GST Council 47th Meeting

GST Council Press Release 47th Meeting

The GST Council has inter-alia made the following recommendations relating to changes in GST rateson supply of goods and services and changes related to GST law and procedure:

I. Recommendations relating to GST rates on goods and services

Rate Rationalization to remove inverted duty structure [Approval of recommendations made by GoM on rate rationalization]

Some of the key items:

-- Printing, writing or drawing ink changed from 12% to 18%

-- Power driven pumps primarily designed for handling watersuch as centrifugal pumps, deep tube-well turbine pumps,submersible pumps; Bicycle pumps changed  from 12% to 18%

-- LED Lamps, lights and fixture, their metal printed circuitsboard changed from 12% to 18%

-- Works contract supplied to central and state governments, localauthorities for historical monuments, canals, dams, pipelines,plants for water supply, educational institutions, hospitals etc. &sub-contractor thereof from 12% to 18%

Withdrawal of exemptions

[Approval of recommendations made by GoM on raterationalization]

1. Hitherto, GST was exempted on specified food items, grains etc when not branded, or right onthe brand has been foregone. It has been recommended to revise the scope of exemption to exclude fromit prepackaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk.

2. Exemption from GST will be withdrawn on some goods.

3. The exemption in form of a concessional rate of GST is being rationalized.

4. Exemption on certain Services are being rationalized

The rate changes recommended by the 47 GST Council will be made effective from 18-July-2022.

Further, the GST Council has inter-alia made the following recommendations relating to GST law and procedure:

Measures for Trade facilitation

1. In-principal approval for relaxation in the provisions for suppliers making supplies through E-Commerce Operators (ECOs)

2. Waiver of requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through ECOs, subject to certain conditions

3. Amendment in formula prescribed in sub-rule (5) of rule 89 of CGST Rules, 2017 for calculation of refund of unutilized Input Tax Credit on account of inverted rated structure

4. Retrospective amendment in section 50(3) of CGST Act, with effect from 01.07.2017,toprovide that interest will be payable on the wrongly availed ITC only when the same is utilized;

5. Amendment in sub-section (10) of section 49 of CGST Act to provide for transfer of balance in electronic cash ledger of a registered person to electronic cash ledger of CGST and IGST of a distinct person.

6. The rules providing for the manner of calculation of interest under section 50 of CGST Act have also been recommended for more clarity. This will remove ambiguities regarding manner of calculation of interest and will also provide for transfer of balance in CGST and IGST cash ledgers between distinct persons, thereby improving liquidity and cash flows of such taxpayers.

7. Waiver of late fee for delay in filing FORM GSTR-4 for FY 2021-22 and extension of due date for filing FORM GST CMP-08 for Q1 of FY 2022-23