Goods and Services Tax

GST Council recommends several measures for streamlining compliances in GST

11.07.2023

The 50th meeting of the Goods and Services Tax (GST) Council was held, under the chairpersonship of the Union Finance and Corporate Affairs Minister.GST Council recommends notification of GST Appellate Tribunal by the Centre with effect from 1st August, 2023. The Council has recommended that, the relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23. Further, for easing compliance burden on smaller taxpayers, exemption from filing of annual return (in FORM GSTR-9/9A) for taxpayers having aggregate annual turnover upto two crore rupees, to be continued for FY 2022-23 also.It has been decided to exempt IGST on Dinutuximab (Quarziba) medicine, when imported for personal use.

GST Council recommends Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value. As a trade friendly measure, it has been decided that, Goods Transport Agency (GTAs) will not be required to file declaration for paying GST under forward charge every year. If they have exercised this option for a particular financial year, they shall be deemed to have exercised it for the next and future financial years unless they file a declaration that they want to revert to reverse charge mechanism (RCM).It has also been decided that the last date of exercising the option by GTAs to pay GST under forward charge shall be 31st March of preceding Financial Year instead of 15th March. 1st January of preceding Financial Year shall be the start date for exercise of option.

It has been decided to clarify that services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company or body corporate are not taxable under RCM. Only those services supplied by a director of company or body corporate, which are supplied by him as or in the capacity of director of that company or body corporate shall be taxable under RCM in the hands of the company or body corporate under notification No. 13/2017-CTR (Sl. No. 6) dated 28th June, 2017.It has been decided to clarify that supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of the cinema exhibition service. Where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.

The Council has recommended insertion of Rule 163 in CGST Rules, 2017 to provide for manner and conditions of consent-based sharing of information of registered persons available on the common portal with other systems. The Council has recommended insertion of a clause (ca) in sub-section (1) of Section 10 of the IGST Act, 2017 to clarify the place of supply in respect of supply of goods to unregistered persons.The GST Council has recommended to form a State level coordination Committee comprising of GST officers from both State and Central GST administrations for knowledge sharing on GST matters and coordinated efforts towards administrative and preventive measures.

Tags : Recommendations Meeting GST Council

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