52nd GST Council Meeting – GST Amnesty Scheme & Major Changes in Rates of Goods and Services

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52nd GST Council Meeting – GST Amnesty Scheme & Major Changes in Rates of Goods and Services

The 52nd GST Council Meeting was held on October 7th, 2023 at Sushma Swaraj Bhawan, New Delhi. This meeting is held about two months after the 51st GST Council meeting on August 2nd, 2023. The chairperson of the meeting was Union Finance & Corporate Finance Minister Smt. Nirmala Sitharaman. In the meeting, different recommendations were made, read the key changes in the GST and about the new GST amnesty scheme.

Change in GST Rates of Goods and Services

The following are the changes that are recommended by the GST Council in the 52nd GST Council meeting:

1. Millet Flour

Zero rate is recommended for food preparation of millet flour in powder form and in any form which contains at least 70% millets by weight. The zero rate will be applied only when sold in the loose form. The 5% rate will be charged if sold in pre-packaged and labelled form.

2. Imitation Zari

The 5% GST rate will be charged on imitation zari thread or yarn made out of metallised polyester film or plastic film. Also, no refund will be allowed on the polyester film/ plastic film on account of inversion.

3. Extra Neutral Alcohol

The Extra Neutral Alcohol (ENA) which is used for the manufacture of liquor for human consumption should be kept outside the GST. Also, the Law Committee will examine suitable amendments in the law to exclude ENA. For use in the manufacture of alcoholic liquor for human consumption from the ambit of GST.

4. Molasses

Reduce of GST on molasses from 28% to 5%. In this step, the liquidity with the mills will increase and help in faster clearance of cane dues to sugarcane farmers. Also, this reduces the cost of manufacturing cattle feed as molasses is an important ingredient of this manufacturing.

5. Services

These services of water supply, public health, sanitation conservancy, solid waste management and slum improvement and upgradation are supplied to Governmental Authorities. So, the GST rate of 5% is applicable on the job work services for processing barley into malt. The GST rate is 5%, not 18%.

What is the GST Amnesty Scheme 2023?

In the meeting, Revenue Secretary Sanjay Malhotra announced the amnesty scheme.  Under this scheme, taxpayers are allowed to file of appeal against demand orders in cases where an appeal could not be filed within the allowable time period. 

According to the council, the amnesty scheme 2023 is provided through a special procedure under section 148 of the CGST Act, 2017 for taxable persons. Under this the following things will include: 

• Those who cannot file an appeal under section 107 of the said Act, against the demand order. Under section 73 or 74 of the CGST Act, 2017 passed on or before the 31st day of March 2023.
• Those who appealed against the said order were rejected solely on the grounds.  The said appeal was not filed within the time period specified in sub-section (1) of section 107.

So, in all these cases, the filing of appeal by the taxpayers is allowed against the orders upto 31st January 2024. The condition of payment of pre-deposit of 12.5% of the tax is under dispute. Out of this, at least 20% should debited from the Electronic Cash Ledger. However, this will facilitate a large number of taxpayers, who could not file appeals in the past within the specified time period. This GST amnesty scheme for taxpayers will be beneficial. 

Final Takeaway

With all the new changes, another GST Council meeting ends. In this 52nd GST council meeting different modifications in rates, and clarifications were issued. However, some expectations were met or some were even surpassed. These GST Council meetings should done at continued intervals as it is essential and helps in providing different opportunities to the states.

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