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Authors: Relfi Paul | Published on: 13-Jun-2022
The 47th GST Council met under the chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Chandigarh on 28th and 29th of June, 2022. The meeting was attended by Union Minister of State for Finance, besides Finance Ministers of States & officers of Central, States & UTs. The GST Council has proposed an array of significant reforms and improvements in relation to GST rates on supply of goods and services, as well as GST law and procedure. The recommendations pertaining to GST rate changes shall be made effective from July 18, 2022, while those pertaining to GST law and procedure, shall be implemented from January 01, 2023.
The GST Council has inter-alia made the following recommendations including changes in law and procedure and GST rates:
Important changes in law and procedure
GSTR-3B amendments to be allowed: GST Council allowed amendments in GSTR-3B (monthly return). Further, it permitted auto-population of most details in Form GSTR-3B and annual returns in Form GSTR-9 for better compliance and ease in compliance. The Council was clear that the new GST return system would be withdrawn as it is no longer relevant. A proposal for comprehensive alterations in GSTR-3B will be placed before the public for seeking input.
GSTR-9 to continue with some relaxations: GSTR-9 and GSTR-9A continue to not be applicable to those with threshold turnover below Rs.2 crore for FY 2021-22. The limitation under Section 73 of the CGST Act for FY 2017-18 for issuance of orders relating to demands linked with the due date of annual return, is extended till 30th September 2023.
Relief to e-commerce suppliers: The Council allowed the e-commerce suppliers to register under the composition scheme for intrastate supplies easing their registration hassles and for reducing tax outgo. It will be implemented on 1st Jan 2023 once the IT system is ready.
Deadline extensions to composition taxpayers: GSTR-4 for FY 2021-22 to get a waiver of late fee for filing up to 28th July 2022 as against earlier extension of up to 30th June 2022. Also CMP-08 deadline for Apr-Jun 2022 (Q1 of FY 2022-23) to get an extension up to 30th July 2022 from 18th July 2022.
Changes in rates on Goods & Services
A. Rate rationalization to remove inverted duty structure
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S. No. |
Description |
From |
To |
|
GOODS |
|||
|
1 |
Printing, writing or drawing ink |
12% |
18% |
|
2 |
Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc. |
12% |
18% |
|
3 |
Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps |
12% |
18% |
|
4 |
Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc. Pawan Chakki that is Air Based Atta Chakki, Wet grinder; |
5% |
18% |
|
5 |
Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery |
12% |
18% |
|
6 |
LED Lamps, lights and fixture, their metal printed circuits board; |
12% |
18% |
|
7 |
Drawing and marking out instruments |
12% |
18% |
|
8 |
Solar Water Heater and system; |
5% |
12% |
|
9 |
Prepared/finished leather/chamois leather / composition leathers; |
5% |
12% |
|
10 |
Refund of accumulated ITC not to be allowed on flowing goods: |
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|
|
Services |
||
|
11 |
Services supplied by foreman to chit fund |
12% |
18% |
|
12 |
Job work in relation to processing of hides, skins and leather |
5% |
12% |
|
|
Services |
||
|
13 |
Job work in relation to manufacture of leather goods and footwear |
5% |
12% |
|
14 |
Job work in relation to manufacture of clay bricks |
5% |
12% |
|
15 |
Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. |
12% |
18% |
|
16 |
Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof |
12% |
18% |
|
17 |
Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof |
5% |
12% |
B. Other changes
Reference
Gulati Institute of Finance and Taxation