Proposals of 49th Meeting of the GST Council

The Ministry of Finance vide press release dated 18.02.2023 has published the proposals of the 49th Meeting of the GST Council. With a view to plug the leakages and improve the revenue collection from the commodities like pan masala, gutkha, chewing tobacco, the Council approved the recommendations of the GoM including, inter alia, that:

1. The capacity based levy not to be prescribed;
2. Compliance and tracking measures to be taken to plug leakages/evasions;
3. Exports of such commodities to be allowed only against LUT with consequential refund of accumulated ITC;
4. Compensation cess levied on such commodities to be changed from ad valorem to specific tax based levy to boost the first stage collection of the revenue

The Council has also recommended that an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.