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52nd GST Council Meeting – Top highlights & key takeaways

The 52nd GST Council meeting took on the 7th of October 2023, at Sushma Swaraj Bhawan, New Delhi. The meeting was presided over by Smt Nirmala Sitharaman, the Union FM and attended by MoS (F) Shri Pankaj Chaudhary, the Revenue Secretary Chairman CBIC and Member CM Member GST, Member GST, TP and senior officers from the Union Government and States.

It is the 52nd GST Council meeting is being held approximately two months after the previous GST Council meeting on 2nd August 2023.

The 52nd GST Council meeting's key points

In a major step towards making it easier to understand this Goods and Services Tax (GST) structure and structure, The Indian government has enacted a variety of changes and exemptions with the intention of helping both businesses and consumers. The changes, which range from lower rates to exemptions are expected to have a major impact on a variety of areas that make up the market. Let's look at the most significant modifications that have been implemented:

1. GST Rates Reduced GST Rates:

a) Millet Flour:

GST rates for products made of millet flour in powder comprising minimum 70% millet in weight, have been modified. The products, if packaged and labeled in pre-packaged form, now have to pay the GST rate of 5 while they are totally exempt when they are sold in different types.

B) Imitation Zari Yarn and Thread

Imitation zari thread, or yarn made of the plastic film of metallised polyester which falls under HS 5605 will now be subject to an additional GST of 5%.

C) The value of foreign-going vessels:

Foreign-owned vessels that convert in coastal waters will have to pay an Integrated GST of 5% (IGST).

D) Molasses and ENA:

The GST rate on molasses was drastically decreased from 28 percent to the current rate of 5%. Furthermore, Extra Neutral Alcohol (ENA) for use in industry is now subject to GST of 18%.

2. GST Exemptions:

is a) Services for the Government Bodies:

Pure and composite services provided to Central/State/UT governments, local authorities, and services related to functions entrusted to Panchayat/Municipality under the Constitution of India are now exempt from GST.

B) Water Supply and Sanitation Services:

Water supply services as well as public health, sanitation conservation Solid waste management and slum rehabilitation and improvement provided to the government are tax-free. GST.

C) Conversion of foreign Going vessels:

Foreign-flagged vessels of foreign flag that convert to coastal runs, subject to re-conversion after six months. They are not subject to GST.

3. Other Important Clarifications

(also known as) Job Work Services:

Job work services to transform malt from barley will receive a lower GST rate of 5%, and not 18 percent.

B) Amnesty Scheme:

Amnesty schemes have been launched up to January 31st, 2024. It permits those who aren't able to make an appeal to the section 73 or demand orders 74 to appeal and subject to an initial deposit of 12.5 percent of the tax at issue.

C) Simplified Methods:

Numerous procedural modifications have been made for example, including the exclusion of buses that are incorporated as companies from specific GST rules and clarifications relating to personal guarantees given director-level guarantees to bank.

D) SEZ Provisions:

Suppliers operating in special economic zones (SEZ) that are authorized to operate are permitted to supply SEZ owners or units based on the payment of GST and receive tax refunds that was paid.

(e) CBIC Circulars:

The Central Board of Indirect Taxes and Customs (CBIC) will issue circulars to clarify issues related to personal guarantees made directorships to bankers, the location of supply, as well as export remittances on Vostro accounts.

f) ISD-mandatory provisions:

Input Service Distributor (ISD) provisions will become mandatory in the future for the allocation of Input Tax Credit (ITC).

g) Provisory Attachments:

The provisional attachment to FORM GST DRC-22 will be invalid for one year after when you place the purchase.

H) Rules for the Composition of GSTAT

The minimum age is 50 years, while the maximum age is 70 for the President, and 67 in the case of members GSTAT. Advocates with a minimum of 10 years' experience are only eligible to be appointed as judges.

The changes show the government's intention to foster more conducive business environments while also ensuring fairness and transparency within the GST system. It is expected the changes are expected to have a positive impact on diverse industries which will benefit business and consumers alike. Keep an eye on the website for more information when we learn more about how the Indian Government continues to refine and enhance its GST structure to accommodate the ever-changing demands of the country's economy.

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Frequently Asked Questions

The Council has recommended implementing an amnesty scheme through a special procedure under section 148 of the CGST Act, 2017. This scheme is for taxable persons who were unable to file an appeal under section 107 of the Act against the demand order under section 73 or 74 of the CGST Act, 2017 issued on or before March 31, 2023.

During the recent GST council meeting, amendments were made to the GST rules. Kerala has been allowed to impose a calamity cess for 2 years to aid in the rehabilitation of states. The revised GST rate of 6% is now applicable to composition scheme service providers with an annual turnover of up to 50 lakh.

The GST Council has recommended retaining the current exemption entries without any changes. Additionally, the Council has also suggested exempting services such as water supply, public health, sanitation, conservancy, solid waste management, and slum improvement and upgradation provided to Governmental Authorities.

The GST Council, comprising the Union Finance Minister and representatives from all States and Union Territories, was formed to decide on different aspects of GST, such as tax rates, exemptions, and administrative procedures. It played a vital role in shaping the GST structure in India.

Finance Minister Nirmala Sitharaman will preside over the 52nd Goods and Services Tax (GST) Council meeting in New Delhi.

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