In the 50th meeting of the GST Council, a number of recommendations have been made to GST tax rates, measures for facilitation of trade and steps for streamlining compliances in GST. The GST Council has recommended Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value. Similarly, it has recommended notification of GST Appellate Tribunal by the Centre with effect from 01.08.2023.
Furthermore, the GST Council recommended exemption of cancer-related drugs, medicines for rare diseases and food products for special medical purposes from GST tax. It has also recommended bringing down rates from 18 percent to 5 percent on 4 items- uncooked, unfried and extruded snack palettes, fish soluble paste, LD slag to be at par with blast furnace slag and imitation zari thread. The Council has also recommended several measures for streamlining compliances in GST.
The 50th meeting of the Goods and Services Tax (GST) Council was held in Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Nirmala Sitharaman. To mark the milestone of 50th meeting, Chairperson released a short video film titled ‘GST Council- 50 steps towards a journey’ in the august presence of the members of the Council, which depicts the journey of the GST Council and has been made in Hindi, English and 11 regional languages.
It has been decided to reduce the rate on uncooked or unfried snack pellets to 5% and to regularise payment of GST on uncooked or unfried snack pellets during the past period on “as is basis”. It has also been decided to exempt IGST on Dinutuximab (Quarziba) medicine when imported for personal use.
It has been decided to exempt IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases enlisted under the National Policy for Rare Diseases, 2021, when imported for personal use subject to existing conditions. Similarly, IGST exemption is also being extended to FSMP when imported by Centres of Excellence for Rare Diseases or any person or institution on recommendation of any of the listed Centres of Excellence.
In the meeting, it has been decided to clarify that supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism and to regularise issues relating for the past period on “as is basis”. It has been decided to reduce GST on imitation zari thread or yarn known by any name in trade parlance from 12% to 5% and to regularize payment of GST related to this matter during the past period on “as is basis”.
The GST Council has also decided to amend the entry 52B in compensation cess notification to include all utility vehicles by whatever name called provided they meet the parameters of length exceeding 4000 mm, engine capacity exceeding 1500 cc and having Ground Clearance of 170 mm & above and to clarify by way of explanation that ‘Ground clearance’ means Ground Clearance in un-laden condition.
In the meeting, it has been decided to reduce GST rate on LD slag from 18% to 5% to encourage better utilisation of this product and for protection of environment. It has been decided to regularise the matters relating to trauma, spine and arthroplasty implants for the period prior to 18.07.2022 on “as is basis” in view of genuine interpretational issues.
It has been decided to reduce the GST rate on fish soluble paste from 18% to 5% and to regularise payment of GST on fish soluble paste during the past period on “as is basis”. It has been decided to regularise the matters relating to dessicated coconut for the period 1.7.2017 to 27.7.2017 on “as is basis” in view of genuine interpretational issues.
In this high profile meeting, it has also been decided that on pan masala, tobacco products etc, where it is not legally required to declare the retail sale price, the earlier ad valorem rate as was applicable on 31st March 2023 may be notified in order for levy of Compensation Cess.
Similarly, it has also been decided to include RBL Bank and ICBC bank in the list of specified banks for which IGST exemption is available on imports of gold, silver or platinum and update the list banks or such entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023. Besides, a number of other decisions have also been taken.
