Menu
Blog

Home / Blog

Highlights - 47th GST Council Meetings

The 47th GST council meeting was held on 28th July and 29th July 2022 in Chandigarh, wherein the council recommended the changes in the GST rates on the supply of a few goods and Services, revise the exemption list, clarified the GST rate of a few goods and Services. The council has recommended the applicability of forwarding charges in the case of GTA Services and services of the Department of Post, a few laws and procedures are also proposed to be amended. A summary of all the recommendations is provided below:

  • Council deferred proposal of levy 28% GST on online games, casinos, and horse racing:

GST Council has deferred the levy of GST @28% on online gaming, casinos, and horse racing. As there is a major concern reported in the valuation of supply for charging GST from the recipient. GST Council has sent back this matter to GoM for reconsideration till 15th July.

The GoM recommended in the matter of online gaming that GST should be levied on the total value of the consideration which should include gaming fees, entry fees, and other amounts charged from the recipient. In the matter of casinos, it is recommended that tax should be levied on the full value of coins or chips bought by the player.  

 

  • GST would be levied @18% on the items below (Effective from 18th July 2022):

Goods: LED lamps, lights, cheques whether in book form or others, printing, writing and drawing ink, blades, pencil sharpener, spoons, forks, water pumps, machines for cleaning, sorting, or grading seeds, pulses, egg, and fruits, etc.

Services: service supply by a foreman to chit fund, works contract for roads, railway, bridges, etc., and work contract supplied to the central government for historical monuments canal dams, etc.

 

  • GST would be levied @12% on the items below (Effective from 18th July 2022):

Goods: solar water heater and systems, leather of different types, maps and hydrographic, Petroleum/ Coal bed methane, E-waste, and Bio-medical waste.

Services: Hotel accommodation rent up to rupees 1000 per day, Job work in relation to manufacture of clay bricks and different type of leather, renting of truck/ goods carriage.

 

  • GST would be levied @5% on the items below (Effective from 18th July 2022):

Goods: Ostomy and Orthopedic Appliances

Services: Transport of goods and passengers by ropeways (with ITC of services).

 

  • Exemption is withdrawn from the following list of items (Effective from 18th July 2022):

    • Transport of passengers by air to and from NE states & Bagdogra other than Economical class.
    • Transportation of railway material or equipment by rail or a vessel.
    • Storage or warehousing of taxable commodities like cotton, spices, etc.
    • Services are provided by RBI, GSTN, FSSAI, SEBI, and IRDA.
    • Renting Residential Dwellings to registered persons under GST for business purposes.
    • Services are provided by the cord blood banks by way of preservation of stem cells.
    • Services provided by way of training or coaching in recreational activities to arts, culture, and sports by a person other than an individual.
  • The time period from 01.03.2020 to 28.02.2022 to be excluded from the calculation of the limitation period for filing a refund claim by an applicant under section 54 and 55 of the CGST Act, as well as for the issuance of demand/ order (by a proper officer) in respect of erroneous refunds under section 73 of CGST Act. Further, the limitation under section 73 for FY 2017-18 for issuance of an order in respect of other demands linked with the due date of annual return, is to be extended till 30th September 2023.?
  • RCM will no longer be applicable on the supply of services by Central Government, State Government, Union Territory, and local authority by way of speed post, parcel post, and another post to a business entity. The forward charge would be applicable.
  • The applicability of the reverse charge mechanism is now optional to exercise under services from Goods Transport Agency (GTA). GTA may charge GST in forwarding charge from the recipient of the services @5% or 12%.
  • Service provided by an Indian Tour operator to a foreign resident for a tour partially in India and partially outside India is to be subject to tax proportionate to the tour conducted in India for such foreign tourist subject to conditions that this concession does not exceed half of the tour duration.
  • No compulsory registration by a person supplying goods through an E-commerce Operator, if the person dealing in the intra-state supply only an aggregate turnover does not exceed the general limit prescribed under section 22 of the CGST Act, 2017 to obtain registration under GST.
  • Composite Taxpayers are allowed to make supplies in-state through E-Commerce operators subject to certain conditions.
  • Change in the formula for calculation of refund under rule 89(5) to take into account utilization of ITC on account of inputs and input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the said tax period. This would help those taxpayers who are availing ITC on input services also.
  • No discussion on the levy of GST on Virtual Digital Assets and no decision has been taken on the extension of GST Compensation to states it may be discussed in the next meeting in August.
  • To remove the hardship of technical glitches faced by composite taxpayers, GST Council has decided to extend the waiver of late fees for filing GSTR-4 by composite taxpayers till 28th July 2022 and to extend the due date for filing form CMP-08 for the first quarter of FY 2022-23 from 18th July 2022 to 31st July 2022.
  • Two more modes, UPI and IMPS, are to be introduced for payment of challan under GST.
  • Suspension of registration, which was done by the system on non-filing of a specified number of GST returns, shall be revoked once such returns would have been filed.

  • Other miscellaneous changes:

    • Nicotine Polarilex Gum attracts a GST rate of 18%.
    • All forms of mangoes (except dried sliced or fresh mangoes) shall be taxed at @12%.
    • Electric Vehicles and the selling of space for advertisement in souvenirs are eligible for the concessional rate of 5%.
    • Renting of vehicle for transportation of goods on a timely basis shall attract 18% GST and where the cost of fuel is included in the consideration charged shall attract 12% GST.
    • Reversal of input tax credit is not required for the exempted supply of duty credit scrips by the exporters.
    • Service provided by the guest anchors to TV channels as honorarium shall attract GST.
    • Assisted Reproductive Technology (ART) and In vitro fertilization (IVF) to be included in the definition of health care services.
    • Services supplied in connection with transit cargo from or to Bhutan or Nepal shall be eligible for exemption.

 

Back