 F F Services- Deferred Issue Issue/Proposal Request to exempt Services provided by Central Government or State Government or Governmental Authority or local authority by way of granting long term lease (exceeding 30 years) of land of industrial plots for development for infrastructure for financial business. The matter was deferred in the 43rd GST Council held on 28th May, 2021. The matter was examined in the Fitment Committee and it was recommended that the matter may he referred to the GoM on real estate for examination, as it is closely related to the issues already before the GoM. Fitment Committee recommended that the matter may be deferred. Request to clarify the nature and taxability of various supplies in relation to crypto eco- system GST Council in its 47th meeting held on 28-29 June 2022 and in its 48th meeting held on 17 December 2022, has deferred the issu....
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....ds more detailed examination. The Fitment Committee recommended that the issue may be deferred. â–¸ Request to declare Delhi Development Authority as a Local Authority for the purposes of GST. As per section 2(1)(d) of National Capital Territory of Delhi Laws (Special Provisions) Act, 2011, DDA is "a local authority" established under the Delhi Development Act 1957. Section 3(31) of General Clauses Act 1897 defines a local authority as "local authority shall mean a municipal committee, district board, body of port commissioners or other authority legally entitled to or entrusted by the Government with the control or management of a municipal or local fund. Supreme Court in the R.C Jain case (1981 AIR 951) has held DDA to be a Local Authority. During the discussions held on the issue in the Fitment Committee, it was felt that the issue needs more detailed examination and may be deferred. Status after officers' meeting No objection No objection Agenda No. 4(f) (Annexure- VI) S.No. 10 Vol:11 Page No. 15-18 4(f) (Annexure- VI) S.No. II Vol:II Page No. 18-19 Services- Deferred Issue Issue/Pr....
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.... examined MINUTE BOOK THANK YOU Goods Recommendations for making changes in GST rates/ issuing clarifications- 4 Vol. 1-Agenda hem (a) Annexure-I.pages 310 to 314 Volume II-Agenda 4 (1)-pages 8-9 | Recommendations for making no change - 6 [Vol. I. Agenda Item 4. Annexure-Il pages 315 to 319] Issues deferred for further examination 2 [Vol. 1 Agenda Item 4. Amiexure-II pages 320 to 323| Issue for information of GST Council -I (Vol. 1. Agenda liem 4. Annexure-Ill pages 314 to 313| Page 96 of 117 ABD SINCE 1922 MINUTE BOOK Total 24 issues examined MINUTE BOOK Services Recommendations for making changes in GST rates/ issuing clarifications- 10 Vol. I. Agenda Item 4. Annexure-IV pages 324 to 339| (Vol. II. Agenda Item 4 (part II)(ii): pages 10 to 151 Recommendations for making no change - 5 [Vol 1, Agenda Item 4. Annexure-V pages 340 to 350] Issues deferred for further examination 9 [Vol. I. Agenda Item 4, Annexure-VI pages 351 to 364 & Vol. II. Agenda Item 4 (ii), pages 10-19 Recommendations of the Fitment Committee: Goods Page 97 of 117 ABD SINCE 1922 CHAIRMAN'S INITIALS CHAIRMAN'S INI....
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....rate of 18% for purchase of vehicles (HSN 8703) is available only to orthopaedic physical disabled persons. Hon'ble Madras High Court in writ petition by Ms. Carunia Seelavathi (visually impaired person) passed a judgement dated 26.06.23 asking authorities to issue necessary orders for providing GST concession to the petitioner, currently available to orthopedically disabled persons. Appeal with stay application has been filed before Madurai bench, against the said judgement mainly on the grounds that decision to provide exemption is to be determined by the GST Council and is a policy decision. âš« The GST Council in its 47th Meeting deliberated on the issue and opined that the benefit/concession to Divyangjan on purchase of vehicle should be in the form of reimbursement of GST by the Department of Empowerment of Persons with Disabilities (DEPWD), considering that end use based GST rates creates distortion. âš« Fitment Committee recommendations: Fitment committee recommended to place the order of Hon'ble High Court before the Council for information and suitable recommendation. Agenda 4(a) (Annexure-I) 4. Clarification on imitat....
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.... Coastal run/coastal trade are required to file Bill of entry/IGM at the time of its conversion to coastal run and pay applicable duties on the vessel, stores and fuel. In the instant case, the Cruise ship Costa Serena will have to convert to coastal run for operating the cruises in coastal waters (Mumbai -Goa- Mumbai and Mumbai-Kochi-Lakshadweep- Mumbai) for their voyage from 02.11.2023 to 10.01.2024 âš« Further, the cruise ship operator does not intend to enter into a lease arrangement and consequently, they will be liable to pay IGST of 5% on conversion to coastal. âš« In the pre-GST regime, they were exempted from CVD levied in lieu of central excise duty. Representation Min of Ports requested that the permission may be granted to Cruise Ship Costa Serena (foreign flag) to remain and sail as a foreign-run vessel and considered as conveyance during its coastal run in India. Recommendations: The proposed operation of cruise ship Costa Serena is beyond the scope of the definition of foreign going vessel. Therefore acceding to the request is not feasible as the same would require amendment of the Act. The only option that can be consider....
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.... INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda 4(b) (Annexure-II) 3. Electric Vehicle Battery: (page 317) ⚫Lithium ion batteries attract a GST rate of 18% (S.N. 376 AA-Sch -III, Notification 1/2017-CTR), which is already lower than the 28% GST rate ( (S.N. 139, Sch -IV, Notfn 1/2017-CTR) charged on other electric accumulators/batteries falling under HSN 8507 . • Representation received: To reduce rate to 5% Fitment Committee Recommendation: Lithium ion batteries have multiple uses i.e. cellular mobile phones, portable electronics, electric vehicles etc. Status quo may be maintained. Agenda 4(b) (Annexure-II) 4. Sugar boiled Confectionary: (pages 317-18) • Sugar boiled confectionary attract GST at the rate of 12% and Sugar confectionary attract GST at the rate of 18%. Sugar boiled confectionary refers to boiled sweets which has a dedicated 8-digit HS Code 1704 90 20. . Representation received: Issue clarification regarding the scope of 'Sugar Boiled Confectionery'. ⚫Fitment Committee Recommendation: ▸ Sugar boiled confectionary is distinguishable from sugar confectionary.....
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....ages-320-323) 1. Khari, Cream Rolls [Bakery products]: (pages 320) ⚫ Currently, concessional GST rate of 5% is applicable on Rusks, toasted bread and other toasted products. ⚫ Bakery products such as Pastry, Cake. Biscuits, Communion Wafers, etc. [other than pizza bread. khakhra, plain chapatti or roti, bread, rusks, toasted bread and similar toasted products]. attract GST rate of 18% ⚫ The issue was examined in 47th, 48th & 50th GST Council Meetings and it was observed that further details regarding the nature of product, process of preparation is required before making any suggestions. Maharashtra suggested to get the same examined by Foods Research Institutes. ⚫ Representation received: Request is to clarify that Khari and crème roll are covered under "similar toasted products", and attracts 5% GST rate Fitment Committee Recommendations: Deferred for in-depth study 2. Steel Scrap (page 320-323) Agenda 4(c) (Annexure-III) Request to reduce GST rate from 18% has not been accepted by GST Council in its 47th meeting. The only issue referred to Fitment committee for deliberations is regarding levy of GST on ....
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....lying service through ECO owned one or two buses and were not in a position to take registration and meet GST compliances. âš« So far, representations against this trade facilitation measure have been received only from two bus operators, both of which are organised as companies. They have informed that as a result of their measure they are not able to fully utilize their ITC. This accumulation of ITC is more pronounced in case of electric buses which are 2-3 times costlier than ordinary buses. Recommendations of Fitment Committee âš«To arrive at a balance between the need of small operators for case of doing business and the need of large organized players to take ITC, Fitment committee recommended that companies supplying passenger transport services by a motor vehicle may be excluded from the purview of section 9(5) of CGST Act, 2017. âš« It may be clarified that input services in same line of business include transport of passengers (SAC 9965) or renting of motor vehicle with operator (SAC 9966) and not leasing of motor vehicles without operator (9973), which attracts GST at the same rate as sale of motor vehicles, that is, 28% plus com....
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....rom GST (pages 327-330) âš« A District Mineral Foundation (DMF) Trust is established by the State Government under section 9B of the MMDR Act, 1957, with an objective to work for the interest and benefit of persons and areas affected by mining related operations by regulating receipt and expenditure from the respective Mineral Development Funds created in the concerned district. âš« They provide services related to drinking water supply, environment protection, health care facilities, education, welfare of women and children etc. . âš« DMF's activities are similar to activities that are entrusted to local authority as specified in Eleventh Schedule and Twelfth Schedule of the Constitution. Recommendations of Fitment Committee It may be clarified that DMFT is a governmental authority and thus eligible for the same exemptions as available to any other Governmental Authority. Page 106 of 117 ABD SINCE 1922 MINUTE BOOK Agenda 4(d) (Annexure-IV) MINUTE BOOK 4. To clarify that job work services for processing of "Barley" into "Malted Barley" attracts GST @5% pages 330-332) ABD SINCE 1922 âš« Malt is a foo....
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.... also provides various other services such as issue of licenses for catering, renting of immovable property, sale of old and used goods etc., GST on which is payable under reverse charge basis. . Inability of Indian Railways to avail ITC on account of RCM along with other reasons such as exempt supplies has led to blockage of huge amount of ITC.(As informed by IR, Rs. 1300 crores approx. have been blocked). Recently, services by Department of Post have also been brought under forward charge on recommendations of the 47th GST Council. Recommendations of Fitment Committee . • All goods and services supplied by Indian Railways may be brought under forward charge. Indian Railways may be excluded from the exemptions given to services supplied by Government to individuals. unregistered business entities or to Central or State Governments, local authorities as services by IR will now be taxable under Forward Charge Mechanism. Agenda 4(d) (Annexure-IV) 7. Clarification on entry 54(g) of 12/2017-CT(R) dated 28.06.2017 with regard to the scope of exemption for commission agent in facilitating the sale of agricultural produce.(pages 335....
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....tion include actionable claims. Therefore, supply of actionable claims by way of lottery, betting and gambling is a supply of goods. âš« The rate for "Specified Actionable Claim" is prescribed in Sr. No.227A of Schedule IV of the goods rate notification No. 1/2017-CT (R) dated 28.06.2017. Specified Actionable Claim includes actionable claims involved in or by way of race clubs and gambling. âš« Therefore, entry at Sr. No. 34(iv) of the services rate notification No. 11/2017- CTR dated 28.06.2017 which specifies 28% GST for "services provided by a race club by way of totalizator or a license to bookmaker in such club" may be rationalized as "services provided by a race club by way of licensing a bookmaker in such club" as supply by a race club by way of a totalizator is supply of actionable claims and not services. Further entry at Sr. No. 34(v) of the services rate notification No. 11/2017- CTR dated 28.06.2017 which specifies GST rate of 28% on "gambling" may be omitted as gambling is already included under Sl. No. 227A of the goods rate schedule under "Specified Actionable Claim" Recommendations of Fitment Committee âš« It was recom....
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....g Guest accommodations and the like Agenda 4 (e)(Annexure-V): Recommendations for no change (pages 340-350) 1. To apply uniform GST rate of 5% on Business Correspondent services provided in both rural/urban areas. (pages 340-341) Presently, 18% GST is applicable on the entire chain of banking services irrespective of the fact that services are being offered by the banking company or their banking correspondent. âš« Sl. No. 39 of notification No. 12/2017- CTR dated 28.06.2017 provides a specific exemption for services provided by Banking Correspondent(BC) Banking Facilitator(BF) to banking companies in respect of rural area branches. Specific exemption for services provided by BC/BF to banking companies in respect of rural area branches has been given in line with the objectives of financial inclusion. âš« Fitment Committee examined the issue and found no merit in the request to apply uniform rate of 5% on BC/BF services provided in both rural/urban areas. Recommendations of Fitment Committee Status Quo to be maintained Page 110 of 117 ABD SINCE 1922 MINUTE BOOK MINUTE BOOK 2. Agenda 4 (e)(Annexure-V): Recommendati....
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....Committee âš« Status Quo to be maintained ABD Page 111 of 117 SINCE 1922 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda 4 (e) Annexure-V): Recommendations for no change (pages 340-350) 4. Exemption from GST on the reassignment of leasehold rights of land where the initial lease was exempt from GST (page 344) âš« It has been submitted that the members had obtained land on long-term lease for industrial purpose from various State Government Industrial Development Corporations for conducting its business operations. Such members have assigned the right in land to various parties for consideration. âš« While the initial lease is exempt from GST, if the lessor further assigns the leasehold rights in the land and collects consideration equal to the proportionate amount of lease premium for the remaining lease. the same is currently not exempt from payment of GST. âš« Fitment Committee examined the issue. Exemption from GST on the reassignment of leasehold rights of land where the initial lease was exempt from GST will encourage hoarding of industrial plots for the purpose of re-sale and defeat the obje....
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.... held that one time long term lease premium payable/paid by the Corporation to Urban Development Authority is taxable supply. • Request is to clarify the said issue. ⚫ The matter was deferred in the 43rd GSI Council held on 28th May, 2021. ⚫ The matter was examined in the Fitment Committee and it was recommended that the matter may be referred to the GoM on real estate for examination, as it is closely related to the issues already before the GoM. Recommendations of Fitment Committee The matter may be deferred. Agenda 4(1) (Annexure-VI) 2. To clarify the nature and taxability of various supplies in relation to crypto eco-system (page 357) ⚫ GST Council in its 47th meeting held on 28-29 June 2022 and in its 48th meeting held on 17 December 2022, has deferred the issues regarding the nature and taxability of various supplies in relation to the crypto eco-system. ⚫ It was felt that the issues involved in crypto ecosystem need deeper study. It was decided that Haryana and Karnataka shall study all aspects and submit a paper before the Fitment Committee in due course. Both Haryana and Karnataka expressed their ....
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.... One view is that GST is not payable on supply of FSI by municipal corporation to the registered person. since these services are in relation to "Urban planning including town planning" and "Planning of land-use and construction of buildings" listed in XIIth Schedule ⚫The other view is that supply of FSI is not an integral part of town-planning. . ⚫ During the discussions held on the issue in the Fitment Committee, it was felt that the issue needs more detailed examination. Recommendations of Fitment Committee · The matter may be deferred. Page 114 of 117 ABD SINCE 1922 MINUTE BOOK MINUTE BOOK 1 Agenda 4(Part II) (ii)-Volume -II 5. To declare Delhi Development Authority as a Local Authority for the purposes of GST. (page 10) As per section 2(1)(d) of National Capital Territory of Delhi Laws (Special Provisions) Act, 2011, DDA is "a local authority" established under the Delhi Development Act 1957. ⚫ Section 3(31) of General Clauses Act 1897 defines a local authority as "local authority" shall mean a municipal committee. district board, body of port commissioners or other authority legally entitled to o....
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....f subsidy and thus not taxable. âš« Clarification now being sought by MeitY is regarding incentive amount that is further shared by acquiring bank with other stakeholders in the digital payment ecosystem. In the Gazette Notification dated 17th December 2021. it was mentioned that 'The incentive will be shared by the acquiring banks with other stakeholders. The distribution of the incentive amongst the stakeholder will be decided by NPI in consultation with the Banks'. âš« Further. vide Gazette Notification dated 14th January 2023. it was stated that The incentive will be shared by the acquiring banks with other payment system participants and the payment system operator, in the proportion and manner decided by NPCI in consultation with the participating banks. âš« The issue was discussed in the Fitment Committee. Karnataka stated that it shall send a note on the issue and the matter may be deferred. Recommendations of Fitment Committee âš«The matter may be deferred. Agenda 4 (c) Annexure-V): 8. Whether GST is applicable on the statutory collections made by the Real Estate Regulatory Authority (RERA) in accordance with the ....