49th GST Council Meeting Recommendations

1. GST on ‘Rab’ has been reduced from 18% to 5% if sold pre-packaged and labelled, and to nil if sold otherwise.

2. GST on Pencil sharpeners have been reduced from 18% to 12%.

3. Exemption extended to educational institutions and Central and State educational boards for the conduct of entrance examinations to any authority, board, or a body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions.

4. Council has recommended an extension of the time limit for revocation of cancellation of registration from 30 days to 90 days, with an option for a further extension of up to 180 days.

5. New functionality of “Initiating Drop Proceeding” (Automated Drop Proceedings) for suspended GSTINs for non-filing of GST returns has been recommended

6. GST will be applicable on RCM basis on commercial services provided by the Court.

7. Pan Masala and Gutkha will now attract GST on a production basis.

8. An amnesty scheme has also been proposed for cases where registration has been cancelled due to non-filing of returns, in that case there will be not late fee for filing the GST return for the suspension period.

9. To enable the withdrawal of best judgment assessment orders, the time period for filing relevant returns has been increased from 30 days to 60 days, with an option for a further extension of up to 60 days.

10. The late fee for delayed filing of annual returns for registered persons with an aggregate turnover of up to Rs. 20 crores, with the late fee being reduced to Rs 50 per day for those with a turnover of up to Rs. 5 crores and Rs 100 per day for those with a turnover of more than Rs. 5 crores and up to Rs. 20 crores.

11. Amnesty schemes have also been proposed for pending returns in FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10, with conditional waiver or reduction of late fee.

12. Rationalizing the provision of place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 to provide that the place of supply of services of transportation of goods, in cases where the location of the supplier of services or location of the recipient of services is outside India, shall be the location of the recipient of services.