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Summary of Key Decisions from the 28th GST Council Meeting

The 28th GST Council meeting introduced pivotal changes in July 2018, simplifying return filing for small taxpayers, expanding benefits for composition dealers, and deferring the reverse charge mechanism. Key rate rationalizations included exempting sanitary napkins and reducing rates on essential items and electronics. Additionally, the Council addressed GST registration, enhanced e-way bill compliance, and broadened the scope of Input Tax Credit, impacting various sectors of the Indian economy.

📖 7 min read read🏷️ GST Council Meeting Decisions

The 28th Goods and Services Tax (GST) Council meeting, held on July 21, 2018, in New Delhi, introduced several significant changes aimed at simplifying compliance, rationalizing rates, and enhancing the overall GST framework. These amendments affected taxpayers, composite dealers, and exporters, among other stakeholders. This article outlines the pivotal outcomes and implications of this meeting.

Recent GST Council Updates

Before delving into the decisions of the 28th meeting, it is helpful to note other significant Council gatherings:

47th GST Council Meeting

The 47th GST Council convened in Chandigarh on June 28-29, 2022. During this session, Union FM Nirmala Sitharaman presided over discussions that led to proposals for rate adjustments aimed at increasing revenue and correcting inverted tax structures, alongside a reduction in the GST exemption list. E-commerce vendors and composition scheme taxpayers also received compliance relaxations.

46th GST Council Meeting

On December 31, 2021, the 46th GST Council met in New Delhi, where Finance Minister Nirmala Sitharaman chaired a meeting that resulted in postponing the proposed 12% GST rate increase for textile products.

45th GST Council Meeting

The 45th GST Council meeting took place on September 17, 2021. Key discussion points included extending tax reliefs for essential COVID-19 items, addressing GST compensation for states, and resolving issues related to inverted tax structures.

43rd GST Council Meeting

The 43rd GST Council meeting, held on May 28, 2021, saw the reintroduction of the GST amnesty scheme. Furthermore, late fees were standardized for all taxpayers, with a particular focus on small businesses. Imports of COVID-19 treatment equipment and relief supplies were also granted IGST exemption until August 31, 2021.

Highlights of the 28th GST Council Meeting

Meeting Details

The 28th GST Council convened in New Delhi on Saturday, July 21, 2018. The meeting was presided over by Shri Piyush Goyal, who later addressed the press at approximately 7:30 p.m.

Streamlined GST Return Filing Process

The Council approved several measures to simplify the GST return filing process:

  • Taxpayers with an annual turnover up to Rs 5 crores can now opt for quarterly GST return filing, an increase from the previous Rs 1.5 crores limit. However, these taxpayers are still required to remit taxes monthly via a challan. Returns can be filed using 'Sahaj' (for B2C supplies only) or 'Sugam' (for both B2B and B2C supplies).
  • For regular taxpayers with an annual turnover exceeding Rs 5 crores, monthly return filing remains mandatory. A new return filing system, proposed by Shri Nandan Nilekani, was approved, based on an

Further Reading

Frequently Asked Questions

What is the purpose of the GST Council meetings?
GST Council meetings are pivotal gatherings where the Central and State governments collaboratively discuss and make decisions regarding GST law, rates, exemptions, and administrative procedures in India, aiming to streamline the indirect tax system.
How do GST rate rationalizations affect consumers?
GST rate rationalizations can directly impact consumers by making certain goods and services cheaper or more expensive. A reduction in rates typically lowers the final price, while an increase raises it, influencing purchasing power and market demand.
What is the Input Tax Credit (ITC) and why is its scope important?
Input Tax Credit (ITC) allows businesses to claim credit for the GST paid on purchases of goods and services used for their business activities. Expanding its scope means more business expenditures become eligible for credit, reducing the overall tax burden and preventing tax cascading.
What are the benefits of the Composition Scheme under GST?
The Composition Scheme simplifies GST compliance for small taxpayers by allowing them to pay GST at a fixed, lower rate of their turnover, instead of the regular rates. It also reduces the frequency of return filings and detailed record-keeping requirements, though it restricts ITC claims and inter-state sales.
How does deferring the Reverse Charge Mechanism (RCM) impact businesses?
Deferring the Reverse Charge Mechanism (RCM) provides temporary relief to registered businesses by suspending the requirement to pay GST on supplies received from unregistered vendors. This reduces compliance complexities and cash flow impact for businesses, especially small ones, by shifting the tax payment responsibility to the recipient in specific scenarios.

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