48th GST Council Meeting- Key Highlight

The 48th GST Council meeting was held on 17th December 2022, Saturday in New Delhi. The meeting was chaired by the Union Finance Minister Nirmala Sitharaman. Since the 48th GST Council meeting was scheduled after a gap of 5-6 months, it had 15 items agenda for the meeting.

This article is to apprise our readers the recommendations of GST council in its 48th meeting held on 17 December 2022. Key highlights of the meeting as extracted from the press release are as follows:

Key Highlights of the 48th GST Council Meeting

Clarification on GST on renting of residential dwelling

GST is not payable where residential dwelling is rented to a registered person in his/ her personal capacity for use as his/ her own residence and on his account and not on account of his business.

E-Commerce operators to allow the unregistered suppliers and composition scheme dealers to make supply on their platform

Unregistered suppliers and composition taxpayers may be allowed to make intra state supply of goods through e-commerce operators (ECOs), w.e.f. 01.10.2023.

Proportionate GST credit reversal for unpaid amount under Rule 37 of CGST Rules, 2017

Retrospective amendment (w.e.f. 01.10.2022) in CGST Rules to provide that reversal of input tax credit (“ITC”) is required only proportionate to the amount not paid to the supplier (Rule 37 of CGST Rules, 2017).

Insertion of new Rule 37A in CGST Rules, 2017 to provide mechanism for reversal and reavailment of input tax credit

The Council has recommended to insert Rule 37A in CGST Rules, 2017 to prescribe the mechanism for ITC reversals in the event of non-payment of tax by the supplier and re-availement 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.

Circulars to be issued to remove ambiguity on following issues:

  • Procedure for verification of ITC mismatch between GSTR-3B and GSTR-2A for the FY 2017-18 and 2018-19;
  • Applicability of e-invoicing with respect to an entity.
  • Circular to be issued for re-determination of demand if higher authority concludes that show cause notice is not sustainable due to non-establishment of charges of fraud, wilful-misstatement or suppression of facts to evade tax.
  • GSTR-1 to be amended for reporting of supplies made through ECOs (by ECOs and Supplier).
  • New Rule and Form to be inserted to facilitate taxpayers to pay/ explain the reason for difference in tax liability between GSTR-1 and GSTR-3B without intervention of tax officer:
  • Automatic intimation to the taxpayers, if difference of tax liability reported between GSTR-1 and GSTR-3B exceeds specified amount/ percentage for a tax period
  • Enabling taxpayers to pay the differential amount or explain the reason for difference
  • Putting the restriction in filing GSTR-1 for the subsequent tax period if taxpayer has neither paid differential tax nor furnished a reply

The above recommendations would be given effect through relevant Circulars/ Notifications/ Law amendments which alone shall have the force of law.

Press release for 48th Meeting of the GST Council

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