Extending GST Amnesty Scheme

It is indeed a welcome decision taken by GST_Council for taxpayers by extending GST Amnesty Scheme.

Important Decisions in the 50th gst council meeting

1.     Transporters will not be required to file declaration for paying GST under forward charge every year

2.  No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company

3.  Relief for taxpayer, Govt extended the special procedure regarding mismatch in ITC availed in GSTR-3B and 2A for two more years i.e 2019-20 and 2020-21

4.  Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns, revocation of cancellation of registration extended till 31.08.2023

5. To do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant

6.  To provide for physical verification in high risk cases even where Aadhaar has been authenticated.

7.     System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B

8.     Supply of food and beverages in cinema halls is taxable at 5%

9.     If the sale of cinema ticket and supply of food and beverages clubbed together then gst rate of cinema ticket will apply

10.  28% GST on the value of the chips purchased in casinos

11.  28% GST on the full value of the bets placed in Online Gaming

12.  GST Appellate tribunal will be started in a phased manner

13.  Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23

14.  No GSTR-9 for turnover upto 2 crores

15.  Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory prospectively

16.  Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period

17.  Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B

18.  Only Name of state on tax invoice, not the name and full address of the recipient, in cases of supply of taxable services by or through an ECO

Here are the four items on which GST council has cut rates

• GST on uncooked snack pellets and fish soluble paste has been cut from 18 per cent to 5 per cent.
• GST on LD slag and fly ash has also been cut from 18 per cent to 5 per cent.
• GST on imitation Zari thread/yarn has been cut to 5 per cent from 12 per cent.
• Exemption from 12 per cent IGST on cancer related drugs, food products for special medical purpose.

While on one hand the GST council has decided to increase GST to 28 per cent on online gaming, casino and horse racing on full value, on the other, the council has also decided to provide exemption from 12 per cent IGST on certain categories of cancer drugs. In its meeting, the GST council has also decided to charge 5 per cent GST on Food and beverage sold in Cinema halls.

These are the other key points from the press conference

Clarification will be issued for 5 items with respect to tax

Raw Cotton sold to cooperatives will attract GST

Consensus on GOM report reached after long discussion.

Online gaming, casino and Horse racing will attract uniform 28 per cent GST.

Amendments will be made in GST Law to include online gaming.

GST Council exempts private satellite launch services

GST will be levied at 28 per cent rate irrespective of nature of games; be it game of chance or skill.

Online gaming and casino will be brought under actionable claim.