The GST Council in their 45th GST Council meeting has issued the following proposals, among others, regarding adjustments in GST rates on goods and services, and also modifications to GST law and procedure:

  • The COVID-19 relief measure in the form of GST rate concessions to Amphotericin B, Remdesivir, Tocilizumab, and anti-coagulants like Heparin has been extended by the GST Council until December 31, 2021. In addition, the Council decided to reduce the GST rate on more Covid-19 treatment medications to 5% until December 31, 2021. 
  • The return must be filed once every six months by taxpayers with an annual aggregate turnover of more than Rs. 5 crores in the previous financial year, according to the council’s ruling. Taxpayers with a yearly aggregate turnover of up to Rs. 5 crores in the previous financial year must file an annual return.
  • Unused balances in the CGST and IGST cash ledgers may be transferred between distinct people (entities with the same PAN but registered in different states), subject to specific protections, without having to go through the refund procedure.
  • Section 50 (3) of the CGST Act to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” rather than “ineligible ITC availed” in the spirit of an earlier Council decision that interest is to be charged only in respect of net cash liability. It has also been determined to levy 18 percent interest on ineligible ITC availed and utilized in such circumstances, effective July 1, 2017.” 
  • GSTR-3B defaulters will not be able to file GSTR-1, according to the Goods and Services Tax (GST) Council’s 45th meeting. With the goal of streamlining GST compliance, the council has decided that if a registered person fails to file a return in FORM GSTR-3B, he will not be allowed to file FORM GSTR-1. The late charge for late submission of FORM GSTR-1 will also be auto-populated and collected in the following open return in FORM GSTR-3B.
  • PAN/Aadhaar would be required for some services under the Goods and Services Tax (GST) regime. According to the GST Council’s resolution, aadhaar authentication for registration will be required for filing refund claims and applications for revocation or cancellation of registration. 
  • The Council has resolved that for the purposes of evaluating a provision of service as an export of services, firms registered under the Companies Act of 2013 and entities registered under the laws of a foreign nation will be treated as two independent entities. A person incorporated in India under the Companies Act, 2013 and a person incorporated under the laws of any other country is to be treated as separate legal entities and are not barred from considering a supply of service as an export of services under condition (v) of sub-section (6) of section 2 of the IGST Act 2017.
  • In the meeting, two GoMs (Group of Ministers) were constituted. One will investigate rate rationalization issues and submit a report within two months. The second GoM will look into E-way bills, Fastags, Technology, compliance, and compensation systems, among other things. In two months, this GoM will also submit a report.
  • Swiggy and Zomato, two online food delivery aggregators, will now be responsible for paying GST, rather than their restaurant partners. Apps that deliver food will now be required to collect and deposit GST with the government. 
  • From January 1, 2022, an inverted duty scheme on footwear and textiles will be corrected. Specific renewable gadgets will now be subject to a 12 percent GST, while pens will now be subject to a single 18 percent GST rate.
  • Goods exported by vessel and air are exempted from GST until September 30, 2022.
  • It was considered whether or not to include petrol and diesel in the GST. However, it was deemed that that now is not the right moment to bring petrol and diesel into the GST system.
  • GST is not applied to training programs for skill development that are fully or partially sponsored by the central and state governments. GST exemption will be granted to programs in which the national govt or a state government covers at least 75% of the cost of training.
  • The National Permit Fee for providing permits to goods carriages to operate throughout India and its surrounding states is now GST-free.
  • Once the proposed clause (aa) of Section 16 (2) of the CGST Act is published, Rule 36(4) of the CGST Rules would be amended. It would limit the amount of ITC available for invoices/debit notes to the degree that the respective suppliers provide the invoice/debit note details in Form GSTR-1/IFF. They should also be reported to the taxpayer on Form GSTR-2B.


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