Regarding the decision taken on the GST rate on goods, Finance Minister Nirmala Sitharaman said, the council has decided to reduce the rate of rice grains (FRK) to 5 percent.
Union Finance Minister Nirmala Sitharaman (File Photo: PTI)
In a major move to curb leakages, the GST Council on Saturday approved a proposal to implement a ‘track and trace mechanism’ for certain pilferage-prone items, under which such goods or packages would have a A unique mark will be affixed so that they can be traced throughout the supply. chain
It is to insert an enabling provision through Section 148A in the CGST Act, 2017 to empower the government to implement a track and trace mechanism for certain theft-prone items.
“This system will be based on a unique identification mark affixed to the said goods or their packages. It will provide a legal framework for developing such a system and tracking specific goods throughout the supply chain. will help in the implementation of the procedure,” the finance ministry said while listing the decisions taken in the 55th council meeting here.
“To clarify that in respect of supply of ‘online services’ to unregistered recipients like online money gaming, OIDAR services etc., the supplier must mention the state name of the unregistered recipient on the tax invoice. and such name of the recipient State shall be deemed to be the address on record of the recipient for the purpose of section 12(2)(b) of the CGST Rules, 2017. has been read with
Regarding the decision taken on the GST rate on goods, Finance Minister Nirmala Sitharaman said, the Council has decided to reduce the rate on Fortified Rice Kernel (FRK) from 18% to 5%. What is and also exempted from GST on gene therapy.
In addition, he said, to reduce the rate of compensatory cess on supplies to commercial exporters to 0.1 per cent on par with the GST rate on such supplies and to inspect all equipment and consumables by an international inspection team. It has been decided to exempt from IGST importation of Atomic Energy Agency (IAEA) subject to specific conditions.
With regard to services, he said, the Council has levied GST on contributions made by general insurance companies from third-party motor vehicle premiums collected in the Motor Vehicle Accident Fund constituted under section 164B of the Motor Vehicles Act, 1988. Decided to give exemption from .
This fund is constituted to provide compensation/cashless treatment to the victims of road accidents including hit and run cases.
Besides, he said, the GST Council has recommended no GST on voucher transactions as they are neither supply of goods nor supply of services.
Provisions related to vouchers are also being simplified, he said, adding that the council has recommended amending the definition of ‘prepackaged and labelled’ to cover all items that are sold at retail. taken and not exceeding 25 kg or 25 litres. which are ‘pre-packaged’ as defined under the Legal Metrology Act, or require a label affixed thereto. Bear declarations under the provisions of the Act and Rules.
It was also clarified that no GST is payable on ‘penal charges’ charged and collected by banks and NBFCs from borrowers for non-compliance with loan conditions.
The Council also approved issuing clarifications through circulars to remove ambiguities and legal disputes on certain issues.
The panel recommended reduction of payment of advance deposit for filing an appeal before the appellate authority against a passed order, which includes only the penalty amount.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed. PTI)