The 47th GST Council Meeting headed by our Finance Minister was held at Chandigarh on 28th & 29th June, 2022. Accordingly, many key decisions were taken from the council ranging from filing of GST Returns to changes in GST Rates. These recommendations shall come into effect from 18th July, 2022.
Highlights of 47th GST Council Meeting
New composition scheme for e-commerce suppliers
The online sellers or e-commerce suppliers with an annual turnover of Rs. 40 lacs or Rs. 20 lacs (special category States) will be exempt from mandatory registration. In addition to this, the person must not be making any inter-State taxable supply. Further, this measure will come into effect from January 1, 2023.
Exemption from filing of GSTR-9/9A
The taxpayers having Annual Aggregate Turnover up to Rs. 2 crores are exempt from the filing GST annual return in Form GSTR-9/9A for the Financial Year 2021-22. Thereby, reducing the burden of compliances on GST-registered persons.
Waiver of late fees on GSTR-4
In addition to the above, the GST Council through 47th GST Council Meeting has recommend to extend the waiver of late fee for delay in filing of GSTR-4 for the FY 2021-22. Consequently, the taxpayers can not file their GSTR-4 till 28th July, 2022. However, please note that this waiver is for the period 1st May, 2022 to 30th June, 2022. Further, there is an extension in the due date for filing of Form GST CMP-08 of FY 2022-23 from 18th July, 2022 to 31st July, 2022.
Auto-population of details in GSTR-3B
The GST Council has permitted the auto-population of most details in Form GSTR-3B. Therefore, making the GST Return filing process easy as well as seamless.
GST Rate Changes recommended by GST Council on Goods
Apart from the recommendations wrt GST Returns, the 47th GST Council Meeting has also recommend to make changes in GST rates of the goods as well as services. The changes in GST rates of the goods are as follows:
Description | Old Rate | New Rate |
Cut and Polished diamonds | 0.25% | 1.5% |
Solar Water Heater and system; | 5% | 12% |
Prepared/finished leather/chamois leather / composition leathers | 5% | 12% |
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% |
Petroleum/ Coal bed methane | 5% | 12% |
Scientific and technical instruments supplied to public funded research institutes | 5% | Applicable rate |
E-waste | 5% | 18% |
Tar (whether from coal, coal gasification plants, producer Gas plants and Coke Oven Plants | 5%/18% | 18% |
Drawing and marking out instruments | 12% | 18% |
Printing, writing or drawing ink | 12% | 18% |
Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake servers etc | 12% | 18% |
Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps | 12% | 18% |
Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery | 12% | 18% |
LED Lamps, lights and fixture, their metal printed circuits board; | 12% | 18% |
Tetra Pak (Aseptic Packaging Paper) | 12% | 18% |
Additionally, there will be no refund of accumulated ITC on edible oils and coal.
Decrease in GST Rates
Further, apart from the hiking in the GST rates of goods, there are certain wherein the council has recommend to decrease the GST rates. These are as follows:
Description | Old Rate | New Rate |
Ostomy Appliances | 12% | 5% |
Orthopaedic appliance- Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens | 12% | 5% |
IGST on import of Diethylcarbamazine (DEC) tablets supplied free of cost for National Filariasis Elimination Programme | 5% | Nil |
IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces. | Applicable rate | Nil |
GST rate changes on services recommended by GST Council
In addition to the GST rate changes in goods, the GST council through 47th GST Council Meeting has also made changes in GST rates of services. These are as follows:
Description | Old Rate | New Rate |
Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed | Nil | 12% |
Cheques, lose or in book form | Nil | 18% |
Parts of goods of heading 8801 | Nil | 18% |
Job work in relation to processing of hides, skins and leather | 5% | 12% |
Job work in relation to manufacture of leather goods and footwear | 5% | 12% |
Job work in relation to manufacture of clay bricks | 5% | 12% |
Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof | 5% | 12% |
Services supplied by foreman to chit fund | 12% | 18% |
Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. | 12% | 18% |
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% |
Recommendations on GST on casinos, race course and online gambling
Earlier there were reports that there could be a 28% GST on casinos, race course and online gambling. Thereby, it may be treated at par with gambling. However, the GST Council has not yet taken any decision on charging of GST @28% on these aforesaid activities.
Also Read: Penalty Under GST Act Detailed Guide By TaxHelpdesk
Withdrawal of certain exemptions
The GST Council has recommend to bring certain food items under GST such as grains, pre-packed, pre-labeled curd, lassi, and buttermilk. Thereby, these food items will not be exempt from GST.
Furthermore, the GST Council has recommend to remove exemptions from the following services:
– Transportation by rail or a vessel of railway equipment and material.
– Storage or warehousing of commodities that attract tax (nuts, spices, copra, jaggery, cotton, etc.)
– Fumigation in a warehouse of agricultural produce.
– Services by RBI, IRDA, SEBI, FSSAI,
– GSTN.
– Renting of a residential dwelling to business entities (registered persons)
– Services by the cord blood banks by way of preservation of stem cells
– Common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12% to allow them ITC
– Hotel accommodation priced up to Rs. 1000/day shall be taxed at 12%
– Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital shall be taxed to the extent of the amount charged for the room at 5% without ITC.
– Tax exemption on training or coaching in recreational activities relating to arts or culture, or sports is being restricted to such services when supplied by an individual
Also Read: Know Whether You Can Claim Input Tax Credit On Food?
Services on which exemption is available
The Council recommends the exemptions on the following services:
– Services wrt transit cargo both to and from Nepal and Bhutan
– Services in form of Assisted Reproductive Technology (ART)/ In vitro fertilization (IVF). Further, these are declared as “health care services”.
– Sale of land after leveling, laying down of drainage lines etc.
Also Read: Know About Late Fees And Interest On GST Returns
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