Since the introduction of GST ( Goods and Services Tax ) in India, the GST Council has convened 53 meetings, making important decisions to enhance the implementation and effectiveness of GST across the country.
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The key decisions taken by the council in all these meeting are:
- The fourth GST Council meeting established the four-tier GST rate structure: 5%, 12%, 18%, and 28%. Additionally, the meeting addressed the imposition of an extra cess on luxury and sin goods for items exceeding the 28% rate.
- During the sixth GST Council meeting, members extensively reviewed the model GST laws pertaining to CGST and SGST. By the end of the meeting, the council had finalised 99 out of the 197 sections.
- In the 9th GST Council meeting, the council addressed and resolved issues related to dual control. It was decided that for assessees with a turnover of up to ₹1.5 crore, 90% would be audited by state governments, while 10% would be handled by the central government. For assessees with turnover exceeding ₹1.5 crore, the scrutiny would be split equally between the central and state governments. Additionally, the resolution of any IGST disputes would fall under the jurisdiction of the central government.
- The 17th GST Council meeting, focused on several key issues. Officials extended the deadlines for return filing to September and relaxed the stringent anti-profiteering provisions. The council also revised the GST rates: luxury hotels and state-run lottery tickets were set at 12%, while tickets issued by private entities were set at 28%.
- During the 20th meeting on August 5, 2017, chaired by the Finance Minister, the council initiated the Anti-Profiteering mechanism, reviewed the final draft of the e-way bill, and made several key decisions: job work would be taxed at a 5% GST rate, government contracts at 12%, and GST rates for various services were revised.
- The 21st GST Council meeting was held in Hyderabad on September 9, 2017. Key changes announced included a reduction in GST rates for services provided by local and government authorities from 18% to 12%. Additionally, the cess on mid-sized cars, large cars, and SUVs was increased to 2%, 5%, and 7%, respectively.
- Further, the deadlines for filing GSTR-1, GSTR-2, and GSTR-3 were extended to October 10 (with a due date of October 3 for businesses with a turnover exceeding ₹100 crore), October 31, and October 10, respectively. The deadline for filing GSTR-3B was extended to December 2017, and the registration deadline for the composition scheme was extended to September 30.
- The e-Way Bill mechanism was approved in the 24th GST Council meeting for encouraging self-reporting by businesses. Further, e-Invoices were integrated with e-Way Bill system and GST returns, promoting ease of doing business.
- Under the special scheme introduced for the real estate sector, the Council in its 33rd and 34th meetings approved the reduction of the effective rate from 12% to 5% on non-affordable and from 8% to 1% on affordable housing schemes applicable to properties under construction.
- The GST Council in its 35th Meeting approved the roll out of e-Invoicing system in GST, a digital mechanism for generating and reporting invoices in a standardised format under the GST regime in India. The e-Invoicing threshold has been further reduced and it is made mandatory for firms with annual turnover of ₹5 crore or more to issue e-Invoices for business-to-business supplies from August 1, 2023.
- For promoting green energy initiatives, the GST Council in its 36th Meeting approved the reduction of GST rates on all the electric vehicles from 12% to 5% and exemption from GST for electric buses having occupancy capacity of more than 12 people.
- At its 42nd meeting, the GST Council approved the QRMP ( Quarterly Return Monthly Payment ) scheme for small-scale businesses. Additionally, the council stipulated that businesses with an average turnover exceeding ₹5 crore must use a 6-digit HSN code, while those with an average turnover below ₹5 crore must use a 4-digit HSN code for B2B supplies.
- As a relief measure during COVID-19 pandemic, the Council in its 43rd and 44th Meeting approved the rationalisation of duty on specified COVID related goods
- Simplification and auto-population of GST Returns, making compliance easier for taxpayers.
- Introduction of the dynamic QR code on invoices to facilitate digital payment
- Rate Rationalisation: 227 Items under 28% GST slab reduced to 35 items.
- The GST Council in its 47th Meeting approved certain trade facilitation measures by way of amendment in CGST Rules like change in formula for calculation of refund in inverted duty cases, further waiver of late fees for delay in filing of GSTR-4, additional modes for payment of tax, etc.
- The Council in its 49th meeting approved the creation of the National Bench of the Goods and Services Tax Appellate Tribunal ( GSTAT ).
- With a view to facilitate taxpayers, the Council in its 52nd meeting recommended an amnesty scheme for filing of appeals against demand orders in cases where appeal could not be filed within the specified time period.
- In the 53rd GST council meeting, a mechanism for claiming refunds of additional IGST paid due to upward revision in the price of goods post-export will be prescribed.
- In addition, in the same meeting, the Rule 88B of CGST Rules will be amended to ensure that amounts available in the Electronic Cash Ledger on the due date of filing the return are not included while calculating interest for delayed returns.
- Furthermore, the pre-deposit amount required for filing appeals under GST will be reduced to ease cash flow and working capital for taxpayers. For filing appeals with the appellate authority, the maximum amount will be reduced from Rs. 25 crores ( CGST ) and Rs. 25 crores ( SGST ) to Rs. 20 crores each. For the Appellate Tribunal, it will be reduced from 20% with a maximum of Rs. 50 crores ( CGST and SGST each ) to 10% with a maximum of Rs. 20 crores each.
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