47th GST Council Meeting

47th GST Council Meeting

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47th GST Council Meeting

47th GST council meeting took place on two days i.e. 28th June 2022 and 29th June 2022 under the chairmanship of Finance Minister of India Smt. Nirmala Sitharaman.

The present article highlights important recommendations provided at vide the 47th GST council meeting.

GST rates change on goods and services –

Rate rationalization to remove inverted duty structure on various goods and services is tabulated hereunder –

New GST Rates for Goods

Description Old GST rates New recommended rates
Printing/ writing/ drawing ink 12% 18%
Knives with cutting blades/ paper knives/ pencil sharpeners and blades/ spoons/ forks/ ladles/ skimmers/ cake servers etc. 12% 18%
Power-driven pumps like centrifugal pumps/ submersible pumps/ deep tube-well turbine pumps/ bicycle pumps 12% 18%

Machines for sorting, cleaning, or grading seeds/ grains/ pulses.

Machines used in the milling industry.

Machines used for working of cereals etc. Pawan Chakki; wet grinder;

5% 18%
Drawing & marking out instruments 12% 18%

Machines for sorting, cleaning, or grading fruits/ eggs/ other agricultural produce.

Milking and dairy machinery.

12% 18%
LED lamps, lights & fixtures, and their metal printed circuits board 12% 18%
Solar water heater & system 5% 12%
Prepared or finished leather/ composition leather/ chamois leather 5% 12%

Notably, it is stated that a refund of accumulated input tax credit for coal and edible oils will not be allowed.

New GST Rates for Services

Description Old GST rates New recommended rates

Job work about –

·        Processing of hides, leather, and skins;

·        Manufacture of leather goods & footwear;

·        Manufacture of clay bricks.

5% 12%

Works contract –

·        Relating to the road; railways; bridges; effluent treatment plant; metro; crematorium; etc.;

·        Including sub-contracts thereof for supplied to central & state governments, local authorities for –

1.      Canals;

2.      Historical monuments;

3.      Dams;

4.      Plants for water supply;

5.      Pipelines;

6.      Educational institutions;

7.      Hospitals; etc.

12% 18%
Works contract including sub-contracts thereof supplied to central & state government, local authorities & union territories involving predominately earthwork 5% 12%
Services supplied to chit fund by foreman 12% 18%

Other changes in GST rates

Other changes in GST rates relating to goods and services are highlighted hereunder –

GOODS

Description Old GST rates New recommended rates
Cut & polished diamonds 0.25% 1.5%
Tetra Pak 12% 18%
Tar and Coke Oven Plants 5%/ 18% 18%
IGST on import of DEC tablets supplied FOC (Free of Cost) for National Filariasis Elimination Programme 5% NIL
Ostomy Appliances 12% 5%
Orthopedic appliances 12% 5%

SERVICES

Description Old GST rates New recommended rates
Transport of passengers as well as goods by ropeways 18%

5%

(with an input tax credit of services)

Renting of trucks or goods carriage wherein cost of fuel is included 18% 12%

Exemption from following goods is either withdrawn or concessional rate being rationalized –

Description Old GST rates New recommended rates
Cheque (lose/ book form) NIL 18%
Maps NIL 12%
Parts of goods of heading 8801 NIL 18%
E-waste 5% 18%
Scientific/ technical instruments supplied to public-funded research institutes 5% Applicable rate
Petroleum or coal bed methane 5% 12%

Clarification on GST rate on goods and services –

  • Electric vehicles (whether or not fitted with a battery pack) – 5% (eligible for concessional rate).
  • Nicotine Polarilex Gum – 18%.
  • All forms of mango (including mango pulp) – 12%.
  • Raw mangoes or fresh mangoes – exempt.
  • Services of transit cargo both to and from Nepal and Bhutan – are exempt.
  • GST is exempted from application fees charged for –
    • Entrance;
    • Issue of eligibility certificate for admission; or
    • Issuance of migration certificate.
  • Selling of space for advertisement in souvenirs published in form of books – 5% (eligible for concessional rates).
  • Sale of land post leveling, laying down of drainage lines, etc. – outside the purview of GST.

GST return-related important points/ discussions –

  • GST annual return filing exemption in Form GSTR-9/ GSTR-9A for the Financial Year 2021-2022 will continue for registered persons having aggregate annual total turnover up to INR 2 Crores.
  • Waiver of late fee for delay in filing of return in Form GSTR-4 for Financial Year 2021-2022 extended till 28th July 2022.
  • Waiver of late fee for delay in filing of return in Form GST CMP-08 for the 1st quarter of Financial Year 2022-2023 extended till 31st July 2022.

GST refund-related important points/ discussions –

  • To enable the registered person to avail of the input tax credit on input services also, in case of inverted duty structure, the formula prescribed under rule 89(5) will be amended.
  • The period from 1st March 2020 to 28th February 2022 is to be excluded from calculating the limitation period for filing a refund claim under sections 54 and section 55.

Important reliefs made available to e-commerce suppliers –

  • Composition dealers will be allowed to undertake intra-state supply, with prescribed conditions, via e-commerce operators.
  • Mandatory registration requirement will be waived for e-commerce operators having aggregate turnover within INR 40 Lakhs in case of goods or INR 20 Lakhs in case of services and such e-commerce operators are not undertaking inter-state taxable supply.

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CA Poonam Gandhi is a Chartered Accountant and a Lawyer. With a wide practice experience and deep understanding of different laws and taxes, she has been an independent professional writer in the field of taxation, finance and laws.