The Goods and Service Tax (GST) Council met in the nation’s capital of Delhi on Saturday, December 17. It was under the leadership of Finance Minister Nirmala Sitharaman. Conrad Sangma, chief minister of Meghalaya, chairs the Group of Ministers, was looking into the matter from last year. On Thursday, the GoM sent its report to Nirmala Sitharaman, the minister of finance.
Below are the Major Decisions from the Council:
According to Revenue Secretary Sanjay Malhotra, the GST Council agreed on Saturday to decriminalize several offences. Also, quadruple the threshold for filing a lawsuit to Rs. 2 crore.
Sitharaman also said on the discussions at the 48th meeting of the GST Council that no new taxes had been introduced.
She further, claimed that the Council had made it clear what constituted an SUV and attracted the tax that was applicable to vehicles in such categories.
Except for the offence of issuing invoices without providing goods or services or both. The Council has also recommended raising the minimum tax amount for starting a prosecution under GST from Rs. One Crore to Rs. Two Crores; lowering the compounding amount from the current range of 50% to 150%. Of the tax amount to the range of 25% to 100%. Decriminalizing some offences listed under clauses (g), (j), and (k) of sub-section (1) of section 132 of the CGST Act.
The higher rate of compensating cess, which is 22%, is applied to motor vehicles that meet all four requirements: they are commonly referred to as SUVs, have engines that are over 1500 cc, are longer than 4000 mm, and have a ground clearance of 170 mm or more.
Goods falling under Schedule I of Notification No. 1/2017-CTR’s reduced rate category of 5% that are imported for use in petroleum activities will be subject to the lower rate of 5%, and the rate of 12% will only apply if the general rate is higher than 12%.
The Central Government has further provided incentives to banks as part of a Programme to promote RuPay Debit Cards and low value Transactions made through BHIM-UPI are in the nature of subsidies and are not taxable.
To make it clear that insurance companies providing No Claim Bonus to the people is an acceptable deduction for the valuation of insurance services, the council will also issue a circular.
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