Important recommendations of 52nd GST Council Meeting held on 7th October 2023

Amnesty scheme for filing appeals

  • Amnesty scheme for taxable persons who could not file appeal under section 107 of CGST Act. Against demand order under section 73 or 74 of the CGST Act, 2017.
  • Order should be passed before 31st March 2023 or
  • Appeal against such order was rejected solely on the grounds that such appeal was not filed within specified period.
  • Appeal in such cases to be filed before 31st January 2024
  • Pre-deposit of 12.5% of the disputed tax to be paid in that 2.5% should be paid through electronic cash ledger.

Clarifications regarding taxability of personal guarantee offered by directors to banks.

  • Circular to be issued clarifying that when no consideration is paid by the Company to the director in any form, directly or indirectly, for providing personal guarantee to the bank/ financial institution, open market value of said transaction / supply will be treated as zero and no tax to be payable.
  • Sub-rule 2 in Rule 28 to be inserted in CGST Rules, 2017, to provide for taxable value of supply of corporate guarantee provided between related parties as one percent of the amount of such guarantee offered.
  • Circular to clarify that the valuation of such corporate guarantee to the governed by above new inserted sub-rule irrespective of whether full ITC is available to the recipient or not.

Provision of automatic restoration of provisionally attached property after one year

  • GST DRC-22 to provide that order for provisional attachment shall not be valid after expiry of one year from the date of said order.
  •  No separate written odder from commissioner is required.

Clarification of various issues related to place of supply.

  • Circular to be issued to clarify the place of supply in respect of the following services:
  1. Supply of transportation of goods, including by mail or courier, in cases where location of supplier and recipient is outside India.
  2. Supply of advertising services
  3. Supply of co-location services

Circular to be issued clarifying the admissibility of export remittance received in special INR Vostro account permitted by RBI to qualify as export of services.

Allowing supplies to SEZ units / developer for authorized operations for IGST refund route by amending Notification 01/2023 IT dated 31.07.2023.

Liability to pay GST on bus transportation services supplied through electronic commerce operator (ECOM) has been places on ECOM from 01.01.2022, GST council has recommended that bus operators organized as companies may be excluded from the purview, as this will enable them to use ITC.