32nd GST Council Meet – News Updates & Highlights

32nd GST Council Meeting – Key Takeaways

Watch an In-Depth Analysis of 32nd GST Council Meet by ClearTax GST Expert – CA Surabhi Punshi

Latest Updates

1st September 2021
45th GST Council meeting will be held on 17th September 2021. Tax concessions on COVID-19 essentials may be extended, Matter on GST compensation to states may be taken up, correction of inverted tax structure, etc are on the agenda.

28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.

21st May 2021
43rd GST Council meeting will take place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and will be chaired by Union FM Nirmala Sitharaman.

18th February 2021
Various media sources have stated that the next 43rd/44th GST Council Meeting is set to be held in mid-March 2021.

12th October 2020
The extended 42nd GST council meeting (also referred as 43rd GST Council meet by certain media sources) was held on 12th October 2020 with the following highlights:
1. The meeting ended with no unanimity on the borrowing issue.
2. The levy of compensation cess will continue beyond the 5-year period.
3. The centre will not be able to borrow funds to meet the compensation cess shortfall.
4. It was also clarified in the press briefing that the cess collected July 2022 onwards will not be disbursed to the states.

5th October 2020
At the 1st of the 42nd GST Council meeting, the GST council discussed the pressing compensation cess issue and other matters with regard to ease of return filing and GST rate reduction.

27th August 2020
41st GST Council meeting was held on 27th August 2020 via VC with the key item on agenda being the ways to compensate for the GST revenue shortfall to the states.

12th June 2020
40th GST Council meeting concluded with major announcements made for MSMEs.

1st September 2021

45th GST Council meeting will be held on 17th September 2021. Tax concessions on COVID-19 essentials may be extended, Matter on GST compensation to states may be taken up, correction of inverted tax structure, etc are on the agenda.

28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.

21st May 2021
43rd GST Council meeting will take place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and will be chaired by Union FM Nirmala Sitharaman.

18th February 2021
Various media sources have stated that the next 43rd/44th GST Council Meeting is set to be held in mid-March 2021.

• GST Registration

  Basic exemption limit for suppliers of goods will be increased from Rs 20 lakhs to Rs 40 lakhs. However, this limit remains Rs 20 lakhs for suppliers of services. For the special category States, the limit for registration is currently at Rs 10 lakhs. This limit in case of supply of goods is increased up to Rs 20 lakhs and such States have been given an option to either choose Rs 40 lakhs or Rs 20 lakhs threshold limit in a week’s time.

• New Composition scheme for Services providers

  Those suppliers rendering either independent services or providing a mixed supply of goods & services with a turnover of up to Rs 50 lakhs p.a in the preceding financial year, can join this scheme. The Tax rate is fixed at 6% (3% CGST +3% SGST).

• Changes to existing Composition scheme

  • Increase in the limit to opt into the scheme will be increased up to Rs 1.5 crore effective from 1st April 2019.
  • Tax to be paid Quarterly and GST Returns to be filed annually.

[Note: The effective changes to GST Composition scheme for both suppliers of goods and services will apply from 1st April 2019]

• Consensus received for charging calamity cess in Kerala

  Kerala has been given an approval to charge Disaster/calamity cess of up to 1% on all the intra-state supplies of goods and services within Kerala, for up to two years

• GST Rate cuts

  • No changes in GST Rates until Revenue spikes, recommended by the GST council
  • No GST rate cut on sale of under construction flats. Instead, a 7 member group of ministers is formed to study the implications of reducing the rates from 12% to 5% on supply of such under construction properties.
  • Further, No GST rate cuts on the Private lottery distributions. A Group of ministers will be formed with representatives from developing and selling states

• Extension of GST practitioner exam

  The last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years.

• Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.

GST council recently met on 22nd December 2018. Catch all the highlights of the 31st GST council meeting.

Expectations from the 32nd GST Council Meeting

• To decide whether or not to include the supply of residential properties and supply of services by small service providers, under Composition scheme. A group of ministers(GoM) is looking into the same. As far as the taxability of the residential properties is concerned, there are two proposals tabled before the council. One, where a tax rate of 5% will be levied on the supply of residential properties (under construction) without Input tax credit (by the option of composition scheme). The other,  where the tax rate levied will be 8% to keep it at par with the tax rate on affordable housing.
• To deliberate whether or not the tax rates on Lotteries must be 12% or 28% GST Slab for private schemes respectively.
• To take a call on the threshold limit of exemption for MSMEs.
• A committee by Shri Sushil Kumar Modi was set up in the 30th GST Council Meeting. The committee studied the implication of setting up a fund in case of exigencies such as natural disasters, the recent one being the floods in Kerala. They have proposed to introduce ‘Revenue Mobility scheme’ to address the issues. The 32nd GST Council Meeting will be an important one, as it will take a final call on funding natural calamities that have been a serious point of consideration by many Council members for quite some time.

32nd GST Council Meeting Government Press Release

Government press release for 32nd GST Council Meeting is attached below:

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