On July 11, 2023, the Goods and Services Tax Council, headed by Finance Minister Nirmala Sitharaman, convened for the 50th time in New Delhi. The council evaluated a wide range of modifications in tax rates for certain commodities and services. The Council also suggested the formation of the GST Appellate Tribunal and ways to simplify GST compliance for businesses and individual sellers.
MPVD & Associates, a leading CA Firm and GST Consulting Company in Kolkata aims to spread awareness about the key amendments made to the CGST notifications. The key decisions taken at the meeting are listed below:
- To increase the GST rate in the casino and gambling businesses, including horse racing, internet casinos, and all types of skill-based and luck-based gaming, from 18% to 28%. On the entire face value, the tax will be charged at a uniform rate.
- The Council suggests that cancer-related pharmaceuticals, medicines for rare disorders, and food goods for particular medical uses be excluded from GST.
- There are recommendations to reduce the present tax rate of 18% to 5% on four items: uncooked, unfried, and extruded snack palettes; fish soluble paste; LD slag to be on par with blast furnace slag; and fake zari thread.
- In addition, the GST council has decided to amend entry 52B in the compensatory cess from 20% to 22% to cover all utility vehicles, like SUVs and MUVs, and all other vehicles that have the following parameters:
- Length of more than 4000 mm
- Engine displacement in excess of 1500 cc
- Unladen ground clearance of 170 mm or more.
- The GST Council also suggests many steps to simplify compliance.
These are only some of the key decisions that were highlighted in the meeting. There are several other small amendments applied for both goods and services. We urge businesses to get in touch for in-depth and tailored GST consulting services for industry-specific queries.
The GST Appellate Tribunal
The Council further suggested that the provisions of the Finance Act, 2023, related to the GST Appellate Tribunal be published by the Government with effect from August 1, 2023.
The regulations governing the nomination and conditions of the President and Members of the proposed GST Appellate Tribunal facilitate the GST’s smooth constitution and operation as more of an appellate body hearing appeals against subordinate authorities’ judgements and orders.
As per Section 110(4)(b)(iii) of the CGST Act 2017, the Chief Secretary of Maharashtra is first nominated as one of the members of the Search and selection committee. In terms of the number of State Benches, it was agreed to introduce them gradually.
New Mechanism to Differentiate ITC Claims
The GST Council is expected to approve a new provision under GST law requiring enterprises to explain the reasons for excess input tax credit (ITC) claims or deposit the money with the exchequer.
A new auto-compliance procedure will be established to handle the excess availing of ITC in FORM GSTR-3B against that provided in FORM GSTR-2B. It will apply over a specific threshold and enforce an automated, system-generated notice mechanism for taxpayers.
Rule 88D and Form DRC-01C will be added to the CGST Regulations, along with an adjustment to Rule 59(6). This would assist in eliminating ITC mismatches and exploitation of the GST ITC programme. The taxpayers would need to provide justification for the difference in price or take corrective action.
Maintain A Positive Perspective On New Amendments and Stay Informed With MPVD & Associates GST Consulting Firm.
The GST Council is more focused than ever on dealing with fraudsters and tax evaders who utilise creative tactics to cheat the system and harm the exchequer. Yet, companies may not be aware of some issues, and failing to comply is typically the consequence of ignorance rather than deliberate tax fraud.
MPVD & Associates GST consultancy in Kolkata simplifies GST filing and returns and assists companies and sellers in maintaining a favourable attitude towards the system.
We are committed to providing you with thorough and up-to-date GST consulting services that will assist you in smoothly traversing the complexity of taxation. You may remain up to speed on the newest GST legislation, revisions, and compliance needs by working with our team of seasoned specialists. Accept the prospects that come with a positive mindset as we solve your Tax concerns. We’ll pave the way for your company’s growth and profitability by working together.