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December
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Update on GST Council Meeting held on 17.12.2022
GST Council had held 48th GST Council meeting on 17.12.2022 and certain key issues have been discussed. The summary of the discussion has been announced by the GST Council through the press release. The copy of the press release is attached along with this email for quick reference.
Key proposals are summarised below:
- Clarification to be issued to clarify that no GST is payable where the residential dwelling is rented to a registered person if it is rented it in his/her personal capacity for use as his/her own residence and on his own account and not on account of his business.
- The Council recommended amendment in CGST Rules, 2017, along with issuance of a circular, to prescribe the procedure for filing application of refund by the unregistered buyers.
- Transactions in the form of drop shipment, high sea sales and bond to bond sales are included in the third schedule as outside the purview of GST. However, this amendment was made w.e.f. 01.02.2019. Now the proposal has been made to make this change effective retrospectively w.e.f. 01.07.2017.
- The Council has recommended to amend sub-rule (1) of rule 37 of CGST Rules, 2017retrospectively with effect from 01.10.2022 to provide for reversal of input tax credit, in terms of second proviso to section 16 of CGST Act, only proportionate to the amount not paid to the supplier vis a vis the value of the supply, including tax payable.
- Circular to be issued for clarifying the issues pertaining to the place of supply of services of transportation of goods in terms of the proviso to sub-section (8) of section 12 of the IGST Act, 2017 and availability of input tax credit to the recipient of such supply. It has also been recommended that proviso to sub-section (8) of section 12 of the IGST Act, 2017 may be omitted.
- Clarification to be issued to lay down the procedure for verification of input tax credit in cases involving difference in input tax credit availed in FORM GSTR-3B vis a vis that available as per FORM GSTR-2A during FY2017-18 and 2018-19.
Click here to read / download the Press Release.
The above proposed changes have to be brought into effect by the CBIC by issuing the relevant notifications/circulars. We will update the same as and when such notifications/circulars are issued.