The 48th meeting of the GST council was held on 17th December 2022 through Video conference.
Note: The recommendations would be given effect through the relevant circulars /notifications/ law amendments which alone shall have the force of law.
RETURNS
- Restriction on 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, and section 9(5) of CGST Act, 2017, by the supplier and reporting by the ECO in respect of supplies made under section 9(5) of CGST Act, 2017.
- Restrict furnishing of FORM GSTR-1 for a subsequent tax period if the taxpayer has neither deposited the amount specified in the intimation (Difference between liability declared in GSTR 3B and GSTR 1) nor has furnished a reply explaining the reasons for the amount remaining unpaid.
INPUT TAX CREDIT
- Amend CGST Rules, 2017 Retrospectively w.e.f 01.10.2022 to provide for reversal of input tax credit, in terms of second proviso section 16 of CGST Act, only proportionate to the amount not paid to the supplier vis a vis the value of the supply, including tax payable.
- prescribe the mechanism for reversal of input tax credit by a registered person in the event of non-payment of tax by the supplier by a specified date and mechanism for re-availment of such credit, if the supplier pays tax subsequently.
- Procedure for verification of input tax credit in cases involving difference in input tax credit availed in FORM GSTR-3B vis a vis that available as per FORM GSTR-2A during FY 2017-18 and 2018-19.
NOTICES / APPEALS
- Rule 88C and FORM GST DRC-01B to be inserted in CGST Rules, 2017 for intimation to the taxpayer, by the common portal, about the difference between liability reported by
the taxpayer in FORM GSTR-1 and in FORM GSTR-3B for a tax period, where such
difference exceeds a specified amount and/ or percentage, for enabling the taxpayer to
either pay the differential liability or explain the difference. This would facilitate taxpayers to pay/ explain the reason for the difference in such liabilities reported by them, without intervention of the tax officers. - 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.
- To provide the facility for withdrawal of an application of appeal up to certain specified stage to help in reducing litigations at the level of appellate authorities.
- Clarifying the manner of re-determination of demand in terms of section 75 (2) of CGST Act, 2017.
- raise minimum threshold of tax amount for launching prosecution under GST from Rs. 1 Crore to Rs. 2 Crores, except for the offence of issuance of invoices without supply of goods or services or both
- Reduce the compounding amount from 50% to 150% of tax amount to the range of 25% to 100%;
REFUND TO UNREGISTERED PERSON
To prescribe the procedure for filling application of refund by unregistered buyers in such case, there is no procedure for claiming of refund of tax borne by the unregistered buyers in cases where the contract/ agreement for the 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.
REGISTRATION
PAN-linked mobile number and e-mail address (fetched from CBDT database) to be captured and recorded in FORM GST REG-01 and OTP-based verification to be conducted at the time of registration on such PAN-linked mobile number and email address to restrict misuse of PAN of a person by unscrupulous elements without knowledge of the said PAN-holder.
Cancellation of registration under GST TDS/TCS on request.
OTHERS
- No GST payable where the residential dwelling is rented to a registered person if is rented it in his/her personal capacity for use as his/her own residence and his own account and not on account of his business.
- No Claim Bonus offered by the insurance companies to the insured is can claim as deduction for valuation of insurance services.
- Incentive paid to bank by central Government under scheme of promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in nature of subsidy and thus not taxable.
These are some of the recommendations of the GST Council. All recommendations shall be applicable once changes are made in Act / Rules / Notifications or Circulars.
Dec 19, 2022 - Blog - Team SSB
