48th GST Council meeting: Union Finance Minister Smt. Nirmala Sitharaman chairs the 48th meeting of the GST Council via virtual mode, in New Delhi, today. Along with the FM, Union Minister of State for Finance Shri Pankaj Chaudhary, besides Finance Ministers of States & UTs (with legislature) and Senior officers from Union Government & States are also attended the meeting.
Summary of decisions taken in 48th GST Council meeting
- Decriminalising certain offences including obstructing any officer from discharging his duties, threshold limit of tax amount for launching prosecution in any criminal offence under GST laws raised from Rs 1 cr to 2 cr for all offences except fake invoices,
- Tax rate on husk of pulses reduced to nil from 5 per cent.
- GST council decided a concessional GST of 5% for blending ethanol, from earlier 18%
- It was also decided to include supply of Mentha arvensis under reverse charge mechanism as has been done for Mentha Oil.
- Section 37, 39, 44 and 52 of CGST Act, 2017 to be amended to restrict filing of returns/ statements to a maximum period of three years from the due date of filing of the relevant return / statement.
- There is no procedure for claim of refund of tax borne by the unregistered buyers in cases where the 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. The Council recommended amendment in CGST Rules, 2017, along with issuance of a circular, to prescribe the procedure for filing application of refund by the unregistered buyers in such cases.
- The council clarified that vehicle SUVs with an engine capacity exceeding 1,500 cc and length exceeding 4,000 mm with a ground clearance of 170 mm or above will attract a 22% compensation cess.
- GST Council has clarified that insurance companies’ no-claim bonus will not attract tax.
The Council could decide on only 8 out of the 15 agenda items due to paucity of time, Finance Minister Nirmala Sitharaman said, adding the items not considered included one pertaining to setting up of appellate tribunals for GST.
The issue of mechanism to curb tax evasion in pan masala and gutkha businesses also could not be taken up. No new taxes have been brought, Sitharaman said on the deliberations at the GST Council’s 48th meeting.
GST on online gaming and casinos was not discussed as the report of a Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, on the issue submitted its report only a couple of days back.