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The 49th GST council meeting was held on February 18, 2023, to discuss and make recommendations on various GST issues. The council proposed several recommendations, including GST compensation, a GST appellate tribunal, capacity-based taxation, and special composition schemes for specific sectors.
Compensation for GST:
The Government of India made a significant decision to clear the entire pending balance of GST compensation for June 2022, which amounts to Rs.16,982 Crore.
GST Appellate Tribunal:
The council adopted, with modifications, the Group of Ministers' (GoM) report on the GST Appellate Tribunal. The final draft amendments to the GST laws will be distributed to members for feedback. The chairperson has been given authority to finalise the matter.
Approval of the GoM report on capacity-based taxation and the special composition scheme in certain GST sectors:
The council approved the recommendations of the GoM on capacity based taxation and special composition scheme in certain sectors on GST. The council recommended compliance and tracking measures to be taken to plug leakages/evasions in commodities like pan masala, gutkha, and chewing tobacco.
GST rate recommendations for Goods and Services:
Sl.No | Description | From | To |
1 | Jaggery (rab) | 18% | 5% - if sold pre-packaged and labelled Nil - if sold otherwise |
2 | Pencil Sharpener | 18% | 12% |
Other changes relating to Goods and Services:
Furthermore, the council has decided to regularise payment of GST on jaggery (rab) during the previous period on "as is" basis due to genuine doubts about its classification and applicable GST rate.
The Council extended the exemption available to educational institutions and central and state educational boards for the conduct of entrance examinations to any authority, board, or body established by the central government or state government for the conduct of entrance examinations for admission to educational institutions, including the national testing agency.
The council's decisions are expected to have a positive impact on the GST regime and contribute to economic growth. The council has proposed a number of measures to plug leaks and improve revenue collection.
Measures for facilitation of trade:
The GST council has recommended that the time limit for revocation or cancellation of registration be increased from 30 days to 90 days, with the option of an additional extension of up to 180 days. Amnesty has also been proposed in cases where registration has been revoked due to non-filing of returns.
To enable the withdrawal of best judgment assessment orders, the time period for filing relevant returns has been increased from 30 days to 60 days, with an option for a further extension of up to 60 days, subject to certain conditions. An amnesty scheme has also been proposed for conditional deemed withdrawal of assessment orders in past cases.
The council has recommended rationalizing the late fee for delayed filing of annual returns in Form GSTR-9 for registered persons with an aggregate turnover of up to Rs. 20 crores, with the late fee being reduced to Rs 50 per day for those with a turnover of up to Rs. 5 crores and Rs 100 per day for those with a turnover of more than Rs. 5 crores and up to Rs. 20 crores.
Amnesty schemes with conditional waiver or reduction of late fees have also been proposed for pending returns in Form GSTR-4, Form GSTR-9, and Form GSTR-10.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
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