47th GST Council meeting Update

Measures for Trade facilitation:

a. Relaxation to E – Commerce Operator:

Waiver of mandatory requirement for registration under GST for ECO’s subject to the following conditions:

Aggregate turnover on all India basis does not exceed the turnover of Rs.40 Lakhs (Goods) or Rs.20 Lakhs (Service)
The person is not making any inter-State taxable supply.

b . Amendment in formula for calculation of refund of unutilized ITC on account of inverted rated structure:

Change in formula to consider utilization of ITC on account of inputs and input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the said tax period. This would help those taxpayers who are availing ITC on input services also.

c. Waiver of late fees & extension of due date of filing return for Composite Dealers:

Relax
ation
Return/ Form
Period
Current Due date
Revised due date

Waiver of late fees

GSTR

4

2021 –

22

30-June-2022

28-July-22

Extension of due date

CMP

– 08

Q1 2022

– 23

18-July-2022

30-July-22

d. Exemption from filing annual return in FORM GSTR-9/9A for FY 2021-22 to be provided to taxpayers having Annual aggregate Turn over up to Rs. 2 crores.

 

e. Re-credit of amount in electronic credit ledger to be provided in those cases where erroneous refund amount sanctioned to a taxpayer on account of accumulated ITC or on account of IGST paid on zero rated supply of goods or services, is deposited by him along with interest and penalty. A new FORM GST PMT-03Ais introduced for the same.

 

f. Transfer of balance in electronic cash ledger of a registered person to electronic cash ledger of CGST and IGST of a distinct person.

Rationalization of GST Rates:

What’s costlier:

Goods:

S
No
Particulars
Existing Rate (%)
Revised Rate (%)

1

Printing, writing or drawing ink

12

18

2

Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc

12

18

3

Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps

12

18

4

Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc; Pawan Chakki that is Air Based Atta Chakki; Wet grinder

5

18

5

Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery

12

18

6

LED Lamps, lightsand fixture, their metal printed circuits board;

12

18

7

Drawing and marking out instruments

12

18

8

Solar Water Heater and system;

5

12

9

Prepared/finished leather/chamois leather / composition leathers;

5

12

10

Cut and Polished diamonds

0.25

1.5

11

Tetra Pak (Aseptic Packaging Paper)

12

18

12

Petroleum/ Coal bed methane

5

12

13

E-waste

5

18

Services:

S
No
Particulars
Existing
Rate (%)
Revised Rate (%)

1

Services supplied by foreman to chit fund

12

18

2

Job work in relation to processing of hides, skins and leather

12

18

3

Job work in relation to manufacture of leather goods and footwear

5

12

4

Job work in relation to manufacture of clay bricks

5

12

What’s Cheaper:

Goods:

S
No
Particulars
Existing Rate (%)
Revised Rate (%)

1

Ostomy Appliances

12

5

2

Orthopedic appliance- Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens

12

5

3

IGST on import of Diethylcarbamazine (DEC) tablets supplied free of cost for National Filariasis Elimination Programme

5

0

Services:

S
No
Particulars
Existing Rate (%)
Revised Rate (%)

1

Transport of goods and passengers by ropeways.

18

5 (With ITC)

2

Renting of truck/goods carriage where cost of fuel is included

18

12

Removal of GST Exemption:

S
No
Particulars
Existing Rate (%)
Revised Rate (%)

1

Cheques, lose or in book form

0

18

2

Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed

0

12

3

Balloons And Dirigibles, Gliders, Hand Gliders And Other Non-Powered Aircraft

0

18

4

Transportation by rail or a vessel of railway equipment and material.

0

Applicable

Rate

5

Storage or warehousing of commodities which attract tax (nuts, spices, copra, jaggery, cotton etc.)

0

Applicable

Rate

6

Fumigation in a warehouse of agricultural produce.

0

Applicable

Rate

7

Services by RBI, IRDA, SEBI, FSSAI

0

Applicable

Rate

8

Renting of residential dwelling to business entities (registered persons).

0

Applicable

Rate

9

Services provided by the cord blood banks by way of preservation of stem cells

0

Applicable

Rate

10

Common bio-medical waste treatment facilities for treatment or disposal of biomedical waste

0

12

11

Hotel accommodation priced up to Rs. 1000/day

0

12

12

Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital

0

5%

without ITC

The above rates will be made

effective from 18th July 2022.

Other miscellaneous changes:

All taxable service of Department of Posts would be subject to forward charge.
Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward
charge; option to be exercised at the beginning of Financial Year.
Renting of motor vehicles for transport of passengers to a body corporate for a period is taxable in the hands of body corporate under RCM.
Renting of vehicle with operator for transportation of goods on time basis attracts GST at 18%. GST on such renting where cost of fuel is included in the consideration charged is being prescribed at 12%.
Sale of land after leveling, laying down of drainage lines etc. is sale of land and does not attract GST.

2 Comments

  • Very apt content

  • Nice and very informative

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