[Opinion] Analysis of Recent Changes in GST: 47th GST Council Meeting

CA Dhruvank Parikh – [2022] 140 taxmann.com 330 (Article)

A. Rationalization of Concessional Rate:

1. Withdrawal of Concessional Rate when supplied to the specified institutions (Notification No. 11/2022-Central Tax (Rate) dated 13th July, 2022):

• • By virtue of Notification No. 45/2017-Central Tax (Rate) dated 13th July, 2022, a concessional rate of 5% was available when the following Items were supplied to Public funded research institution or a University or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a Regional Engineering College, other than a hospital, Research institution, other than a hospital, Departments and laboratories of the Central Government and State Governments, other than a hospital and (Regional Cancer Centre (Cancer Institute) (other than (d) below) :

(a) Scientific and technical instruments, apparatus, equipment (including computers);
(b) accessories, parts, consumables and live animals (experimental purpose);
(c) computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches;
(d) Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in financial year.

• • Now Notification No. 11/2022-Central Tax (Rate) dated 13th July, 2022 rescinds the above Notification No. 45/2017-Central Tax (Rate) with effect from 18th July, 2022 and accordingly the concessional rate of 5% shall not be applicable when the above items be supplied to the aforementioned notified institutes and the normal rates (i.e 5%, 12%, 18% or 28% etc) applicable to the product based on tariff when supplied normally to other recipients shall be applied when the supplies be made to such institutes as well.

2. Withdrawal of Concessional Rate in case of Petroleum / Coal Bed Methane (Notification No. 08/2022-Central Tax (Rate) dated 13th July, 2022):

1. • When the goods as listed in Notification No. 03/2017-Central Tax (Rate) and required in connection with:

(1) Petroleum operations undertaken under petroleum exploration licenses or mining leases, granted by the Government of India or any State Government to the Oil and Natural Gas Corporation or Oil India Limited on nomination basis, or
(2) Petroleum operations undertaken under specified contracts, or
(3) Petroleum operations undertaken under specified contracts under the New Exploration Licensing Policy, or
(4) Petroleum operations undertaken under specified contracts under the Marginal Field Policy (MFP), or
(5) Coal bed methane operations undertaken under specified contracts under the Coal Bed Methane Policy
are supplied subject to conditions as mentioned in the said Notification, the applicable rate of GST is 5% which now shall attract 12% GST with effect from 18th July, 2022.

B. Clarification on GST Rate:

1. All fly ash bricks attract same concessional rate irrespective of fly ash content (Notification No. 10/2022-Central Tax (Rate) dated 13th July, 2022)

• • By virtue of Notification No. 02/2022-Central Tax (Rate) dated 31st March, 2022, Fly ash bricks or fly ash aggregate with 90 per cent or more fly ash content and Fly ash blocks falling under Tariff Sub-Heading 6815 along with Bricks of fossil meals or similar siliceous earths falling under Tariff Item 69010010, Building Bricks falling under Tariff 69041000, Earthen or roofing tiles under Tariff Item 69051000 are made liable to GST at the rate of 6% subject to condition that no Input Tax Credit benefit is available for supplies of the above mentioned products.
  • Now by virtue of Notification No. 10/2022-Central Tax (Rate), All fly ash bricks shall attract same concessional rate of 6% irrespective of fly ash content as the said Entry has been substituted with Item – ‘Fly ash bricks; Fly ash aggregates; Fly ash blocks’. The condition of 90% fly ash content with respect to fly ash bricks applies only to fly ash aggregate, and not fly ash bricks. As a simplification measure, the condition of 90% content is being omitted.

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