Recommendations of 50th GST Council Meeting

GST Council had it’s 50^th Meeting on 11.07.2023. Pursuant to the meeting, several proposals have been made. Some of the key proposals are given below:

1. Recommends Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value.
2. Recommends notification of GST Appellate Tribunal by the Centre with effect from 01.08.2023.
3. Clarification to be issued 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.
4. Recommends that the 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.
5. Clarification to be issued that ISD mechanism is not mandatory for distribution of ITC as per the present provisions of GST law, and also to clarify issues regarding taxability of internally generated services provided by one distinct person to another distinct person. The Council has also recommended that amendment may be made in GST law to make ISD mechanism mandatory prospectively for distribution of input tax credit of such common input services procured from third parties.
6. 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 warranty period.
7. Clarification regarding the manner of calculation of interest amount liable to be paid under section 50(3) of CGST Act, 2017 in respect of wrongly availed and utilized IGST credit, clarifying inter alia that in cases of wrong availment of IGST credit, the balance of input tax credit (ITC) in electronic credit ledger, under the heads of IGST, CGST and SGST taken together, has to be taken in consideration while calculating such interest liability as per rule 88B of CGST Rules, 2017.
8. Clarification to be issued that mere holding of securities of a subsidiary company by a holding company cannot be treated as a supply of services and therefore, cannot be taxed under GST.
9. Benefit similar to Circular No. 183/15/2022-GST 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 the period 01.04.2019 to 31.12.2021.

Press release containing the list of all proposals enclosed for reference. Please click the below link to read / download the list of proposals.

Recommendations_of_50th_meeting_of_GST_Council

Above proposals have to be brought into effect by issuing the suitable notification/circulars. We shall update as and when such notifications/circulars are issued.

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