Highlights:
1. GST Compensation
Government of India has decided to
clear the entire pending balance GST compensation of Rs. 16,982 crore for
June’2022. Since, there is no amount in the GST compensation Fund, Centre
decided to release this amount from its own resources and the same will be
recouped from the future compensation cess collection. With this release,
Centre would clear the entire provisionally admissible compensation due for
five years as envisaged in the GST (Compensation to States) Act 2017. In
addition, Centre would also clear the admissible final GST compensation to
those States who has provided the revenue figures as certified by the
Accountant General of the States amounting to Rs. 16,524 crore.
2.
GST Appellate Tribunal
The Council adopted the report of
Group of Ministers with certain modifications. The final draft amendments to
the GST laws shall be circulated to Members for their comments. The Chairperson
has been authorised to finalise the same.
3.
Approval of the Report of GoM on
Capacity Based Taxation and Special Composition Scheme in certain Sectors on
GST:
With a view to plug the leakages and
improve the revenue collection from the commodities like pan masala, gutkha,
chewing tobacco, the Council approved the recommendations of the GoM including,
inter alia, that
·
the capacity based levy not to be
prescribed;
·
compliance and tracking measures to
be taken to plug leakages/evasions;
·
exports of such commodities to be
allowed only against LUT with consequential refund of accumulated ITC;
·
compensation cess levied on such
commodities to be changed from ad valorem to specific tax based levy to boost
the first stage collection of the revenue
4.
Measures for facilitation of trade:
1.
Extension of time limit for
application for revocation of cancellation of registration and one time amnesty
for past cases: The Council has recommended amendment in section 30 of CGST
Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that –
·
the time limit for making an
application for revocation of cancellation of registration be increased from 30
days to 90 days;
·
where the registered person fails to
apply for such revocation within 90 days, the said time period may be extended
by the Commissioner or an officer authorised by him in this behalf for a further
period not exceeding 180 days.
2.
Amendment
to Section 62 of CGST Act, 2017 to extend timelines under sub-section (2)
thereof and one time amnesty for past cases: As per sub-section (2) of section
62 of CGST Act, 2017, the best judgment assessment order issued under
sub-section (1) of the said section is deemed to be withdrawn if the relevant
return is filed within 30 days of service of the said assessment order. The
Council recommended to amend section 62 so as to increase the time period for
filing of return for enabling deemed withdrawal of such best judgment
assessment order, from the present 30 days to 60 days, extendable by another 60
days, subject to certain conditions.
3.
Rationalisation
of Late fee for Annual Return: Presently, late fee of Rs 200 per day (Rs 100
CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State
or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual
return in FORM GSTR-9. The Council recommended to rationalise this late fee for
delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for
registered persons having aggregate turnover in a financial year upto Rs 20
crore, as below:
·
Registered
persons having an aggregate turnover of up to Rs. 5 crores in the said
financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum
of an amount calculated at 0.04 per cent. of his turnover in the State or Union
territory (0.02% CGST + 0.02% SGST).
·
Registered
persons having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20
crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST),
subject to a maximum of an amount calculated at 0.04 per cent. of his turnover
in the State or Union territory (0.02% CGST + 0.02% SGST).
4.
Amnesty
in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10: To
provide relief to a large number of taxpayers, the Council recommended amnesty
schemes in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM
GSTR-10 by way of conditional waiver/ reduction of late fee.
