47th GST Council Meeting: Key Decisions 

Introduction 

India’s ambitious Goods and Services Tax (GST) marked the completion of five years on 1st July 2022.  47th GST Council meeting scheduled at Chandigarh on the same week for two days- 28th and 29th June 2022. In the presence of the Minister of State For Finance and State ministers including the MOF (State) sh. Pankaj Chaudhary meeting conducted by Smt. Nirmala Sitharaman. And Finance Minister also announced that the 48th Meeting of GST Council is expected to be held in Madurai, Tamil Nadu during the 1st week of August 2022. This meeting includes the setting up of the GST Appellate Tribunals and fixing the GST rate on the casino, online gaming, etc. which is based on the GOM’s report.

GST Council 

After inserting article 279A (1) of the constitution, GST Council was formed in 2016 to implement the Goods and Services Tax (GST) which is the highest decision-making body for the indirect tax regime in the country. It is governed by the Union Finance Minister and another representative of all states and U.T. The Revenue secretary is the ex- officio secretary to the GST Council and the Secretariat office which is located in New Delhi. The GST Council makes guidelines on issues that are related to GST, like the Goods and services that may be subjected or exempted from GST, model GST Laws, principles, to the Union and the States that govern the place of supply, threshold limits, GST rates which includes the floor rates with bands, special rates for raising additional resources during natural calamities/ disasters and made some special provisions for certain states.

The GST Council recommended on the three-fourth majority of the members present and vote. The central govt.’s vote counts as one- third and other states’ total votes are two-thirds.

GST Council’s Recommendations Binding on Govt. or not 

In the latest ruling, Last month The Supreme Court said that The GST Council is the only recommendatory body and it is not a recommendation binding on the center or state. The apex court said that the GST Council’s recommendations will have a “convincing value” and Parliament and state legislature can equally make laws related to GST.

Highlights of the 47th GST Council meeting

Finance Minister held the two days conference in Chandigarh. Four groups of Reports were discussed at the 47th GST Council meeting. The reports include- 

• Interim report on rate rationalization, exemptions, and correction of inversion nature

• Betting, gambling, and online gaming 

• IT-related matters

• Movement of cherished  items such as gold, etc

47th GST Council Meetings:  Expected key decisions 

47th GST Council meeting will take place in Chandigarh on 28-29th June 2022. The meeting will be headed by Union Finance Minister Smt. Nirmala Sitharaman. It will cover representatives of all states and Union Territories. The GST Council conducts the meeting for two days. The Council made some changes in goods and services tax rates on certain items. It will be the first meeting of the year. Expected key decisions which are taken in this meeting are given below:-

• To take the decisions on certain changes to GST Returns so as to stop Fake ITC

• Discussion with states on the growing tenure of 14% growth in Revenue

• Amended to GST Returns

• Introduced 28% Tax on Virtual Digital Assets 

• Issue the Dual Show Cause Notices (SCN) to State & Central both.

• Take Decisions on Improving current GST Returns system

• 28% GST on Online Games, Horse Race, and Casino

• The issue  resolved on Inverted Duty Structure

Relief to e-commerce suppliers

• GST Council agreed to ease to concurrence hindrance for e-commerce suppliers.

• It allowed the e-commerce suppliers to register under the composition scheme for intrastate supplies conciliation their registration inconvenience and for reducing tax outgo.

• The new composition scheme for e-commerce suppliers to online sales for intrastate will be implemented on 1st Jan 2023 when the IT system is set up.

• If their turnover does not exceed the limit of Rs.40 Lakh (goods) or Rs.20 Lakh (services) or such lower limits defined for some states/UTs it means that such instance e-commerce suppliers will no longer be obligated to obtain the mandatory GST registration.

• Interstate suppliers on e-commerce platforms shall have to obtain registration irrespective of turnover, compulsorily.

Conclusion 

It concluded that GST Council was formed in 2016 to implement the Goods and Services Tax (GST) which is the highest decision-making body for the indirect tax regime in the country. It is governed by the Union Finance Minister and another representative of all states and the U.T. 47th GST Council meeting will take place in Chandigarh on 28-29th June 2022. The meeting will be headed by Union Finance Minister Smt. Nirmala Sitharaman. It will cover representatives of all states and Union Territories. The GST Council conducts the meeting for two days. The Council made some changes in goods and services tax rates on certain items.

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Author:

Radhika Punani
Ambala
I am Radhika from Ambala city. I qualified LLM from Kurukshetra University and B.A.LLB from Maharishi Markandeshwar University