47th GST Council meeting

Other decisions
  More clarification will be been given for allowing money in electronic credit ledger
and electronic cash ledger to be used to pay output tax dues in returns; Such amounts
cannot be used to pay off penalties, late fee and interest
 The GST Council to form a Group of Ministers (GoM) to consider setting up GST
Appellate Tribunals after a detailed study of its structure.
 A comprehensive review of the National Anti-profiteering Authority(NAA).
 Solicitor General to defend cases before NAA where its constitutional validity is
questionable.
 The government may soon appeal in SC cases where NAA has been remanded by
state HC against the orders.
 NAA has set up an advocates panel to ensure justice to consumers where profiteering
has occurred.
 GST Council approves waiver from the filing of refund claims by condoning the two-
year COVID period from 1st March 2020 to 28th February 2022. Council decides to
permit tax authorities to file appeals against erroneous refunds by not considering the
two-year period
 Ease in refund claims for export of electricity and select concessional goods with an
inverted tax structure.
 GST Network may set up AI/ML-based systems to cross-check the antecedents of the
GST registration applicants and improved risk-based monitoring of their behaviour
post-registration so that non-compliant taxpayers can be identified at the nascent stage
and actions be taken so as to minimise revenue losses.
 A decision was taken to defer the implementation of the GST margin scheme for tour
operators after studying it in detail.

Expectations from 47th GST Council meeting

Modifications in GSTR-3B for better ITC reporting
The GST Council may propose changes to Form GSTR-3B and its reporting. The move aims
to fasten the Input Tax Credit (ITC) settlement wherever genuine while curbing any fake ITC
claims.
As per the sources, the revised GSTR-3B format would allow reporting of the gross ITC
available for claims to the taxpayer, the ITC claimed during the tax period and the net ITC in
the electronic credit ledger of the taxpayer.

Correction of the inverted tax structure of certain items

The Group of Ministers (GoM) for GST rate rationalisation are expected to submit an interim
report at the GST Council meeting. The report may propose corrective actions to address the
inverted tax structure for some products such as writing, printing or drawing ink, LED lights,
lamps and fixtures bearing tax rates from 12% to 18%. Whereas some rates may be increased
from 12% to 18% for correction of inversion. The edible oil could not be allowed any
accumulated ITC refund despite the inverted tax structure.

Crypto taxation under GST

The GST Council plans to effectively clarify the taxation of cryptos under GST to track
various digital asset transactions. Even though a GST rate may not be fixed in this meeting,
exchanges and traders may get clarity on whether or not such crypto transactions could be
placed in the highest slab of 28%. But the Fitment Committee desires to dig deeper into this
matter and is therefore enquiring with the state governments of Karnataka and Haryana for an
exhaustive paper for the GST charges on crypto activities.

GST rate changes and the trimming of the GST exemption list
According to the initial report of the GoM, which the chief minister of Karnataka leads, the
GST Council’s choices should be carefully considered and sensitive to the general people’s
needs, particularly when reducing the list of GST exemptions.

Until now, the Fitment Committee has rejected rate revision for the 113 commodities but
accepted rate modifications for 14 goods and 22 services.
Bread, kitchenware, tractors, hearing aids, educational institutions, and incense sticks may
receive a complete exemption. The exemption on products including honey, food grains,
flattened rice, parched rice, puffed rice, cereals, jaggery, packaged curd, lassi, buttermilk,
paneer, pappad, and some vegetables may be gradually removed by the Council.

Services provided by the IRDA to insurers, FSSAI to food business operators about
registration, SEBI, and the RBI are among the things that may no longer be excluded from
GST. The Fitment Committee has proposed that certain defence equipment imported by
private parties for national defence purposes be free from basic customs duty and IGST.

Other Expectations
 Clarity regarding the ITC refund to duty-free stores.
 Waiver from the March 1, 2020 to February 28, 2022 deadlines for refund
applications under GST.
 Further extension of the GSTR-4 filing deadline for FY 2021–22 to July 28, 2022,
from June 30, 2022.
 Extension of the CMP-08 filing deadline from July 18 to July 30 for June 30, 2022.
 States may demand a minimum 2 to a 3-year extension of the compensation
timeframe.
 The GST Council may present a thorough report on the National Anti-Profiteering
Authority (NAA) and the current open cases for further consideration.
 The Centre and states may be given the authority to issue show-cause notices, and the
GST Council may also consider the compliance difficulties that e-commerce sellers
face.
 Approval of an additional e-invoice portal or Invoice Registration Portal (IRP).
 Proposal to introduce a new margin scheme for tour and hospitality industry.

The GST Council previously met for the 46th GST Council meeting on 31st December 2021.