Key Recommendations of 48th GST Council Meeting: Press Release

Press Release dated December 17th, 2022

The GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode in New Delhi today. The GST Council in its 48th meeting has made several recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST. The Government has issued press release covering all the recommendations made by the Council. The key recommendations are:

1. The Council recommended amendment in CGST Rules, 2017 to prescribe the procedure for filing application of refund by the unregistered buyers where the contract/ agreement for supply of services, like construction of flat/house and long-term insurance policy, is cancelled.

2. The Council approved the amendments for allowing unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs), subject to certain conditions. The council has recommended that the scheme may be implemented w.e.f. 01-10-2023.

3. The Council has recommended to:

a. Raise the minimum threshold of tax amount for launching prosecution under GST from Rs. 1 Crore to Rs. 2 Crores, except for fake invoice cases

b. Reduce the compounding amount from the present range of 50% to 150% of tax amount to the range of 25% to 100%

c. Decriminalize certain offences namely obstruction or preventing any officer in discharge of his duties; deliberate tempering of material evidence and failure to supply the information.

4. The Council also decided to restrict filing of returns/ statements to a maximum period of three years from the due date of filing of the relevant return / statement.

5. The Council made proposal to conduct a pilot in State of Gujarat for Biometric-based Aadhaar authentication and risk-based physical verification of registration applicants. This is recommended to tackle the menace of fake and fraudulent registration

6. The Council also clarified that:

a. Rab (rab-salawat) is classifiable under CTH 1702 which attracts GST at the rate of 18%

b. Fryums manufactured using the process of extrusion is specifically covered under CTH 19059030 and attract GST at the rate of 18%

c. The higher rate of compensation cess of 22% is applicable to SUVs having engine capacity exceeding 1500 cc, length exceeding 4000mm and a ground clearance of 170 mm or above

d. No GST is payable where the residential dwelling is rented to a registered person if it is rented it in his/her personal capacity for use as his/her own residence and on his own account and not on account of his business

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