Recent GST Council Meeting Summaries

For context, several subsequent GST Council meetings have addressed various tax and compliance matters:

• The 47th GST Council convened on June 28-29, 2022, in Chandigarh. This meeting, chaired by Union FM Nirmala Sitharaman, proposed rate revisions to boost revenue and correct inversions, along with streamlining the GST exemption list. Compliance relief measures were also extended to e-commerce suppliers and taxpayers under the composition scheme. Read more about the 47th GST Council meeting
• On December 31, 2021, the 46th GST Council meeting took place in New Delhi. During this session, led by Union FM Nirmala Sitharaman, a decision was made to postpone the intended increase of the GST rate on textiles to 12%. Read more about the 46th GST Council meeting
• The 45th GST Council meeting occurred on September 17, 2021. Key agenda items included extending tax concessions for essential COVID-19 supplies, discussions on state GST compensation, and addressing inverted tax structures. Read more about the 45th GST Council meeting
• On May 28, 2021, the 43rd GST Council meeting was held. The Council approved the reintroduction of the GST amnesty scheme and rationalized late fees for all taxpayers, particularly small ones. Additionally, IGST exemption was granted for imported COVID-19 treatment equipment and relief materials until August 31, 2021. Read more about the 43rd GST Council meeting

Overview of the 22nd GST Council Meeting

The 22nd GST Council meeting convened on October 6, 2017. The following section outlines the key decisions and announcements released from this significant gathering.

Simplified Compliance for Small Businesses

• The government acknowledged challenges faced by small businesses with an annual turnover up to INR 1.5 crore, announcing a shift from monthly to quarterly return filing. Tax payments will also occur quarterly.
• These businesses were required to file monthly returns for July, August, and September, with the transition to quarterly filing commencing from the October cycle.

Concessions for Service Providers

• Service providers are now exempt from GST registration if their aggregate turnover remains below INR 20 lakh (or INR 10 lakh in special category states, excluding J&K), even when engaging in inter-state supply of services.
• Goods Transport Agency (GTA) services provided to unregistered individuals are exempt from GST.
• Provisions for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) have been deferred until March 31, 2018.
• Similar to small businesses, service providers also had to file monthly returns for July, August, and September before transitioning to quarterly filing from October onwards.

Support Measures for Exporters

• Refunds for July exports were slated for processing by October 10, with August export refunds to be processed by October 18.
• An e-wallet system is set to be introduced for all exporters from April of the following year. This e-wallet will hold a notional credit amount, against which eventual refunds will be offset.
• Merchant exporters will incur a nominal 0.1% GST on exports, enabling their suppliers to claim Input Tax Credit (ITC).

Modifications to the Composition Scheme

• Businesses otherwise eligible for the composition scheme, and also providing any exempt services, can now opt for the scheme.
• The eligibility turnover limit for the composition scheme has been increased to INR 1 crore.
• Under the revised scheme, traders will pay 1% GST, manufacturers 2%, and restaurants 5%.
• The deadline for filing FORM GSTR-4 for the July-September 2017 quarter was extended to November 15, 2017.

Reverse Charge Mechanism (RCM) Deferred

The Reverse Charge Mechanism (RCM) for purchases made from unregistered dealers has been suspended until March 31, 2018.

Exemption for Advance Receipts for Small Businesses

Taxpayers with an annual turnover of up to INR 1.5 crore are no longer required to pay GST on advances received for the supply of goods.

Key GST Rate Revisions

• GST on unbranded Ayurvedic medicines was reduced from 12% to 5%.
• The tax rate for man-made yarn saw a reduction from 18% to 12%, impacting the textile sector.
• GST rates on numerous job work items were decreased from 12% to 5%.
• Similarly, the GST rate for certain stationery items and diesel engine parts was lowered from 28% to 18%.
• Khakra and unbranded namkeen now have a GST rate of 5%, down from 12%.
• Tax on zari work was also reduced from 12% to 5%.
• A 35% abatement was introduced for old vehicle leasing contracts.
• The printing job work rate was revised from 12% to 5%.

Additional Decisions

• The implementation of the e-way bill system was postponed to April 1, 2018.
• Jewelers received relief as the requirement to furnish a PAN card for jewelry purchases exceeding INR 50,000 was removed. The new threshold for KYC requirements will be determined later.
• A 35% abatement was applied to old vehicle leasing contracts.
• The due date for GSTR-6, filed by Input Service Distributors, for July, August, and September 2017, was extended to November 15, 2017.

Matters Under Review

• Finance Minister Arun Jaitley announced that a Group of Ministers (GoM) would reassess the tax applicable to AC restaurants, potentially lowering the GST from 18% to 12%. This GoM was tasked with submitting its report within 14 days.
• The GoM was also mandated to explore ways to make the composition scheme more appealing.

For additional news and updates regarding GST, you can visit the GST News and Announcement page.

Information on the 35th GST Council Meeting can be found on the 35th GST Council Meet News & Updates page.