49th GST Council Meeting: Know The Measures For Facilitation Of Trade

The 49th meeting of the GST Council was held on 18th February 2023 at Vigyan Bhawan, New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Nirmala Sitharaman.

The measures for the facilitation of trade were:

Extension of time limit for application for revocation of cancellation of registration and one-time amnesty for past cases

The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days. Where the registered person fails to apply for such revocation within 90 days, the time period may be extended by the Commissioner or an officer authorized by him on this behalf for a further period not exceeding 180 days.

The Council has also recommended that an amnesty may be provided in past cases, where registration has been canceled on account of non-filing of the returns, but the 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.

Amnesty scheme for conditional deemed withdrawal of assessment orders in past cases

The Council has also recommended providing an amnesty scheme for conditional deemed withdrawal of assessment orders in past cases where the concerned return could not be filed within 30 days of the assessment order but has been filed along with due interest and late fee upto a specified date, irrespective of whether an appeal has been filed or not against the assessment order, or whether the said appeal has been decided or not.

Rationalization of Late fee for Annual Return

Presently, a late fee of Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9.

The Council recommended rationalizing the late fee for delayed filing of annual returns in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year up to Rs 20 crore. The registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 percent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST). The registered persons having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 percent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).

Amnesty in respect of pending returns in FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10

To provide relief to a large number of taxpayers, the Council recommended amnesty schemes in respect of pending returns in FORM GSTR-4, FORM GSTR-9, and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.

Rationalization of provision of a place of supply of services of transportation of goods

Council recommended rationalizing the provision of a place of supply for services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 so as to provide that the place of supply of services of transportation of goods, in cases where the location of supplier of services or location of the recipient of services is outside India, shall be the location of the recipient of services.

Press Release 49th Meeting of the GST Council

Date: 18.02.2023

Click Here To Read The Press Release