Minimum threshold of tax amount for launching prosecution under GST except for fake issuance of invoices.
1 crore
2 crores
2
Reduce the compounding of tax amount
50% to 150%
25% to 100%
No punishment for obstruction or preventing any officer in discharge of his duties, deliberate tempering of material evidence, failure to supply the information.
In the 47th GST Council, unregistered suppliers and composition taxpayers were allowed to make intra-state supply of goods through E-Commerce Operators (ECOs), subject to certain conditions. The Council has recommended the scheme may be implemented w.e.f. 01.10.2023.
Amendment in rules
with retrospective effect from 01.10.2022 to provide for reversal of input tax credit only proportionate to the amount not paid to the supplier.
to provide for facility to the registered persons, who are required to collect tax at source or deduct tax at source for cancellation of their registration on their request.
to provide clarity on the requirement of submission of certified copy of the order appealed against and the issuance of final acknowledgment by the appellate authority which will facilitate timely processing of appeals.
to prescribe the procedure for claim of refund of tax borne by the unregistered buyers where there is contract/ agreement for supply of services, like construction of flat/house and long-term insurance policy, is cancelled and the time period of issuance of credit note by the concerned supplier is over.
Circulars to be issued providing clarification on
“No Claim Bonus” offered by the insurance companies is an admissible deduction for valuation of insurance services,
the issue of treatment of statutory dues under GST law for the taxpayers having finalized proceedings in Insolvency and Bankruptcy Code
the issues pertaining to the place of supply of services of transportation of goods and availability of ITC to the recipient of such supply.
in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large
Procedure for verification of ITC in cases involving difference in ITC availed in FORM GSTR-3B and GSTR-2A during FY 2017-18 and 2018-19,
Clarifying the manner of re-determination of demand and applicability of e-invoicing on an entity.
The Council recommended to insert new rule to prescribe the procedure of reversal of ITC by a registered person in case of non-payment of tax by the supplier by a specified date and re-availment of such credit
Transactions kept outside the outside the scope of GST with retrospective affective affect from 01.07.2017 (amendment was bought wef 01.02.2019):
supplies of goods from a place outside the taxable territory to another place outside the taxable territory,
high sea sales and
supply of warehoused goods before their home clearance
However, no refund of tax paid shall be available in respect of such transactions.
New form to be inserted to provide the facility of withdrawal of an application of appeal up to certain specified stage to reduce litigations at the level of appellate authorities.
Measures for streamlining compliances in GST
Biometric-based Aadhaar authentication and risk based physical verification of registration applicants.
PAN-linked mobile number and e-mail address to be captured and recorded at the time of registration to restrict misuse of PAN of a person.
Amendment in sections to restrict the filing of returns/ statements to a maximum period of three years from the due date of filing of the relevant return/statement.
FORM GSTR-1 to be amended to provide for reporting of details of supplies made through ECOs by the supplier and reporting by the ECO in respect of supplies made.
New rule and form to be inserted intimating about the difference between liability reported in GSTR-1 and GSTR-3B for a tax period, where such difference exceeds a specified amount and/ or percentage.
Amendment in definition of “non-taxable online recipient” and “Online Information and Database Access or Retrieval Services (OIDAR)” so as to reduce interpretation issues and litigation.
Others
The GST council has made recommendations relating to changes in GST tax rates for ease of trade and to streamline GST compliances
S No.
Description
Old Tax Rate
New Tax Rate
1
Husk of pulses including chilka and concentrates including chuni/churi, khanda.The Council decided to regularise the intervening period starting from 3.08.2022
5%
Nil
2
Ethyl alcohol supplied to refineries for blending with motor spirit (petrol)
18%
5%
Clarification provided:
Rab (rab-salawat) and fryums manufactured using the process of extrusion will attract GST @ 18%
Cess of 22% is applicable to motor vehicles of
a) type of the vehicle as SUV, b) having an engine capacity exceeding 1500 cc, c) length exceeding 4000mm and d) ground clearance of 170 mm or above.
Goods imported for petroleum operations which are falling in lower rate category of 5% will attract GST @5% and if general rate is more than 12%, GST @12% will be applicable.
No GST is payable where the residential dwelling is rented to a registered person in his/her personal capacity for use as own residence and not on account of the business.
Incentive paid to banks for promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in the nature of subsidy and are not taxable.
Aditi Mittal, Article Associate-Indirect Tax, SW India
