The 48th GST Council has made recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
Key points
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Decriminalization under GST:
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The Council has recommended to-
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raise the minimum threshold of tax amount for launching prosecution under GST from Rs. One Crore to Rs. Two Crores, except for the offence of issuance of invoices without supply of goods or services or both;
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reduce the compounding amount from the present range of 50% to 150% of tax amount to the range of 25% to 100%;
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decriminalize certain offences specified under clause (g), (j) and (k) of sub-section (1) of section 132 of CGST Act, 2017, viz.-
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obstruction or preventing any officer in discharge of his duties;
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deliberate tempering of material evidence;
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failure to supply the information.
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Refund to unregistered persons;
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Facilitate e-commerce for micro enterprises;
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The Council has recommended to amend sub-rule (1) of rule 37 of CGST Rules, 2017 retrospectively 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.
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The Council recommended to insert Rule 37-A in CGST Rules, 2017 to prescribe the mechanism for reversal of input tax credit by a registered person in the event of non-payment of tax by the supplier by a specified date and mechanism for re-availment of such credit, if the supplier pays tax subsequently. This would ease the process for complying with the condition for availment of input tax credit under section 16(2)(c) of CGST Act, 2017.