Key Highlights of 50th GST Council Meeting
- GTAs can exercise GST under forward charge for a financial year without filing declarations for future years unless they revert to RCM. Such declaration is to be exercised till 31st March of the preceding Financial Year instead of 15th March.
- GST @5% on food served in cinema halls if not part of the combo with movie tickets.
- No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company.
- Goods and Services Tax Appellate Tribunal may be notified by the Centre with effect from 01.08.2023
- The input Services Distributor (ISD) Mechanism is not mandatory for the distribution of input tax credit of common input services procured from third parties to distinct persons as per the present provisions of GST law. An amendment may be made in GST law to make the ISD mechanism mandatory prospectively. Further, clarification on internally generated services between distinct persons is to be given
- The circular is to be issued to provide clarity that no liability or reversal of input tax credit in cases involving warranty replacement of parts and repair services during the warranty period.
- Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B of the said tax period or any previous tax period.
- The balance of input tax credit (ITC) in the electronic credit ledger, under the heads of *IGST, CGST, and SGST taken together*, has to be taken into consideration while calculating interest liability in respect of wrongly availed and utilized IGST credit.
- No GST on merely holding securities of a subsidiary company by a holding company and cannot be treated as a supply of services.
- Issuance of a circular to provide for a similar procedure as in its 48th GST council meeting for verification of input tax credit in cases involving a difference in Input Tax Credit availed in FORM GSTR-3B vis a- vis that available as per FORM GSTR-2A during the period *01.04.2019 to 31.12.2021*.
- Extension of the amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns, revocation of cancellation of registration extended till *31.08.2023*.
- GST rate reduced on the following goods: Uncooked/unfried food pallets from 18% to 5%, fish and soluble paste from 18% to 5%, Imitation zari threads from 12% to 5%, and LD slag from 18% to 5%.
- GST @28% on the face value of bets in case of the casino, horse racing, and online gaming.
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CA Nikhil M Jhanwar
Nikhil M Jhanwar is a practicing Chartered Accountant based in North India having a vast experience of 8 years in taxation advisory/compliances, litigation support, drafting replies to Show Cause Notices, and representing clients before the Department in Indian GST and UAE VAT. He has closely worked on GST implementation in India and UAE VAT implementation in particular impact analysis, regulatory support, implementation support, I.T. support, tax advisory, and compliances. Being a Faculty Member of GST by ICAI, he regularly speaks at forums and seminars on various topics of GST. He is a keen writer and his articles have been published in prominent tax journals and websites.
