Key Highlights of the Recommendations made in 47th GST Council Meeting.

The 47th GST Council was held on 29th June 2022, under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure:

GST on supply of printing, writing or drawing ink, knives, power- driven pumps, LED Lamps, lights and fixture is recommended to be increased from 12% to 18%. The GST rate on solar water heater and finished leather is recommended to be increased from 5% to 12%.

The GST Council also made certain clarifications on the GST rates. It is clarified that electric vehicles whether or not fitted with a battery pack would be eligible for the concessional GST rate of 5% and the GST rate on all forms of mango under CTH 0804, including mango pulp (other than mangoes sliced, dried) attract GST at the 12%. Entry is also being amended to make this amply clear. Raw or fresh mangoes continue to be exempt.

Due to ambiguity in GST rates on supply of ice-cream by ice-cream parlours, GST charged @ 5% without ITC on the same during the period 1.07.2017 to 5.10.2021 shall be regularized to avoid unnecessary litigation.

Further it has clarified that the application fee charged for entrance or for issuance of eligibility certificate for admission or issuance of migration certificate by universities is exempt from GST and the Services in form of Assisted Reproductive Technology (ART)/ In vitro fertilization (IVF) are covered under the definition of health care services for the purpose of exemption under GST.

Amendment in CGST Rules for handling of pending IGST refund claims: In some cases where the exporter is identified as risky exporterrequiring verification by GST officers, or where there is a violation of provisions of Customs Act, the refund claims in respect of export of goods are suspended/withheld.

Amendment in rule 96 of the CGST Rules has been recommended to provide for transmission of such IGST refund claims on the portal in a system-generated FORM GST RFD-01 to the jurisdictional GST authorities for processing. This would result in expeditious disposal of such IGST refund claims, after due verification by GST officers, thus benefitting such exporters.

The rate changes recommended by the 47th GST Council will be made effective from 18th July, 2022.