17 December 2022

GST Council’s 48th Meeting – Highlights

The 48th Meeting of the GST Council was held on 17 December 2022 under the chairpersonship of the Union Finance & Corporate Affairs Minister. Few important trade facilitation measures including important measures for streamlining compliances in GST, as recommended by the GST Council, are highlighted below.

  • Minimum threshold of tax amount for launching prosecution under GST has been recommended to be revised from INR one crore to INR two crore.
  • Compounding amount to be reduced from the present range of 50% to 150% of tax amount to the range of 25% to 100%.
  • Specified offences - obstruction or preventing any officer in discharge of his duties; deliberate tempering of material evidence; and failure to supply the information, to be decriminalised.
  • Mechanism to be prescribed for reversal of input tax credit by a registered person in the event of non-payment of tax by the supplier by a specified date and mechanism for re-availment of such credit, if the supplier pays tax subsequently.
  • Procedure to be prescribed for filing application of refund by the unregistered buyers in cases where the contract/ agreement for supply of services, is cancelled and the time period of issuance of credit note by the concerned supplier is over.
  • Scheme to facilitate unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs), to be effective from October 2023.
  • High sea sales, supply of warehoused goods before home clearance – Paras 7, 8(a) and 8(b) inserted in Schedule III of CGST Act, 2017 with effect from 1 February 2019, to be effective from 1 July 2017.
  • No Claim Bonus offered by the insurance companies to the insured is an admissible deduction for valuation of insurance services.
  • Proviso to sub-section (8) of section 12 of the IGST Act, 2017 relating to place of supply in respect of transportation of goods to a place outside India, may be omitted.
  • Provision to be made for intimation to the taxpayer, by the common portal, about the difference between liability reported in FORM GSTR-1 and in FORM GSTR-3B for a tax period, where such difference exceeds a specified amount and/ or percentage.
  • Provision to be made to restrict filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return / statement.

Tax rate changes/clarifications

  • Compensation cess of 22% applicable to motor vehicle fulfilling all four conditions, namely, it is popularly known as SUV, has engine capacity exceeding 1500 cc, length exceeding 4000 mm and a ground clearance of 170 mm or above.
  • GST is not payable where the residential dwelling is rented to a registered person if it is rented it in his/her personal capacity for use as his/her own residence and on his own account.

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