1. GST compensation:

i. Government of India has decided to clear the entire pending balance GST compensation of Rs. 16,982 crores for June 2022 from the resources of the Centre.

2. GST appellate tribunal:

i. GoM on GST appellate tribunal was considered with some modifications, which will be re-drafted and circulated with members of the GST Council for approval.

3. Recommendations of the GoM on the following have been accepted to plug tax leakage and improve revenue collection for certain products like chewing tobacco, gutkha, pan masala, etc.:

i. Capacity based levy not to be prescribed.

ii. Compliance and tracking measures to be taken to plug leakages/evasions.

iii. Exports to be allowed only against LUT with consequential refund of accumulated ITC.

iv. Compensation Cess levied to be changed from ad valorem to specific tax based levy to boost first stage revenue collection.

4. Changes in GST rates of Goods:

i. To reduce the GST rate on Rab from 18% to 5% if sold pre-packaged and labelled or Nil if sold otherwise.

ii. To reduce the GST rate on Pencil Sharpeners from 18% to 12%.

5. Other Changes relating to GST:

i. No separate IGST shall be levied on tag-tracking or data logger devices in case where such devices are already affixed on the container.

ii. Decided to amend the entry at Sl. No.41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit will be covered for both coal rejects supplied to and by a coal washery and no input tax credit thereof has been availed by any person.

iii. Services by courts and tribunals to be taxed under RCM – Renting of premises by registries of courts/tribunals for commercial use to local bodies will attract RCM.

iv. Exemption is granted to educational institutions and Central and State educational boards for conducting entrance exams to any authority, board or a body set up by the CG or SG including National Testing Agency (NTA) for entrance exams for admission to educational institutions.

6. Measures for facilitation of trade:

A. Extension of time limit:

a) Section 30 of the CGST Act, 2017 and Rule 23 of the CGST Rules, 2017 are to be amended to increase the time limit for making an application for revocation of cancellation of registration from 30 days to 90 days, extendable by another 180 days thereof. Further, a one-time amnesty may be provided for past cases, where registration has been cancelled due to non- filing of the returns. Still, an application for revocation of cancellation could not be filed within the specified time limit.

b) Section 62 of the CGST Act, 2017 is to be amended to increase the time period for filing returns for deemed withdrawal of best judgment assessment orders from 30 to 60 days, extendable by another 60 days thereof and a one-time amnesty would be available for past

B. cases where returns could not be filed within 30 days of the assessment order. B. Reduction in late fee for delay in filing GSTR 9 from FY 2022-23 onwards:

a) For a registered person having an aggregate turnover of up to Rs. 5 crores: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of 0.04% of his turnover in the State (0.02% CGST +0.02% SGST).

b) A registered person having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of 0.04% of his turnover in the State (0.02% CGST +0.02% SGST).

C. GST Amnesty Scheme  in respect of pending returns in Form GSTR-4, GSTR-9 and GSTR-10 by way of conditional waiver/ reduction of late fee.

D. Rationalization of provision of Place Of supply of Services of Transportation of Goods:

Deletion of section 13(9) of IGST Act, 2017 resulting in – the place of supply of services of transportation of goods, in cases where the location of supplier of services or location of the recipient of services is outside India, shall be the location of the recipient of services.