Smt. Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs, presided over the 52nd meeting of the GST Council.
Smt. Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs, presided over the 52nd meeting of the GST Council. The discussion discussed a number of significant proposals and conclusions about adjustments to the GST tax rates, trade facilitation initiatives, and streamlining compliance.
Recommendations for Goods and Services GST Rates
alterations to the goods’ GST rates
Millet-based Food Preparations:
The GST rates for millet-based food preparations have been modified.
It will have a 0% GST rate if sold loose, and a 5% GST rate if sold pre-packaged.
Metallized polyester or plastic film-based imitation zari threads will be subject to a 5% GST levy.
However, the polyester/plastic film that was used will not be refunded.3 Foreign Going Vessels: 5% IGST will apply to foreign going vessels that switch to coastal runs.
For these vessels, a conditional IGST exemption is suggested, providing they convert back to foreign-going vessels within six months.
Other Modifications Affecting Goods:
Extra Neutral Alcohol (ENA): GST will not apply to ENA used to make alcoholic beverages for human consumption.
Molasses: There will be a 28% to 5% GST reduction on molasses.
This will lower the cost of producing cow feed and provide mills more cash to pay off cane debts owed to sugarcane growers.
Rectified Spirit for Industrial Use: A new, 8-digit HS code with an 18% GST rate will be developed for rectified spirit used in industry.
GST changes Service Prices:
Government Services Exemptions:
GST will not apply to services rendered to local governments, Central/State/UT governments, or services like water supply, public health, sanitation, conservancy, solid waste management, slum development, or upgradation provided to governmental bodies.
Similar to job work relating to food and food products, job work services for turning barley into malt will be subject to a 5% GST rate.
GST for ECO-provided bus transportation services:
Under section 9(5) of the CGST Act, 2017, bus operators constituted as corporations may be exempt from paying GST for bus transportation services provided by Electronic Commerce Operators (ECOs).
Trusts for District Mineral Foundations (DMFT):
DMFTs established by state governments will be regarded as governmental authorities and be free from GST.
GST and Indian Railways: In order for Indian Railways to be eligible for Input Tax Credit (ITC), all goods and services that they provide would be subject to Forward Charge Mechanism taxation.
Trade Facilitation Measures Appeals Amnesty Program:
Taxpayers who were unable to challenge demand orders in the allotted time limit will be granted amnesty under a new program.
As of right now, they have until January 31, 2024, to file an appeal against such orders by paying 12.5% of the tax in question, with at least 20% being deducted from their Electronic Cash Ledger.
Clarifications on the Taxability of Personal Guarantees: Details will be given about the taxability of corporate guarantees made for linked parties, including those by holding companies to subsidiaries, as well as personal guarantees offered by directors to banks.
Restoring Provisionally Attached Property Automatically: After a year, provisionally attached properties will be automatically released, without the need for a separate order from the Commissioner.
services.
.Clarifications on Place of Supply: A circular will be released to specify the location of supply for a number of services, including co-location, advertising, and transportation of goods.
The admissibility of export remittances received in Special INR Vostro accounts for the consideration of service supply to qualify as export of services will be made clear in a circular that will be released.
Changes will be made to let suppliers to Special Economic Zone (SEZ) developers or units to provide them with goods or services in exchange for the payment of integrated tax with a return route.
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Other Law and Procedure-Related Measures
Alignment of CGST Act with Tribunal Reforms Act: The CGST Act will undergo amendments to bring its provisions into compliance with the Tribunal Reforms Act, including the qualifications and age restrictions for the appointment of judges and Presidents.
ISD Procedure Amendment: In some circumstances, the Input Service Distributor (ISD) procedure will be made necessary for the distribution of Input Tax Credits (ITC). Rules will be adjusted as necessary.
Property Attached Provisionally Will Be Automatically Released After One Year, Attached Property Will Be Automatically Released Without The Need For A Separate Order From The Commissioner.