Key Highlights of the 49th GST Council Meeting

Today, the 49th meeting of the GST Council took place with a focus on a range of topics pertaining to the GST. During the meeting, the Council put forth several noteworthy suggestions, encompassing areas such as GST compensation, the GST Appellate Tribunal, Capacity-based taxation, Amnesty Scheme for Pending Returns and Rationalisation of Late fee for Annual Return.

Key Highlights of the 49th GST Council Meeting are as follows:

• GST Compensation : The Government of India has decided to clear the entire pending balance of GST compensation amounting to Rs. 16,982 crore for June 2022. This will clear all provisionally admissible compensation due for the past five years as per the GST (Compensation to States) Act 2017.

• GST Appellate Tribunal : Council has approved the recommendations of the Group of Ministers on the establishment of GST Appellate Tribunals, but with some amendments.

• Changes in GST rates :

Further, the exemption benefit for coal rejects will be extended to coal washery with no input tax credit.

Also, the exemption available to educational institutions for entrance exams will be extended to any authority set up by the Central or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions.

And, It has also been decided to extend the exemption from paying GST through the reverse charge mechanism (RCM) to Courts and Tribunals for taxable services provided by them, such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers, etc.

• Rationalisation of Late fee for Annual Return : The GST Council has recommended a rationalization of the late fee for delayed filing of the annual return in FORM GSTR-9 for FY 2022-23 onwards : 

• Amnesty Scheme for Pending Returns : The Council has proposed an amnesty scheme for taxpayers with pending returns in FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10, which includes a conditional waiver or reduction of late fees.

• Best judgment assessment u/s 62 : The GST Council has recommended to amend section 62 of the CGST Act to increase the time period for filing returns for deemed withdrawal of best judgment assessment orders from 30 to 60 days, extendable by another 60 days. Additionally, the Council has proposed an amnesty scheme for conditional deemed withdrawal of assessment orders in past cases where returns could not be filed within 30 days, but have been filed with interest and late fee up to a specified date, regardless of whether an appeal has been filed or decided.

• Revocation of cancellation of registration u/s 30 : The GST Council has recommended increasing the time limit for making an application for revocation of cancellation of registration from 30 days to 90 days, which may be extended by the Commissioner for a further period of up to 180 days. Additionally, the Council has proposed a one-time amnesty for past cases of cancellation due to non-filing of returns, allowing affected persons to file an application for revocation of cancellation of registration by a specified date, subject to certain conditions.

• Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST : The Council has approved the recommendations of the Group of Ministers (GoM) on Capacity Based Taxation and Special Composition Scheme in certain sectors on GST. The aim is to increase revenue collection and reduce evasion in the pan masala, gutkha, and chewing tobacco industries. The recommendations include implementing compliance and tracking measures, allowing exports only with LUT and refund of accumulated ITC, and changing the compensation cess from ad valorem to a specific tax-based levy.

Read More : Gist of GST Notifications pursuant to 49th GST Council Meeting

  Report