No tax increase on any item was decided at the GST Council meeting on Saturday and the Council recommended reducing GST on biofuel from 18 per cent to 5 per cent.
The GST Council has made the recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST. As per the Council recommendations, GST on husk of pulses reduced to nil from five per cent.
Besides, the Council also recommended reduction of GST on Ethyl alcohol or biofuel supplied to refineries for blending with motor spirit (petrol) to five per cent from current 18 per cent.
The GST Council approved the amendments in the GST Act and GST Rules for allowing unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs), subject to certain conditions.
Appreciating wholeheartedly the major decision of the GST Council to allow small unregistered vendors to sell their goods through e-commerce portals, the Confederation of All India Traders (CAIT) on Saturday thanked Finance Minister Nirmala Sitharaman for the long-term demand.
CAIT national president B.C. Bhartia and Secretary General Praveen Khandelwal said there are more than 8 crore small traders in the country but a large number of traders are conducting business activities without GST registration since their annual sale is below the GST threshold limit. Such traders will now be able to trade on e-commerce.
Earlier, GST Council in its 47th meeting had granted in-principle approval for allowing unregistered suppliers and composition taxpayers to make intra-state supply of goods through ECOs, subject to certain conditions. E-commerce business in India is now approximately 10 per cent of total retail.
Other highlights of GST Council Meeting
Officials said that GST on online gaming and casinos was not discussed as the report of GoM on the issue submitted its report only a couple of days back. The report of the GoM was not even circulated to GST Council members, said an official.
The GST council decided to clarify that goods falling in lower rate category of 5 per cent under schedule I of notification No. 1/2017-CTR imported for petroleum operations will attract lower rate of 5 per cent and the rate of 12 per cent shall be applicable only if the general rate is more than 12 per cent.
It also clarified that no GST is payable where the residential dwelling is rented to a registered person if it is rented in his/her personal capacity for use as his/her own residence and on his own account and not on account of his business.
The 48th GST council further clarified that incentives paid to banks by the Central government under the scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in the nature of subsidy and thus not taxable.
