The Union Finance & Corporate Affairs Minister, Smt. Nirmala Sitharaman presided over the 48th meeting of the GST Council, which was held via video conference on December 17, 2022.
At the GST council meeting today, there was no tax increase on any item. GST on online gambling and casinos, according to Revenue Secretary, was not discussed.
Highlights of the decisions are as follows –
- A reduction in the GST rate for pulse husk was announced. Husk tax was earlier 5% but is now 0%.
- GST on Ethyl alcohol or biofuel provided to refineries was reduced to 5% from 18%.
- The GST Council increased the limit for filing a lawsuit from Rs 1 crore to Rs 2 crore.
- The supply of Mentha arvensis was included under the reverse charge mechanism for Mentha Oil.
- The following three offense types were decriminalized at the GST Council Meeting:
- Stopping any officer from the discharge of his responsibilities,
- Deliberate tampering with material evidence, and
- Failure to supply the information
Taxation on tobacco and gutkha could not be discussed in the Meeting due to lack of time.
It was clarified that –
- Rab is classifiable under CTH 1702 and so it will be taxable at 18%.
- Fryums manufactured using the process of extrusion is specifically covered under CTH 19059030 and so they will be taxable at 18%.
- A compensation cess of 22% applies to vehicles that fulfill all four conditions
- popularly known as SUV,
- Engine capacity > 1500 cc
- Length > 4000 mm and
- Ground clearance >= 170 mm
- When a registered person rents a residential property, no GST is due as long as the renter is using the property for his or her own personal use and is not doing so on behalf of a business.
- The Central Government has provided incentives to banks as part of a program to promote RuPay Debit Cards and low-value transactions made through BHIM-UPI. These are in the nature of subsidies and are not taxable.
- When a contract or agreement for the supply of services, such as the construction of a flat or house or a long-term insurance policy, is canceled and the window for the concerned supplier to issue a credit note has passed, there is no procedure for claiming a refund of the tax paid by the unregistered buyers.