Last updated on March 1st, 2023 at 03:59 pm
49th GST Council Meeting
The 49th GST Council Meeting was held on 18th February 2023 in New Delhi under the Chairmanship of Finance Minister Nirmala Sitharaman. This meeting is being conducted within a span of three weeks from the Union Budget 2023. Soon after the 48th meeting, while addressing the media, Finance Minister mentioned that the next meeting will be held in January 2023.
Key decisions of the 48th GST Council Meeting which required amendments to the GST Act were incorporated in the Finance Bill 2023. (Key takeaways of 48th GST Council Meeting)
|Meeting||49th GST Council Meeting|
|Date||18th February 2023|
|Chairperson||Finance Minister Nirmala Sitharaman|
|Venue||Vigyan Bhavan, New Delhi|
|Attendees||Finance Ministers of all the states|
Major & recent GST updates that one must know
⇒ The new functionality of “Initiating Drop Proceeding” (Automated Drop Proceedings) for suspended GSTINs for non-filing of GST returns has been introduced.
⇒ The new button “Re-compute Interest” is introduced in Table 5.1 of GSTR-3B.
⇒ Facility to file an application for the advance ruling by unregistered persons is enabled.
⇒ Negative values will auto-populate in Table 4 of GSTR-3B which will reflect the impact of credit notes on the net off basis in Table 4(A) of GSTR 3B. Earlier the ITC reversal relating to credit notes was auto-populating n Table 4B(2) of GSTR 3B.
Key Takeaways of 49th GST Council Meeting
⊗ GST Appellate Tribunals – Recommendations of GoM on setting up GST Appellate Tribunals have been accepted with certain amendments.
⊗ GST Compensation Cess – Entire GST Compensation Cess of Rs 16,982 crores will be cleared today. The Centre shall release the payments from their funds and recoup from the future collection.
⊗ Special Composition Scheme – For certain industries, a special composition scheme will be introduced. i.e. PAN masala, Gutkha, Tobacco etc
⊗ GST Rate Rationalization
- Pencil Sharpener rate was reduced from 18% to 12%. – Notified vide CGST(Rate) Notification no. 03/2023 dated 28th Feb 2023 effective from 1st March 2023
- Raab (liquid jaggery) rate was reduced from 18% to Nil (if loose) – Notified vide CGST(Rate) Notification no. 04/2023 dated 28th Feb 2023 effective from 1st March 2023
- Raab (liquid jaggery) rate was reduced from 18% to 5% (if packaged & pre-labelled) – Notified vide CGST(Rate) Notification no. 04/2023 dated 28th Feb 2023 effective from 1st March 2023
- Data Loggers rate was reduced from 18% to 0.
⊗ Rationalization of late fees – Late Fees u/s 47 for the delay in filing of GST Annual Return in Form GSTR 9 for small taxpayers for FY 2022-23 and onwards has been rationalized.
- Taxpayers whose AATO is up to Rs 5 Crores will be Rs 50 per day(Rs 25 CGST+Rs 25 SGST)
- Taxpayers whose AATO is between Rs 5 Crores to Rs 20 Crores will be Rs 100 per day (Rs 50 CGST+Rs 50 SGST)
Subject to a maximum of 0.04% of turnover (0.02% CGST + 0.02% SGST) for taxpayers whose AATO is up to Rs 20 crores.
⊗ GST Amnesty Scheme for pending returns- For pending, GST returns amnesty schemes giving conditional waiver/reduction shall be announced
- GSTR 4 – Annual Return of Composition Taxpayers
- GSTR 9 – Annual Return of Regular Taxpayers
- GSTR 10 – Final Return
⊗ Best Judgement Assessment (Sec 62)
- The time period of furnishing return in Form GSTR 3B or GSTR 10 in response to notice u/s 62(1) was increased from 30 days to 60 days. Such a time period is extendable to a further period of 60 days.
- Amnesty scheme from best judgement assessment orders – In past cases where non-filers could not file concerned returns within 30 days but had filed up to a specified date along with interest and late fees then it will be considered as deemed withdrawn even if the appeal was filed or decided.
⊗ Applicability of RCM – GST will be applicable on an RCM basis on commercial services provided by the Court.
⊗ Application for Revocation – The time limit for making an application for revocation of cancellation of registration is increased to 90 days from 30 days. The period to file an application for revocation can be further increased by another 90 days by the Commissioner or an officer authorized by Commissioner.
⊗ Amnesty in filing application for revocation – In cases where registration was cancelled for non-filing of return and application for revocation could not be filed within the prescribed time limits. For such past cases, an amnesty scheme for filing revocation applications shall be introduced with conditions.
⊗ The following were not part of today’s meeting agenda
- GST on online gaming
- GST rate on cement
- GST rate on NUV
Note: The recommendations/decisions of the GST Council shall be effective only when notifications/circulars are issued through the Official Gazette.
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