32nd GST Council Meeting – Key Takeaways
Watch an In-Depth Analysis of 32nd GST Council Meet by ClearTax GST Expert – CA Surabhi Punshi
Latest Updates
24th June 2022
The 47th GST Council meeting was held on the 28th and 29th of June 2022 in Chandigarh. Union FM Nirmala Sitharaman chaired this meeting and made recommendations to revise rates for revenue augmentation and correction of inversion while pruning the GST exemption list. Compliance relief was granted to e-commerce suppliers and composition taxpayers.
29th December 2021
The 46th GST Council meeting was held on 31st December 2021 in New Delhi. Union FM Nirmala Sitharaman led meeting has decided to defer the GST rate hike to 12% for textiles.
1st September 2021
45th GST Council meeting was held on 17th September 2021. Tax concessions on COVID-19 essentials got extended, Matter on GST compensation to states was taken up, correction of inverted tax structure, etc were on the agenda.
28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.
GST Registration
Basic exemption limit for suppliers of goods will be increased from Rs 20 lakhs to Rs 40 lakhs. However, this limit remains Rs 20 lakhs for suppliers of services. For the special category States, the limit for registration is currently at Rs 10 lakhs. This limit in case of supply of goods is increased up to Rs 20 lakhs and such States have been given an option to either choose Rs 40 lakhs or Rs 20 lakhs threshold limit in a week’s time.
New Composition scheme for Services providers
Those suppliers rendering either independent services or providing a mixed supply of goods & services with a turnover of up to Rs 50 lakhs p.a in the preceding financial year, can join this scheme. The Tax rate is fixed at 6% (3% CGST +3% SGST).
Changes to existing Composition scheme
- Increase in the limit to opt into the scheme will be increased up to Rs 1.5 crore effective from 1st April 2019.
- Tax to be paid Quarterly and GST Returns to be filed annually.
[Note: The effective changes to GST Composition scheme for both suppliers of goods and services will apply from 1st April 2019]
Consensus received for charging calamity cess in Kerala
Kerala has been given an approval to charge Disaster/calamity cess of up to 1% on all the intra-state supplies of goods and services within Kerala, for up to two years
GST Rate cuts
- No changes in GST Rates until Revenue spikes, recommended by the GST council
- No GST rate cut on sale of under construction flats. Instead, a 7 member group of ministers is formed to study the implications of reducing the rates from 12% to 5% on supply of such under construction properties.
- Further, No GST rate cuts on the Private lottery distributions. A Group of ministers will be formed with representatives from developing and selling states
Extension of GST practitioner exam
The last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years.
- Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
GST council recently met on 22nd December 2018. Catch all the highlights of the 31st GST council meeting.
Expectations from the 32nd GST Council Meeting
- To decide whether or not to include the supply of residential properties and supply of services by small service providers, under Composition scheme. A group of ministers(GoM) is looking into the same. As far as the taxability of the residential properties is concerned, there are two proposals tabled before the council. One, where a tax rate of 5% will be levied on the supply of residential properties (under construction) without Input tax credit (by the option of composition scheme). The other, where the tax rate levied will be 8% to keep it at par with the tax rate on affordable housing.
- To deliberate whether or not the tax rates on Lotteries must be 12% or 28% GST Slab for private schemes respectively.
- To take a call on the threshold limit of exemption for MSMEs.
- A committee by Shri Sushil Kumar Modi was set up in the 30th GST Council Meeting. The committee studied the implication of setting up a fund in case of exigencies such as natural disasters, the recent one being the floods in Kerala. They have proposed to introduce ‘Revenue Mobility scheme’ to address the issues. The 32nd GST Council Meeting will be an important one, as it will take a final call on funding natural calamities that have been a serious point of consideration by many Council members for quite some time.
32nd GST Council Meeting Government Press Release
The government press release for 32nd GST Council Meeting is attached below: