The 48th GST Council meeting was held on 17th December 2022.
Key Highlights of the 48th GST Council meeting are as follows:
- Increase in threshold limit of initiating prosecution to Rs. 2 crores.
- Reduction in compounding amount from the present range of 50% to 150% to 25%-100%.
- Decriminalization of other offences:
- obstruction or preventing any officer in the discharge of his duties; (Section 132(g)).
- deliberate tempering of material evidence (Section 132(j)).
- failure to supply the information (Section 132(k)).
4. Refund to Unregistered person in certain cases where Unregistered person has to suffer the burden of GST.
5. Extension of date of implementation of sale by the unregistered dealer and composition suppliers on the e-commerce platform.
6. Paras 7, 8(a) and 8(b) were inserted in Schedule III of CGST Act, 2017 with effect from 01.02.2019 to keep certain transactions/ activities, such as supplies of goods from a place outside the taxable territory to another place outside the taxable territory, high sea sales and supply of warehoused goods before their home clearance, outside the purview of GST.
In order to remove the doubts and ambiguities regarding taxability of such transactions/ activities during the period 01.07.2017 to 31.01.2019, the Council has recommended to make the said paras effective from 01.07.2017. However, no refund of tax paid shall be
available in cases where any tax has already been paid in respect of such transactions/ activities during the period 01.07.2017 to 31.01.2019.
7. Insurance companies do not charge GST on No Claim Bonuses.
8. The GST is not payable when a residential dwelling is rented to a registered person if he/she is using it for his/her own residence and not on behalf of a business.
9. GST on pulse husks for cattle feed (including chilka and concentrates) was reduced to nil from 5%. Further, the concessional 5% GST on ethyl alcohol was extended to refineries for blending with petrol, which was earlier charged at 18%.
10. Reversal of Input Tax Credit (ITC) for non-payment of invoice within 180 days:
CGST Rule 37(1) will be amended retrospectively from 1st October 2022 for ITC reversal to provide for reversal of input tax credit as per the second proviso to Section 16 of CGST Act, only to the extent of the invoice amount unpaid to the supplier versus the value of the supply, along with tax payable.
11. New CGST Rule 37A for ITC reversal where the supplier fails to deposit tax.
12. Facility enable to withdraw appeal before finalization.
13. Biometric-based Aadhaar authentication and risk-based physical verification of GST Registrations.
14. Mobile Number and email id to be taken from PAN Database at the time of new GST Registration.
15. Restrict filing of return till 3 years from the due date of filing of return.
16. Treatment of the difference in liability reported in GSTR-1 and GSTR-3B.
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