The GST Council held its 47th meeting at Chandigarh on 28th and 29th June 2022. Major key recommendations made by the Council are here as below:

Measure for Trade facilitation

  1. Waiver of requirement of mandatory registration for person supplying goods through ECOs subject to conditions.
  2. Composition tax payers would be allowed to make intra-State supply through e-commerce subject to conditions.
  3. Pertaining to supplies to SEZ Developer/Unit, an Explanation to be inserted to clarify that 'specified officer' under the said sub-rule shall mean the 'specified officer' or 'authorized officer', as per SEZ Rules, 2006.
  4. No requirement of reversal of input tax credit for exempted supply of Duty Credit Scrips by the exporter.
  5. Recommended amendments of CGST Rules to provide for refund of unutilized ITC on account of export of electricity.
  6. Supplies of indigenous goods from Duty Free Shops (DFS) at international terminal to outgoing international passengers to be treated as exports by DFS and consequential refund of GST to be available to them.
  7. Limitation under section 73 for FY 2017-18 for issuance of order in respect of other demands linked with due date of annual return, to be extended till 30.09.2023.

Clarifications on GST rate for Goods/Services

  1. Electric vehicles whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5%.
  2. Services associated with transit cargo both to and from Nepal and Bhutan are covered by exemption under entry 9B of notification No. 12/2017-CT(R) dated 28.06.2017.
  3. Activity of selling of space for advertisement in souvenirs published in the form of books is eligible for concessional GST at 5%.
  4. Services provided by the guest anchors to TV channels in lieu of honorarium attract GST.
  5. Services in form Assisted Reproductive Technology (ART)/In vitro fertilization (IVF) are covered under the definition of health care services for the purpose of exemption under GST.
  6. Renting of motor vehicles for transport of passengers to a body corporate for a period (time) is taxable in the hands of body corporate under RCM.
  7. Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercise at the beginning of Financial Year. RCM option to continue.
  8. Service provided by Indian tour operator to a foreign resident for a tour partially in India and partially outside India to be taxed proportionately to the tour conducted in India for such foreign tourist subject to conditions that this concession does not exceed half of tour duration.

Rate rationalisation to remove inverted duty structure on Goods/Services*

S. No.

Description

From

To

1.

LED lamps, lights and fixture, their metal printed circuits board;

12%

18%

2.

Solar water heater and system;

5%

12%

3.

Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc.

12%

18%

GST rate changes on Goods/Services*

S. No.

Description

From

To

1.

Ostomy appliances

12%

5%

2.

Orthopaedic appliance- splints and other fracture appliances; artificial parts of the body; other

12%

5%

3.

Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc.

12%

18%

4.

Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc.)

12%

18%

5.

Cut and polished diamonds

0.25%

1.5%

6.

IGST on specified defence items imported by private entities/vendors, when end-user is the defence forces.

Applicable Rate

Nil

7.

Transport of goods and passengers by ropeways.

18%

5% (with ITC of services)

8.

Renting of truck/goods carriage where cost of fuel is included

18%

12%

Exemptions being rationalised on Goods/Services*

S. No.

Description

From

To
1. Scientific and technical instruments supplied to public funded research institutes 5% Applicable rate
2. E-waste 5% 18%
3.

Exemption on following services is being withdrawn.

  1. Transportation by rail or a vessel of railway equipment and material.
  2. storage or warehousing of commodities which attract tax (nuts, spices, copra, jaggery, cotton etc.).
  3. Renting of residential dwelling to business entities (registered persons).
  4. Services provided by the cord blood banks by way of preservation of stem cells.
4. Hotel accommodation priced up to Rs. 1000/day shall be taxed at 12%.
5. Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5% without ITC.
6. Tax exemption on training or coaching in recreational activities relating to arts or culture, or sports is being restricted to such services when supplied by an individual.

* To be made effective from 18.07.2022

Agenda for Next GST Council Meeting

  1. GoM on Casino, Race Course and Online Gaming to re-examine the issues based on further inputs from States and submit its report within a short duration.
  2. GoM to be constituted to address various concerns raised by the States on GST Appellate Tribunal and amendments in CGST Act

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