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Dear Professional Colleagues,

Greetings of the Day !

Ministry of Finance issued a Press release dated July 11, 2023, regarding Recommendations of the 50th GST Council Meeting.




1.  Services supplied by a director of a company to the company in his personal capacity (such as supplying services by way of renting of immovable property to the company) are not taxable under RCM. Only those services supplied by a director of company, which are supplied by him in the capacity of director of that company shall be taxable under RCM.


2.  It has been decided to clarify that the supply of food and beverages in cinema halls is taxable as restaurant service as long as they are supplied independently of the cinema exhibition service.


3.  Taxing Casinos, Race Courses and Online Gaming

The GoM, stated that since no consensus could be reached, the GST Council will take the final decision on this matter. Thereby GST Council has recommended the following:

  • Suitable amendments to be made to law to include online gaming and horse racing as taxable actionable claims.
  • All three namely Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28%.
  • Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming.


4.  The Council has recommended the Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules, 2023. The Council also recommended that provisions of Finance Act, 2023 pertaining to GST Appellate Tribunal may be notified by the Centre with effect from 01.08.2023, so that the same can be brought into operation at the earliest.


5.  Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties.


6.  Clarification would be issued regarding taxability of internally generated services provided by one distinct person to another distinct person.


7.  Amendment may be made in GST law to make ISD mechanism mandatory prospectively for distribution of input tax credit of such common input services procured from third parties.


8.  Circular to be issued to provide clarity on various issues pertaining to the GST liability as well as the liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during the warranty period.


9.  In respect of wrongly availed and utilized IGST credit, clarifying inter alia that in cases of wrong availment of IGST credit, the balance of input tax credit (ITC) in electronic credit ledger, under the heads of IGST, CGST and SGST taken together, has to be taken in consideration while calculating such interest liability as per rule 88B.


10.  Clarifying that mere holding of securities of a subsidiary company by a holding company cannot be treated as a supply of services and therefore, cannot be taxed under GST.


11.  Taxpayers will now have an alternate manual mechanism to verify tax credits, where such tax credits are not appearing online. This benefit was earlier available for FY 2017-18 and 2018-19; now, it has been extended till 31.12.2021. This is welcome and would benefit thousands of taxpayers, especially MSME’s.


12.  Special procedure to be provided to enable manual filing of appeal against the orders passed by proper officers in respect of TRAN-1/ TRAN-2 claims of the registered persons, filed in pursuance of the directions of Hon’ble Supreme Court in case of the Union of India v/s Filco Trade Centre Pvt. Ltd.


13.  Procedure for Recovery of Tax and Interest: Rule 88C mandated system-based intimation to the registered person in cases where the output tax liability in terms of FORM GSTR-1 exceeds the output tax liability disclosed in FORM GSTR-3B. Now the Council provides insertion of a FORM GST DRC-01D to provide for manner of recovery of the tax and interest in respect of the amount intimated under rule 88C for which no satisfactory explanation is furnished.


14.  Mechanism to deal with differences in ITC between FORM GSTR-2B and FORM GSTR-3B: The Council has recommended a mechanism for system-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B above a certain threshold. For this purpose, rule 88D and FORM DRC-01C to be inserted.


15.  Monthly return filings change for OIDAR service providers. They would now provide the details of supplies made to registered persons in India in their montly FORM GSTR-5A.


16.  The Council has recommended insertion of a new clause to clarify the place of supply in respect of supply of goods to unregistered persons. This may have some impact on companies undertaking supplies of in B2C manner.

Hope you find it interesting and useful to read.

For any clarification/ feedback, feel free to write us at

Best regards,



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