• In the last Council meeting on December 17, the Center and states had clarified on the applicability of GST cess on sports utility vehicles and decided to dilute certain provisions of the law.
New Delhi: Several decisions related to the Goods and Services Tax (GST), which were signed by the GST Council in its meeting earlier this month, will come into effect from January 1, according to a list of orders issued by the Central Board of Indirect Taxes. Chain and Customs (CBIC).
CBIC said that no GST is payable where residential accommodation is given on rent to a GST registered person, if it is rented out in his individual capacity for use as his own residence. This exemption is applicable when the accommodation is let out on his own account and not on account of his business. It brings clarity regarding GST liability of owners of businesses on rented properties.
CBIC also said that the tax rate changes approved by the Council will be effective from January 1. Accordingly, ethyl alcohol supplied to refineries for blending with motor spirit (petrol) will now attract only 5% GST as against 18%.
The council had decided to reduce the rate on husk of pulses including chilka and concentrate from 5% to nil. It had also decided to include supplies of Mentha arvensis under the reverse charge mechanism, as has been done for mentha oil, to improve tax compliance.
In the last Council meeting on December 17, the Center and states had clarified on the applicability of GST cess on sports utility vehicles and decided to dilute certain provisions of the law.
Accordingly, the minimum threshold of tax amount for initiation of prosecution under GST has been increased from ₹1 crore to ₹2 crore, except for the offense of issue of invoice without supply of goods or services.
The council had also decided to reduce the compounding amount to 25-100% from the current range of 50-150% of the tax amount.
