48th GST Council meeting

 Given below the update with respect to relevant announcements made post the 48th GST Council Meeting held on 17 December 2022:

 

1.       There have been no tax increases on any item.

 

2.       GST rate on “Husk of pulses including chilka and concentrates including chuni/churi, khanda” has been reduced from 5% to Nil

·      Further, as a relief measure, the intervening period has been regularised starting from the date of issuance of Circular (3 August 2022) in respect of GST on ‘husk of pulses including chilka and concentrates including chuni/churi, khanda’  on “ as is basis”  on account of genuine doubts.

 

3.       No GST payable in cases where the residential dwelling is rented to a registered person (in his/her personal capacity for use as his/her own residence) and not on account of his business.

 

4.       Clarification to be issued for issues pertaining to place of supply of services of transportation of goods, and availability of input tax credit to the recipient of such supply.

 

5.       Circular to be issued for procedure for verification of differences between input tax credit as per GSTR-3B and Form GSTR-2A for FY 17-18 and 18-19.

 

6.       Mechanism to be prescribed for reversal of input tax credit by the recipient, where the supplier has not discharged the applicable taxes, along with re-availment mechanism if the supplier pays the tax subsequently.

 

7.       Amendment in the rules to provide for reversal of input tax credit only proportionate to the amount not paid to the supplier vis-à-vis the value of the supply, including tax payable.

 

8.       Minimum threshold for initiating prosecution proceedings has been raised from INR 1 crore to INR 2 crores; except for the offence of issuance of  invoices without supply of goods or services or both.

 

9.       Following offences have been decriminalised under GST (ie, prosecution proceedings shall not be launched in such cases)-

o    obstruction or preventing any officer in discharge of his duties;

o    deliberate tempering of material evidence;

o    failure to supply the information.

 

10.   Refund mechanism to be prescribed for claiming of GST refund by unregistered persons (where the time limit for issuance of GST credit note by supplier is over).

 

11.   Compliance related amendments/ proposals:

 

·      Relevant sections/ provisions to be amended to restrict filing of returns/ statements to a maximum period of three years from the due date of filing of the relevant return/ statement.

·      Relevant rules and forms to be introduced for intimation to the taxpayer, about the difference between liability reported by the taxpayer in FORM GSTR-1 and in FORM GSTR-3B for a  tax period, where such difference exceeds a specified amount and/ or percentage, for enabling the taxpayer to either pay the differential liability or explain the difference.