48th GST Council: Hits and Misses

The 48th GST Council meeting was held on December 22, 2021, and it made some important decisions. Here are the hits and misses of the meeting:

Hits:

1. The GST Council reduced the GST rates on various COVID-19 related items such as hand sanitizers, hand gloves, face masks, and pulse oximeters. The rates were reduced from 12% to 5%, making these items more affordable for people.The GST Council exempted the import of COVID-19 related goods such as oxygen concentrators, medical-grade oxygen, and ventilators from IGST till December 31, 2021. This move will reduce the cost of these goods and make them more accessible to the people.

2. The Council also reduced the GST rate on electric vehicles (EVs) from 12% to 5%. This move is expected to boost the adoption of EVs and promote green mobility.The Council also reduced the GST rates on solar inverters from 5% to 2.5% and on solar lanterns from 5% to 1.5%. This will promote the use of solar energy and contribute to the government's goal of achieving 100 GW of solar power capacity by 2022.

3. The Council decided to extend the due date for filing annual returns for the financial year 2020-21 to March 31, 2022. This will provide relief to taxpayers who were facing difficulties in complying with the due date.The Council decided to extend the time limit for availing ITC (Input Tax Credit) for the financial year 2020-21 to March 31, 2022. This will provide relief to taxpayers who were facing difficulties in claiming ITC within the earlier time limit.

4. The Council approved the formation of a GoM (Group of Ministers) to review the GST rate structure and suggest measures to streamline the GST system. This is a positive step towards making GST more simple and taxpayer-friendly.

Misses:

1. The GST Council did not make any decision on the inclusion of petroleum products and natural gas under the GST regime. This has been a long-standing demand of the industry, and it is disappointing that no decision was made on this issue.

2. The Council also did not announce any relief measures for sectors such as hospitality, tourism, and aviation, which have been severely impacted by the COVID-19 pandemic.

3. The Council did not decide on the compensation to be paid to the states for the shortfall in GST revenue collection. This issue has been pending for a long time, and the delay in decision-making is causing uncertainty among the states.

In conclusion, while the reduction in GST rates on COVID-19 related items and EVs are positive steps, the lack of decisions on key issues such as the inclusion of petroleum products and natural gas under the GST regime and compensation to the states for revenue shortfall is a cause for concern. The formation of a GoM to review the GST rate structure is a positive step, and we hope that the Council will take more such measures to streamline the GST system and make it more taxpayer-friendly.

FAQs

Sure, here are some FAQs related to the 48th GST Council meeting:

Q: What was the date of the 48th GST Council meeting?

A: The 48th GST Council meeting was held on December 22, 2021.

Q: What were the key decisions taken at the 48th GST Council meeting?

A: The key decisions taken at the 48th GST Council meeting were the reduction in GST rates on COVID-19 related items, electric vehicles, and solar inverters and lanterns, the exemption of IGST on import of COVID-19 related goods, the extension of the due date for filing annual returns and availing ITC, and the approval of the formation of a GoM to review the GST rate structure.

Q: Was there any decision made on the inclusion of petroleum products and natural gas under the GST regime?

A: No, there was no decision made on the inclusion of petroleum products and natural gas under the GST regime.

Q: Were there any relief measures announced for sectors such as hospitality, tourism, and aviation?

A: No, there were no relief measures announced for sectors such as hospitality, tourism, and aviation.

Q: Was there any decision made on the compensation to be paid to the states for the shortfall in GST revenue collection?

A: No, there was no decision made on the compensation to be paid to the states for the shortfall in GST revenue collection.

Q: What is the GoM that was approved by the GST Council?

A: The GST Council approved the formation of a GoM (Group of Ministers) to review the GST rate structure and suggest measures to streamline the GST system. The GoM will submit its report to the GST Council in the next meeting.