Below given is the Gist of recommendations made in 50th GST Council Meeting held yesterday:
1. GST rate related changes
- GST shall be reduced to 5% on uncooked/ unfried snack pellets, imitation zari thread or yarn, LD slag, fish soluble paste, etc.;
- Supply of F&B in cinema halls individually shall be taxable @5%. If price clubbed with cinema tickets, then same rate of tax shall be applicable as for sale of tickets;
- 28% GST shall be applicable on full value of bets placed in online gaming, casinos and horse racing. It shall be taxable as actionable claims;
- 22% cess under entry 52B of NN 1/2017-Cess shall be applicable on all vehicles exceeding engine capacity 1500 CC, length exceeding 4000 mm and ground clearance exceeding 170 mm
2. Clarifications to be issued
- Services provided by director to company in personal capacity shall not be covered under RCM. RCM shall be applicable only on services provided as director;
- Relaxations given for filing of GSTR-9 and 9C for FY 2021-22 shall be continued for FY 2022-23;
- In a step to discourage cross charge for distribution of common ITC, changes would be made in GST law to make the ISD mechanism mandatory. However, it shall be applicable prospectively. For the past period, issues related to cross charges shall be clarified through circular;
- E-invoice shall also be issued for B2G supplies i.e. supplies made to Government departments;
- No GST chargeable and no ITC reversible on replacement of parts under warranty and repair services provided during warranty period without any consideration;
- Refund of unutilized ITC shall be restricted to ITC appearing in GSTR-2B;
- Name and full address of recipient not required for B2C supplies made through E-Commerce Operator. Only name of State would suffice;
- Relaxation provided for FY 2017-18 and FY 2018-19 for mismatch in ITC as per GSTR-2A and GSTR-3B shall be extended for FY 2019-20, FY 2020-21 and FY 2021-22 (till 31-12-2021);
- Amnesty scheme for revocation of cancelled registration and filing of certain GST returns which was valid till 30-06-2023 shall now be extended till 31-08-2023;
- OIDAR service providers to provide details of services provided to registered taxpayers in India in order to track payment of tax under RCM.
3. Other changes
- Goods Transportation Agencies (GTAs) shall not be required to file declaration every year unless there is change in mechanism from forward charge to RCM. Declarations can be filed between 01 January to 31 March of preceding FY.
CA Jai Prakash
Team GST Podcast
