1. SETTING UP OF GST TRIBUNAL-
The Council adopted the report of GoMs with certain modifications. The final draft amendments to the GST laws shall be circulated to Members for their comments.
2. RATIONALISATION & SPECIAL COMPOSITION SCHEME FOR COMMODITIES LIKE PAN MASALA, GUTKA, CHEWING TOBACCO
To plug the leakages and improve the revenue collection from the commodities like pan masala, gutkha, chewing tobacco, the Council approved the recommendations of the GoM including-
the capacity-based levy not to be prescribed;
compliance and tracking measures to be taken to plug leakages/evasions;
exports of such commodities to be allowed only against LUT with consequential refund of accumulated ITC;
compensation cess levied on such commodities to be changed from ad valorem to specific tax-based levy to boost the first stage collection of the revenue
3. CHANGES IN RATE OF GOODS
Description of goods
5 % if sold prepackaged and labeled, Nil if sold otherwise.
4. EXEMPTION ON COAL REJECTS SUPPLIED TO OR BY COAL WASHERY
Exemption from Compensation Cess has been recommended to cover both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
5. EXTENSION OF EXEMPTIONS AVAILABLE TO EDUCATIONAL INSTITUTION
It has been recommended to extend the exemption available to educational institutions and Central and State educational boards for conduct of entrance examination to any authority, board or a body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions.
6. RCM ON SERVICES SUPPLIED TO COURTS AND TRIBUNALS
It has been recommended to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.
7. MISCELLANEOUS TAXPAYER FRIENDLY MEASURES
The time limit for making an application for revocation of cancellation of registration u/s 30 of the CGST Act, 2017 r.w.r. 23 of the CGST Rules, 2017 has been increased from 30 days to 90 days.
Amendment to Section 62 of CGST Act, 2017 to extend timelines under sub-section (2) thereof and one time amnesty for past cases: As per sub-section (2) of section 62 of CGST Act, 2017, the best judgment assessment order issued under sub-section (1) of the said section is deemed to be withdrawn if the relevant return is filed within 30 days of service of the said assessment order. The Council recommended to amend section 62 so as to increase the time period for filing of return for enabling deemed withdrawal of such best judgment assessment order, from the present 30 days to 60 days, extendable by another 60 days, subject to certain conditions.
Recommendation for reduction in late fees for late filing of Annual Return i.e. GSTR-9 only is as under-
Minimum Late Fees
Maximum Late fees
Aggregate Turnover upto Rs. 5 Cr. During the F.Y.
Rs 50 per day (Rs 25 CGST + Rs 25 SGST)
0.04 per cent. of turnover in the State/UT. (0.02% CGST + 0.02% SGST)
Aggregate Turnover above Rs. 5 Cr. but upto Rs. 20 Cr. During the F.Y.
Rs 100 per day (Rs 50 CGST + Rs 50 SGST)
Aggregate Turnover above Rs. 20 Cr.
Rs 200 per day (Rs 100 CGST + Rs 100 SGST)
0.5 per cent. of turnover in the State/UT. (0.25% CGST + 0.25% SGST)
Further amnesty scheme has been recommended by the council for cases covered in point a, b & c above.
Rationalization of provision of place of supply of services of transportation of goods: Council recommended to rationalize the provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.
CA Pranay Jain is a young and aspiring Chartered Accountant. He qualified Chartered Accountancy Course in 2021 and has a well-established practice in various fields of taxation and auditing, with his core area of practice being in the field of litigation i.e., handling assessment and appeal-related matters and representing assesses before various tax departments.
He is also socially active on LinkedIn at linkedin.com/in/capranayjain
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