Finally, the GST council 47th meeting has been concluded and the council has approved. A change in some of the tax rates to rationalize the levy was approved by the Council, but non-BJP-ruled states did not agree to the change, setting up a potential conflict over tax revenues. GST Council lost some tax exemptions on the first day of its term. State revenue demands also increased.
Despite media reports and discussions in the minister panel earlier in the day, no further discussion has been held on day one of Chandigarh’s 47th GST council meeting. On the first day of the meeting which is being led by the Hon’ble Union Minister of Finance, many key decisions have been updated and taken.
In an announcement earlier this week, Finance Minister Nirmala Sitharaman announced that the government will seek to include jet fuel under the GST system as it is an essential input for the airline industry. A main topic of discussion on day one of the 47th council meeting was GST (Goods and Services Tax) rate rationalization, as well as the exclusion of services from the tax net and a new GST rate for the hotel and hospitality sector.
Download Press Release of 47th GST Council Meet
The council has taken several important decisions that will impact the common man to small business. Download the press release to know all key decisions
Meetings were being held at Chandigarh with panel members and state finance ministers.
Day 2 Update on GST Council 47th Meet
- Puducherry Minister K Lakshminarayan – The next 48th GST council meeting will be held in August 2022
- Electric vehicles, whether or not equipped with a battery pack, are eligible for a concessionary GST rate of 5 per cent, the GST Council.
- In addition to clarifying that guest anchors’ services provided by TV channels in lieu of honoraria are subject to GST
- It should be taxed at 5 per cent for patients’ rooms over Rs 5000 per day without ITC, depending on the amount charged
- GST Rate 5% from 12% – Ostomy, certain orthopaedic appliances
- GST Rate 5% from 18% – Goods and passengers transportation by ropeways
- GST Rate 12% from 18% – Renting of Truck/ Goods Carriage where fuel cost included
- GST Rate 18% from 12% – Tetra Pak, work contract services from bridges, metro, roads, effluent treatment plant, crematorium
- GST Rate 1.5% from 0.25% – Polished Diamonds
- 18% GST Rate
- Pumps – Submersible, Centrifugal, Deep tube-well turbine, Bicycle
- Paper knives with cutting blades, Pencil sharpeners and blades, Forks, Ladles, Spoons, Skimmers
- Sorting or grading, cleaning machine for seed, grain pulses; Milling industry machinery used for the working of cereals etc; Air Based Atta Chakki, Pawan Chakki
- Cleaning Machines used for fruit or other agricultural produce and its parts, Milking machines and dairy machinery
- 5% GST Rate – Honey, Dried Makhana, Curd, Wheat, Cereals, Curd, Meslin Flour, Jaggery, Puffed Rice
- The 47th Council Meeting ends on day two
- The government of Rajasthan requested a 5-year extension for the GST compensation program, says Rajasthan Minister Shanti Dhariwal. However, no response was received from the Centre.
- The council provides relief for the transportation industry. On June 29, the Goods and Services Tax (GST) council cut GST on ropeways, exempted foreign components of tourism packages from GST, and lowered GST on goods carriages that include fuel costs, according to the Economic Times.
- As per the report, 1.2 lakh small taxpayers also benefitted from the waiver of the registration requirement for small businesses with an annual turnover of up to Rs. 40 lakh and Rs. 20 lakh, respectively, using e-commerce platforms to sell products and being allowed to opt for the composite scheme.
- 12% GST Slab – Atlases, Charts, Maps, Hotel Rooms below 1K per day and 18% GST on Bank Fees for cheques
- Govt may extend the timings of the GST compensation period: Madhya Pradesh FM
- Uttrakhand FM requested the finance minister to help with the current revenue Loss
- Tamil Nadu FM asked for the past GST compensation extension
- Council members to discuss states’ compensation and other issues
- The meeting started with FM and other members.
All Day 1 Update on GST Council 47th Meet
The Official council has accepted the GOM’s interim report on GST rate rationalization.
- Edible oils cannot claim GST ITC refunds due to inverted rates
- There will likely be an inverted duty correction on printing, writing/ drawing ink from 12% GST rate to 18%
- Correcting the structure of inverted duty on LED lights, fixtures and lamps from 12% to 18%
- Solar water heater and works contract to govt proposed from 5% GST to 12% rate
- Inverted duty on tailoring and other job works for textiles correction proposed from 5% GST to 12% rate
Other 47th GST Meeting Update on Day 1st
- It has permitted the Taxpayers to amend their monthly tax returns (GSTR-3B).
- A second e-invoicing platform is offered by the National Informatics Centre (NIC) operated by the government. A council decision was made to bring into action six invoice registration portals over the next six months.
- Eliminating Revenue Leakage The Council has agreed to empower state officials and central officials to issue Show Cause Notices (SCNs) regardless of whether the taxpayer falls within their jurisdiction or not.
- A new plan is under development to combat GST evasion
- The GoM recommends taxing hospital rooms and services
- The policy of exempting hotel accommodation under Rs 1,000 will be discussed: Report
- Gold, and precious stones to be required to carry e-way bills by the GST council
- Compensation for states, simplified registration of electronic communication suppliers, and tax alterations on cards
- A five-year extension of GST compensation is sought by Chhattisgarh
- Meeting of GST Council could simplify GST for taxpayers: Dushyant Chautala
- The day 1 meeting has finished in Chandigarh with other members and ministers.
47th GST Council Meeting in Chandigarh 28-29 June 2022
On June 28 and 29 in Chandigarh, a GST meeting will be going to conducted by Finance Minister Nirmala Sitharaman. 47th GST Council meeting would be conducted on June 28-29, 2022 (Tuesday & Wednesday) in Chandigarh, the finance minister’s office tweeted.
The government has an eye on global inflationary trends said the Finance minister. “On GST, as you have pointed out, it is not with me alone. It has got to go to the GST Council. So the next time we meet in the council, I will put it on the table for them to discuss it.” Jet fuel does not come beneath the 5 items which were not engaged in the GST.
47th Council Meeting to be Schedule in June 2022
47th GST (Goods of Services Tax) council meeting to be scheduled in June 2022, the tax rate on some products and services can also be changed. The last GST meeting of the council was held in December 2021. In that meeting, the decision to increase the tax on some products of the textile industry was put on hold. After that, Finance Minister Nirmala Sitharaman had told that there is a need to discuss more on this topic. A decision on this can be taken in the next meeting. The upcoming 47th meeting of the GST Council will be held in July 2022 as FM Nirmala Sitharaman Ji is going ten-day trip to the US (United States) for the world bank-IMF meeting.
The other consists of crude oil, petrol, diesel, and natural gas. The minister mentioned that the government was tracking the global inflationary burden and that it will not permit the Indian economy to face the issues because of a lack of preparation of any kind.
FM mentioned that after the 2008-09 financial crisis the liquidity taps were not being shut down within time. From that the result comes around is that she mentioned that India will be one of the fragile 5 nations.
She also clarified that “The taper tantrum was not addressed at all. We have learned from the last crises. We are keeping a close look at the global inflationary pressure, and we will not allow the Indian economy to suffer from the want of preparation,”
Read Also: GST Council 1st Meeting to 46th Meeting
Inside a meeting, she ensured for immediate resolution of the legacy financial stress across the power distribution utilities as an effort to secure the change in the environment. She indeed mentioned that she will approach the banks to provide assurance for the liquidity assistance to the sectors that are to be required.
Answering the sector recommended for sending out another call for the dumping of the ferrous and non-ferrous metals into India, the minister mentioned that the competing demands of various sections of the industry large scale metal producers competing with the fewer cost imports and the requirement for the small businesses to provide the access for the cheaper raw materials and produce issues concerning to the policy.
Minster also mentioned that “While we do not want dumping, we also want the price to be at affordable levels for MSMEs,”
Sitharaman mentioned that the government was stating the complex issues for the power sector point to point.
Futuristic financing and effective partnership would proceed. The same is not been undergone longer. This is to be sorted out quickly as this is an important sector. “She added that it was important for this sector to be buoyant in order to meet India’s commitment to achieving net-zero emissions by 2070.”
FM indeed mentioned that the LIC IPO will be coming soon. The minister elaborated that nothing is to be found in the wanting of the process of divestment. Council does more care. She would instead approach that and then force it to conclude quickly. In the former year’s budget, I am interested in completing the commitments she said.
In FY23 the government settled out a target of INR 65000 cr in FY23. it indeed reduces the divestment target for FY22 to INR 78000 cr from INR 1.75 trillion.
