49th GST Council Meet: Entire compensation Cess Dues Will Be Cleared Today, Says Finance Minister Nirmala Sitharaman

The GST Council meeting was held today February 18, 2023. Union Finance Minister Nirmala Sitharaman chaired the 49th meeting of the GST Council and discussed the setting up of appellate tribunals and mechanisms to curb tax evasion in pan masala and gutkha business, among other matters.

Union Finance Minister said, “We expect to finalize the GoM report on GST tribunals with slight modifications so that it is ready by March 1, 2023, and we can include it in the finance bill”.

The GoM has suggested that the tribunals should consist of two judicial members, and one technical member each from the Centre and states, besides a retired Supreme Court judge as president.

“GST Council decided to tax services supplied by courts and tribunals under the reverse charge mechanism”, said Minister Nirmala Sitharaman.

“We have announced today that the entire due on the pending balance of the GST compensation will be cleared as of today…In other words, the entire pending balance of the GST compensation – a total of Rs.16,982 crores for June – will be cleared,” Nirmala Sitharaman said.

Further, Sitharaman said, “Reduction in GST on tags, tracking devices, or data loggers from 18% to Nil subject to some conditions. GST rates on Liquid Jaggery (RAB) from 18% to Nil or 5%. Nil if it is loose and 5% if it is prepackaged and labeled. GST on pencil sharpeners reduced to 12% from 18%”.

“GST Council recommends rationalization of penalties for late filing of annual GST Returns” FM Sitharaman added.

GST Council has decided GST exemptions for services by the National Testing Agency, by way of conduct of entrance examinations for admission to educational institutions.

The Union Finance Minister, Union Minister of State for Finance Pankaj Chaudhary, besides the finance ministers of states and Union Territories (with legislature) and senior officers from the Union government and states, attended the meeting.

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