Key Recommendations and Decisions:
Changes in GST Rates of Goods:
- Fortified Rice Kernel (FRK): GST rate reduced to 5%.
- Gene Therapy: GST fully exempted.
- LRSAM System: IGST exemption extended to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant for assembly/manufacture.
- Merchant Exporters: Compensation Cess rate reduced to 0.1% on supplies.
- IAEA Inspection Team: IGST exemption on imports of all equipment and consumable samples.
- Food Preparations: Concessional 5% GST rate extended on food inputs supplied for free distribution to economically weaker sections under a government program.
Changes in GST Rates of Services:
- Sponsorship Services: Brought under Forward Charge Mechanism.
- Motor Vehicle Accident Fund: GST exempted on contributions made by general insurance companies from third-party motor vehicle premiums.
- Hotel Services: Definition of declared tariff omitted and linked with actual value of supply. GST rate on restaurant services in hotels dependent on the value of supply of units of accommodation in the preceding financial year.
Other Changes Relating to Goods and Services:
- Old and Used Vehicles: GST rate increased from 12% to 18% on sale of all old and used vehicles, including EVs.
- Autoclaved Aerated Concrete (ACC) Blocks: Clarified to fall under HS 6815 and attract 12% GST.
- Pepper and Raisins: Clarified not liable to GST when supplied by an agriculturist.
- Pre-packaged and Labelled Commodities: Definition amended to cover all commodities intended for retail sale containing not more than 25 kg or 25 liters.
Measures for Facilitation of Trade:
- Schedule III of CGST Act, 2017: Amendment to treat supply of goods warehoused in SEZ/FTWZ as neither supply of goods nor supply of services.
- Taxability of Vouchers: Clarifications issued to resolve ambiguities and legal disputes.
- Input Tax Credit (ITC): Clarifications on the requirement of reversal of ITC by electronic commerce operators and availability of ITC in Ex-Works contracts.
Measures for Streamlining Compliances in GST:
- Track and Trace Mechanism: Enabling provision inserted in CGST Act, 2017 for specified evasion-prone commodities.
- Online Services: Clarification on recording correct details of the name of the State of the unregistered recipient and place of supply.
Other Measures Pertaining to Law & Procedure:
- Section 17(5)(d) of CGST Act, 2017: Amendment to align provisions with the intent of the section (Safari retreats SC judgement effect).
- Sections 107 and 112 of CGST Act, 2017: Amendments to provide for payment of pre-deposit for filing an appeal in respect of an order involving only penalty amount.
- Definitions of Local Fund and Municipal Fund: Explanation inserted under section 2(69) of CGST Act, 2017.
Other Measures:
- IGST Settlement: Recommendations for procedural rules for the internal functioning of the GSTAT.
- Natural Disaster/Calamity Levy: Group of Ministers to examine legal and structural issues and recommend a uniform policy.