GST Council Recommends Changes In GST Rate For Various Goods And Services

The 48th GST Council, presided over by Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs made various recommendations relating to changes in GST rates on the supply of goods and services.The council has exempted the husk of pulses, including chilka, and concentrates, including chuni, churi, and khanda. Early on, 5% GST was payable on the husks of pulses.Due to genuine concerns, the Council decided to regularise the interim period beginning on the date of the Circular's issuance (3.08.2022) in relation to GST on "husk of pulses, including chilka, and concentrates, including chuni/churi, khanda," on an as-is basis.The council has reduced the GST rate from 18% to 5% on ethyl alcohol supplied to refineries for blending with motor spirit (petrol).It was further decided to include the supply of Mentha arvensis under the reverse charge mechanism, as has been done for Mentha oil.No GST is payable where the residential dwelling is rented to a registered person if it is rented in his or her personal capacity for use as his or her own residence and on his or own account and not on account of his business.The Central Government has provided incentives to banks as part of a program to promote RuPay Debit Cards, and low-value transactions made through BHIM-UPI are in the nature of subsidies and are not taxable.The council has clarified that Rab (rab-salawat) is classifiable under CTH 1702, which attracts GST at the rate of 18%. The fryums manufactured using the process of extrusion are specifically covered under CTH 19059030 and attract GST at the rate of 18%. The higher rate of compensation cess of 22% is applicable to a motor vehicle that meets all four conditions, namely, it is popularly known as an SUV, has an engine capacity greater than 1500 cc, a length greater than 4000 mm, and a ground clearance of 170 mm or greater. The goods falling in the lower rate category of 5% under Schedule I of Notification No. 1/2017-CTR imported for petroleum operations will attract the lower rate of 5%, and the rate of 12% shall be applicable only if the general rate is more than 12%.Click Here To Read The Press Release

GST Council Recommends Changes In GST Rate For Various Goods And Services

Mariya Paliwala

Tags