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GST Council Meeting Live
Finance Minister Nirmala Sitharaman is addressing a press conference to announce the decisions taken at the 48th GST Council meeting. Track live updates here:
GST Council Meeting Live: Other Points Covered
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GST not applicable on the rent of a residential dwelling, rented in personal capacity for the use as own residence and not on account of any business.
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Incentive paid to banks by central government under the scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in the nature of subsidy and thus not taxable.
GST Council Meeting Live: Clarifications On GST Applicability
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Rab (rab-salawat) will attracts GST at the rate of 18%.
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Fryums manufactured using the process of extrusion will attract GST at the rate of 18%.
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Goods imported for petroleum operations will attract lower rate of 5% and the rate of 12% shall be applicable only if the general rate is more than 12%.
GST Council Meeting Live: Changes And Additions In Tax Rates
The GST Council has made the following recommendations for changes in GST rates:
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GST on husk of pulses including chilka and concentrates including chuni/churi, khanda; was introduced at 5%.
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GST on ethyl alcohol supplied to refineries for blending with motor spirit (petrol), was raised from 5% to 18%.
The council also decided to include supply of Mentha Arvensis under reverse charge mechanism as has been done for Mentha Oil.
FM Clarifies On Compensation Cess Of 22% On Sports Utility Vehicles
A vehicle is an SUV if:
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The body type is identified as an SUV.
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Engine capacity is higher than 1,500 cc.
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The length of the vehicle is more than 4,000 mm.
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The ground clearance is more than 170 mm.
GST Council Meeting Live: Decriminalisation Under GST
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Decriminalisation of offenses pertaining to the GST law was taken up during the 48th meeting of the GST council.
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The three kind of offenses addressed for decriminalization were; prevention of obstruction; deliberate tempering; and failure to supply information.
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The monetary or threshold limit of tax amount for launching prosecutions in any criminal offenses defined under the GST laws were raised from rupees one crore to two crores, expect on fake invoices.
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It was also announced that the new monetary threshold will be part of the finance bill, after individual states pass it in their assemblies.
GST Council Meeting Live: What Agenda Points Were Covered?
The 48th GST council meet had 15 agenda items to discuss. However the council agreed to end the meeting at 1:40 pm.
Eight out of the 15 points were addressed by the council during the meet. The next agenda points will be carried on to the next meeting.
Both GoMs on capacity based taxation on pan masala and gutta was not taken up, setting up of Goods and Services Tax Appellate Tribunals (GSTATs), also not taken up.
GoM on casinos, horse racing and online gaming wasn't part of agenda of the meeting as report was received late.
Expected Outcome Of 48th GST Council Meeting
The law committee of the GST Council has suggested to increase the monetary threshold for launching prosecution for GST offences.
The fee that a taxpayers pays for GST offences should be lowered to 25% of the tax amount, from up to 150% currently, with a view to improving ease of doing business, the law committee suggested.
The report of the Group of Minister on tax evasion by pan masala and gutkha companies is likely to be taken up for discussion in the Council.
With regard to taxation of online gaming, casinos and horse racing, the GoM had in its last meeting in November agreed on a 28% GST on these segments. However, confusion remains over applicability of GST on online gaming, which may be taken up by the council.
(With Inputs From PTI)
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