From Our Bureau
NEW DELHI: The 48th GST (Goods and Services Tax) Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, on Saturday ended without increasing the tax on any item and even seven agenda items, including tax on Tobacco and Gutka and the GoM report on setting up of the GST Appellate Tribunal, could not be taken up due to paucity of time.
She told a Press conference that these pending items will be taken up at the next GST council meeting to be held as in-peson meeting. “We are trying to take up the GST tribunal issue at the earliest possible,” she said.
The meeting was wound up at 1.30 PM as most of the state finance ministers, who are members of the GST council, had other engagements. It agreed to decriminalise certain offences and doubled the threshold for launching prosecution to ₹2 crore, Revenue Secretary Sanjay Malhotra said.
ONLINE GAMING, CASINO: He said GST on online gaming and casinos was not discussed as the report of a Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, on the issue submitted its report only a couple of days back.
Sitharaman said all that could be done in the meeting is to issue clarifications where ambiguity of interpretations prevails.
“All that was discussed were the fitment committee’s recommendations on many items where there is confusion of rates. In the case of SUVs, we have clarified that the higher rate of 22% compensation cess is applicable to motor vehicles fulfilling four conditions, namely poplarly known as an SUV and has the engine capacity of 1500 cc, length beyond 4,000 milimetres and ground clearance of 170 mm.”
“But even as we brought in this clarification, there was a request to add to this MUVs. What has been agreed by the Council is this clarification goes ahead but if anything has to be added on to this 22% cess rate, the Fitment Commitee will look into it. This whole question arose when some asked if sedans are also included in this,” said Sitharaman.
The Council has recommended to raise the minimum threshold of tax amount for launching prosecution under GST from Rs. One Crore to Rs. Two Crores, except for the offence of issuance of invoices without supply of goods or services or both;
To reduce the compounding amount from the present range of 50% to 150% of tax amount to the range of 25% to 100%;
To decriminalize certain offences specified under clause (g), (j) and (k) of sub-section (1) of section 132 of CGST Act, 2017, viz.-
obstruction or preventing any officer in discharge of his duties;
deliberate tempering of material evidence;
failure to supply the information.
TAX RATES: The tax on husk of pulses, including chhilka, churi and Khanda reduced from 5% to nil, while the tax on the ethyl alcohol to the refineries for blending with petrol reduced from 18% to 5%.
RENT: 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.
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
Circular to be issued to clarify that No Claim Bonus offered by the insurance companies to the insured is an admissible deduction for valuation of insurance services.
