Highlights of the recommendations made at 45th GST council meeting provided below :-

1. COVID-19 related item’s exemption has been extended till 31-12-2021 earlier it was 30-09-2021.
2. IGST on import of following medicines reduced from 12% to NIL, namely:

i. Zolgensma for Spinal Muscular Atrophy

ii. Viltepso for Duchenne Muscular Dystrophy

iii. Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of pharmaceuticals.

3. GST Rate on following goods to be increased. The increase in GST rate will help mines and industries to adjust their ITC accumulated due to inverted duty structure, which was otherwise not eligible for refund.

a. Ores and concentrates of metals such as iron, copper, aluminum, zinc and few others increased from 5% to 18%

b. Specified Renewable Energy Devices and parts from 5% to 12%

c. Cartons, boxes, bags, packing containers of paper etc. from 12/18% to 18%

d. Waste and scrap of polyurethanes and other plastics from 5% to 18%

e. All kinds of pens from 12/18% to 18%

f. Railway parts, locomotives & other goods in Chapter 86 from 12% to 18%

g. Miscellaneous goods of paper like cards, catalogue and printed material (Chapter 49 of tariff) from 12% to 18%

4. GST rate reduced to 5% on Retro fitment kits for vehicles used by the disabled, Fortified Rice Kernels for schemes like ICDS etc, Medicine Keytruda for treatment of cancer and Biodiesel supplied to OMCs for blending with Diesel.

5. Supply of Mentha oil from unregistered person has been brought under reverse charge. Further, Council has also recommended that exports of Mentha oil should be allowed only against LUT and consequential refund of input tax credit. Hence export of mentha oil with payment of IGST and getting refund of the same will not be allowed.

6.  BRICK KILNS would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.

7. Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate of 28% applies only to admission to such facilities that have casinos etc.

8. There is no need to carry the physical copy of tax invoice in cases where invoice has been generated from e-invoice portal having IRN.

9. The GST Rate change to correct the inverted duty structure that was deferred in earlier GST Council Meets will be implemented from 1 January 2022.

10. E-commerce operators Swiggy, Zomato to pay GST on restaurant service supplied through them; tax to be charged at point of delivery.

GST Law and Compliance related recommendations

1. Late fees for GSTR-1 to be auto-populated and collected in GSTR-3B
2. Interest @18% to be recovered on ineligible ITC availed and utilized i.e. if ITC not utilized then Interest cannot be levied.
3. ITC-04 to be filed every 6 months in case Turnover is more than Rs. 5 crores. (In other cases, once a year).
4. Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid
5. Unutilized balance in CGST and IGST cash ledger allowed to be transferred between distinct persons.
6. Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration.
7. Registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month (w.e.f 1 January 2022)
8. To restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B, once Section 16(2)(aa) of The CGST Act 2017 is notified- this amendment shall put an end to provisional ITC of 5%.