A summary of the decisions taken are presented below –

• It has been decided that Goods Transport Agencies will not be required to file a declaration for paying GST under forward charge every year.

• It has been decided to clarify that 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 or body corporate are not taxable under RCM.

• Relief for taxpayers. The government has extended the special procedure regarding mismatch in ITC availed in GSTR-3B and 2A for two more years i.e., FY 2019-20 and FY 2020-21. (The procedure vide. Circular No.183/15/2022-GST dated 27^th December, 2022 deals with acknowledging some bonafide mistakes and providing safeguards to taxpayers wherein mismatch is not detrimental to the revenue which was earlier governing only FY 2017-18 & 2018-19). To know more, click here.

• Council recommended extending 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, and deemed withdrawal of assessment orders issued under Section 62 of CGST Act, 2017, till 31.08.2023. To know more, click here.

• Amendment in rule 9 and rule 25 to do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant and also to provide for physical verification in high-risk cases even where Aadhaar has been authenticated.

• 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, along with the procedure of auto-compliance on the part of the taxpayers, to explain the reasons for the said difference or take remedial action in respect of such difference. For this purpose, rule 88D and FORM DRC-01C are to be inserted in CGST Rules, 2017, along with an amendment in Rule 59(6) of CGST Rules, 2017. This will help in reducing ITC mismatches and misuse of ITC facilities in GST.

• The supply of food and beverages in cinema halls is now taxable at 5%.

• If the sale of cinema tickets and the supply of food and beverages are clubbed together, then the GST rate of cinema tickets will apply.

• GST Council recommends Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value.

• GST Appellate tribunal will be started in a phase-wise manner.

• Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23.

• Exemption from the filing of Annual Return (in GSTR-9/9A) for taxpayers having aggregate annual turnover upto 2 crores for FY 2022-23.

• 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.

• Detailed 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.

• Refund of accumulated input tax credit (ITC) for a tax period to be restricted to ITC appearing in Form GSTR-2B of the said tax period or any previous tax period.

• To ease the compliance burden of the taxpayers, clause (f) of rule 46 of CGST Rules, 2017 is to be amended to provide for the requirement of only the name of the State of the recipient, and not the name and full address of the recipient, on the tax invoice in case of the supply of taxable services by or through an ECO or by a supplier of OIDAR services to an unregistered recipient.

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