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TMI BlogMinutes of the 21st GST Council Meeting held on 09 September, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... mmended by the Law Committee for consideration of the GST Council i. Notification with respect to sub-section 6 of Section 54 of Central Goods and Services Tax Act, 2017 (Category of Registered Persons not eligible for refund) ii. Extension of date for opting for composition till 30 September, 2017 in respect of such migrated taxpayers, who have not exercised their option till 16 August, 2017 iii. Exemption from the requirement of registration to the persons making supplies of handicraft goods in different states iv. Exemption to a job-worker making inter-State supply of services to a registered person from the requirement of obtaining registration under clause (i) of Section 24 of the CGST Act, 2017 and consequential amendments v. Notifying the date from which Section 51 of the CGST Act, 2017 shall come into force as 18.09.2017 and notifying certain persons or category of persons as deductors under clause (d) of sub-section (1) of Section 51 of the said Act vi. Constitution of the Standing Committee, Screening Committees and National Anti-profiteering Authority (NAA) vii. Transitional provisions and filing of FORM GST-TRAN-1 viii. Changes in Central Goods and Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, 2017 5. The Hon'ble Chairperson invited comments of the Hon'ble Members on the draft Minutes of the 20th Meeting of the Council held on 5 August, 2017 (hereinafter referred to as the 'Minutes'). 5.1. The Hon'ble Minister from Punjab stated that in paragraph 15.3 of the Minutes regarding discussion on changes to Central Sales Tax (CST) Rules, there was a reference that States could work out a scheme where all States should have a low rate of Value Added Tax (VAT) (say 5%) on those petroleum products which were presently out of GST, when they were used as inputs for manufacture of any other product. He stated that a uniform decision was required to be taken at an early date as otherwise interest of some States would get adversely affected. Dr. Hasmukh Adhia, Secretary to the Council (hereinafter referred to as the 'Secretary') stated that the observations recorded in paragraph 15.3 of the Minutes were only suggestions from the Council and this issue would need to be discussed separately by the Hon'ble Finance Ministers of the States in the Empowered Committee of the State Finance Ministers or in some other forum. 5.2. Shri V.K. Garg, Advisor to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior to the implementation of GST, its applicability post-GST period would need to be examined. He stated that the judgment of the Hon'ble High Court of Karnataka, being a later one, needed to be considered. Shri Ritvik Pandey, Commissioner, Commercial Tax (CCT), Karnataka, stated that the judgment of the Hon'ble High Court of Karnataka was only an interim order to permit issue of Form 'C' for goods used for manufacture of products other than petroleum products but the order had a caveat that if the petition was dismissed, the tax would have to be paid at the normal rate. 5.3. Dr. P.D. Vaghela, CCT, Gujarat, stated that the report of CCTs on CST may be considered by the Council which has recommended that issuance of Form 'C' should be left to the wisdom of the States as no State would like to hurt the interest of its own tax-payers. In the absence of Entry Tax, the local tax-payers of the States would suffer as these goods would be brought from other States on Form 'C'. Also, the State revenue from petroleum goods and natural gas would be reduced considerably if this issue is not resolved, even when the definition of goods has been amended and restri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised the issue of cups and plates stitched or made of sal, siali leaves and sabai ropes and also for exempting handicrafts. He requested to replace his version recorded in paragraph 4 1.4 of the Minutes with the following version: 'The Hon'ble Minister from Odisha stated that tax on sal and siali leaves and cups and plates made thereof and sabai grass and sabai rope should be exempt as taxing these goods would affect the livelihood of the tribals of Mayurbhanj district and suggested that the Fitment Committee should examine these items. He further stated that the Finance Department of the State of Odisha had written a letter to the GST Council requesting to consider exemption of handicraft goods. He requested that the Fitment Committee should examine to exempt handicraft goods as poor artisans are engaged in making handicraft articles.' The Council agreed to add the version of the Hon'ble Minister from Odisha in paragraph 4 1.4 of the Minutes. 5.6. The Hon'ble Minister from Goa stated that his version was not recorded correctly in paragraph 41.3. of the Minutes. He did not state that a declared tariff was needed and that this position existed in the service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of~ (i) a civil structure or any other original works predominantly for use other than for commerce, industry, or any other business or profession; (ii) a structure meant predominantly for use as an educational, clinical, art or cultural establishment; (i ii) a residential complex predominantly meant for self-use or for use of employees; (iv) a road, bridge, tunnel, or terminal for road transportation for any purpose (e.g. services provided for construction of road to BSF for exclusive military use, construction of runway for Air Force, construction of jetty and allied infrastructure for Navy).He pointed out that the above composite supply of works contract shall attract a tax rate of 18% instead of 12% which was against the decision of the Council. He suggested that keeping in view the deliberations in the Council in its 20th Meeting held on 5 August 2017, the Minutes should be amended accordingly and works contract services provided to the Government, local bodies or Governmental authorities should be levied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding should be reduced from 18% to 12%. He stated that contracts relating to earth work, etc. should not be taxed. He also supported the proposal that the bodies that execute projects based on grant of budgetary provision from the Government should be covered within the definition of State. The Hon'ble Minister from Rajasthan stated that the rate of tax on labour intensive works like irrigation should be 5%. 5.13. The Hon'ble Minister from Telangana stated that the Hon'ble Chief Minister of his State had written to the Hon'ble Union Finance Minister that earlier there was Central Excise exemption for pipes above I 0 em diameter for drinking water, irrigation and sewerage. He pointed out that the cost of irrigation projects in his State was about ₹ 1,800 crore and there would be additional tax burden of about ₹ 200 crore if the rate of tax was not reduced. He stated that the tax rate on works relating to irrigation, sewerage, etc. should be kept at the pre GST level and the burden of embedded tax could be shared between the Centre and the States. The Hon'ble Minister from Kerala stated that in the last Council's meeting, it was decided that the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Act of Parliament or a State legislature; or established by Government with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under Article 243W of the Constitution. He stated that the same definition was provided under Notification No.12/2017-Central Tax (Rate) dated 30.06.2017 and the effect of this definition was that it excluded a Governmental authority from tax exemption which carried out functions of a Panchayat as provided under Article 243G of the Constitution. He suggested to modify the definition provided under Notification 12/2017-Central Tax (Rate) dated 30.06.2017 by explicitly incorporating reference in the definition of the Governmental authority to Article 243W as well as Article 243G of the Constitution. 5.16. The CCT, Gujarat stated that a second important issue to be addressed was that the transfer of budgetary grant by the Government to entities like Boards/Corporations/Societies/Institutes created by the State to implement various schemes of the Government and to carry out functions on its behalf should not be liable to tax. He explained that the transfer of budgetary grants to these entities could b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Minister from Karnataka concurred that the Governmental bodies should be only such bodies which were entrusted with sovereign functions like building roads, irrigation works, etc. 5.18. The Hon'ble Minister from Telangana stated that they had sent written comments that during the 20th Meeting of the Council, the Hon'ble Chairperson had mentioned that lowering of rate of tax further to 5% on certain types of Works Contracts and the issue of rate of tax in the case of on-going works would be examined and taken up in the next meeting of the Council but th is assurance of the Hon'ble Chairperson was not mentioned in the relevant paragraphs, namely, paragraphs 13.7 to 13.13, of the Minutes. The Hon'ble Chairperson observed that the implication regarding suggestion to reduce the rate of tax further to 5% needed to be studied by the officers. The Secretary stated that the Works where labour was pre-dominantly involved, the question was as to what was the material component in such Works Contracts. The Fitment Committee would need to examine it. He informed that as per the letter received from the Hon'ble Minister from Telangana, it was stated that the tax on material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... headline rate. For that, he asked the States to submit the component of labour and material (on actual basis) in a works contract which is labour intensive. He stated that this issue could be examined by the Fitment Committee. He added that the second issue to be considered by the Fitment Committee related to the definition of Governmental authority. He stated that both these issues could be examined by the Fitment Committee instead of taking an adhoc decision in this meeting of the Council. 5.22. The CCT, Gujarat, stated that if a Government corporation or authority or board was allotted grants by the State government (for example, grant allocated to construct a jail or police line, etc.), such transaction should not attract GST at the rate of 18%. He stated that he had already submitted two agenda points on this issue for consideration of the Fitment Committee. The Hon'ble Minister from Punjab observed that in Governmental contracts, work done was shoddy, and therefore, for future works, no rate reduction should be considered. The Hon'ble Minister from Kerala observed that while the Fitment Committee could look into the issue of material component in labour intensive wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Fitment Committee. He added that no distinction could be made between the existing contracts and the new ones and that the only point of examination by the Fitment Committee would be the relative component of materials vis-a-vis labour in the labour intensive contracts on actual basis which could be studied by the Fitment Committee and brought before the Council in the next meeting. He added that in today's meeting, the Council could take a decision that the rate of tax for Works Contract for construction of Government buildings shall be 12%. The Hon'ble Chief Minister of Puducherry stated that the rate of tax for drainage schemes for Government should also be at the rate of 12%. The Hon'ble Minister from Karnataka expressed that the issues framed by the Secretary reflected the sentiment of the Council and he expressed support for the same. 5.24. The Hon'ble Minister from West Bengal stated that the issue could be considered by the GIC after which the Council could consider the issue through video conference. The Hon'ble Chairperson stated that for arriving at some correct decision, detailed data would need to be worked out. The Secretary stated that for lab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter to the GST Council requesting to consider exemption of handicraft goods. He requested that the Fitment Committee should examine to exempt handicraft goods as poor artisans are engaged in making handicraft articles.' 6.4. To replace the version of the Hon'ble Minister from Karnataka recorded in paragraph 37.5 of the Minutes with the following: 'The Hon' ble Minister from Kamataka suggested that the Members of the Council should also get an opportunity to interact with the learned Attorney General of India on the subject of Extra Neutral Alcohol and to convey their views to him.' 7. The Council also decided the following while discussing the Minutes of the 20th Meeting of the Council: 7.1. The issue of Form C under the Central Sales Tax Act shall be examined further in light of the Court decisions. 7.2. The rate of tax on services provided to the Central Government, State Government, Union Territory, a local authority or a Governmental authority (a) by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of civil structure for use other than for commerce, industry or any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not possible to wait for the Council Meeting, GIC could decide and the decision could be notified. The Hon'ble Minister from Kerala stated that the Council could decide urgent matters through video conferencing. The Hon'ble Chairperson suggested that the GIC could decide on issues of routine nature, but if there was a substantial policy related issue, the Council could decide, either through video conferencing or by a physical meeting. 8.2. The Hon'ble Minister from Kerala stated that the CBEC had issued a circular clarifying that if there was an air-conditioned room in a restaurant, then the entire billing by the restaurant would have to be done at the rate of 18% whereas the rate for non-air-conditioned restaurant was 12% and also food from take away counters of such AC restaurant would attract tax at the rate of 18%. He observed that before issuing such clarification, it should also be considered by the States. The Secretary stated that such clarifications were normally examined by the Fitment Committee before issuance. 9. For agenda item 2, the Council took note of the decisions of the GIC. It also approved that the GIC could decide on procedural issues and for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N shall be made by the GST Council; and (ii) The Hon'ble Chairperson shall suitably nominate a Director on the Board of Directors of GSTN on the basis of nominations to be received from the State Governments. Agenda item 4: List of Acts from the Central and State Governments as per Section 5(4) of the GST (Compensation to States) Act, 2017 12. Introducing this agenda item, the Secretary informed that this issue was discussed in detail during the meeting of the officers of the Central Government and the State Governments held on 8 September, 2017 in Hyderabad. He informed that written comments on this agenda item were received from the States of Himachal Pradesh and Maharashtra. He further informed that during the Officers' meeting, the States of Uttar Pradesh, Odisha, Andhra Pradesh, Goa and Telangana had also raised the issue that some of the Acts listed were not repealed by their States in entirety but only certain Sections were omitted or that some Acts were missing or needed to be added in the proposed notification. He stated that during the Officers' meeting, he had advised the States to send in writing, all discrepancies relating to addition or deletion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund within seven days to those exporters who were registered under the GST or under the existing law within six months. He stated that several exp01ters were start-up companies and they should be allowed the facility of provisional refund. He pointed out that the Chief Economic Advisor, in his presentation (which is recorded under agenda item 9), had dwelt upon the means to encourage export but this proposal went against this spirit. The Commissioner (GST Policy Wing), CBEC, explained that this provision was meant to exclude fly by night operators from availing the benefit of this provision. The Hon'ble Minister from West Bengal observed that the worst scenario should not be taken as the basis for making law. Shri Arun Mishra, Additional Secretary, Commercial Taxes, Bihar, stated that as input tax credit was allowed for two months, there was a risk that some people could claim refund and then vanish. Shri R.K. Tiwari, Additional Chief Secretary (ACS), Uttar Pradesh, stated that his State agreed to the proposal to deny the provisional refund to newly registered persons but had reservations regarding denial of provisional refund only to tax payers who had not filed three cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtension of date for opting for Composition till 30 September, 2017 in respect of such migrated tax payers, who have not exercised their option till 16 August, 2017 17. The Commissioner (GST Policy Wing), CBEC explained during the presentation that the Composition scheme for migrated tax payers had closed on 16 August, 2017 and many people could not register or avail of th is scheme. In view of this, it was proposed to extend the date for opting for Composition scheme for migrated taxpayers till 30 September, 2017 and to implement it by introducing Rule 3(1) (A) in the CGST Rules and by also making a small consequential change in Rule 3(5) of the CGST Rules. He also explained that those who avail of the new deadline would be eligible for Composition benefits from 1 October, 2017. He explained that once the scheme was availed under the CGST Act, 2017, it would automatically be available under the other Acts, namely SGST Act and UTGST Act and vice versa. He further informed that during the Officers' meeting held on 8 September, 2017, it was proposed that the new deadline for availing Composition scheme should also be allowed to newly registered tax payers. 17.1. The Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they would need to generate e-way bill, irrespective of the value of consignment being transported. He informed that during the Officers' meeting held on 8 September, 2017, a few States had expressed concern that it would reduce the number of registered tax payers. 19.1. The Hon'ble Minister from Jammu & Kashmir stated that this was a very important issue for his State as about 11 lakh people (almost 10% of the population of the State of Jammu & Kashmir) sold their products in other States and they were adversely affected due to GST, including high rate of tax. He suggested that there should be no monthly cap of turnover and that there should be on ly an annual turnover cap. The Hon'ble Minister from Madhya Pradesh stated that art galleries were not allowing display of paintings of small artists until they took GST registration. The Hon'ble Minister from West Bengal supported the observation of the Hon'ble Minister from Madhya Pradesh and stated that tribal art, folk art, etc. were very important and artists should not be forced to get registered as they would then need to employ an accountant for compliance with GST law. The Hon'ble Chief Minister of Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f handicrafts could be taken from paragraph 5 of Agenda Item 8(i). 19.4. After discussion, the Council approved the suggestion to exempt from registration the suppliers of handicrafts with annual turnover of up to ₹ 10 lakh for the Special Category States (other than the State of Jammu & Kashmir) and up to ₹ 20 lakh for other States making inter-State supply under Section 24(i) as also making supply as a casual taxable person under Section 24(ii). The Council also agreed that there shall be no monthly limit of turnover for handicraft suppliers to avail the benefit of this provision. It was also agreed that the list of handicraft items listed in paragraph 5 of Agenda Item 8(i) shall be taken as a basis for drawing the list. 20. For agenda item 5(iii), the Council approved the following: (i) to exempt from registration the suppliers of handicrafts making inter-State supply under Section 24(i) as also making supply as a casual taxable person under Section 24(ii) if their annual turnover did not exceed ₹ 10 lakh in Special Category States (other than the State of Jammu & Kashmir) and ₹ 20 lakh for other States; (ii) there shall be no monthly limit of turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Sanjeev Kaushal , ACS, Haryana, stated that a similar demand could come in respect of goods as well. He stated that for movement of goods between Delhi and Gurugram (Gurgaon), splitting of transactions was easy and cautioned against allowing such an exemption. The Hon'ble Deputy Chief Minister of Gujarat stated that a distinction should be made between an industrial job work and other types of job worker. He cautioned that there was a lot of movement of goods between Vapi and Mumbai and such an exemption would lead to large amount of tax evasion. The Commissioner (GST Policy Wing), CBEC reiterated that even if there was splitting of turnover, tax would be paid on reverse charge basis and also reminded that the provisions of e-way bill Rules would apply for movement of such goods. The Secretary observed that as jewellery, goldsmiths' and silversmiths' wares and other articles under Chapter 71 were excluded from the scheme of e-way bill to ensure security for such consignments as contents of the package and the truck number could be available to third parties, the job workers for such goods should not be extended the benefit of exemption from registration for inter-St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pation by way of equity or control, to carry out any function; (b) society established by the Central or State Government or a local authority under the Societies Registration Act, 1960; (c) public sector undertakings. 23.1. He informed that during the Officers' meeting held on 8 September, 2017, there was a view that Section 52 of the CGST Act, 2017 relating to Tax Collection at Source (TCS) should also be notified but it was pointed out that if Section 52 was notified, then tax collection at source would have to be started, which might not be feasible immediately. He stated that taking this into account, it was suggested that registration for TCS could be started by issuing a circular to this effect rather than by notifying Section 52. The Council agreed to the suggestion to notify Section 51 to start registration for tax deductors at source but to notify the requirements of tax deduction at source at a later date. The Council also approved the notification of categories of persons under Section 51 (1)( d) of the CGST Act, 2017 as mentioned in paragraph 23 above who would also be liable to deduct tax at source. The Council further agreed to start registration for persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portant to demand that MRP on new stocks should be reduced as the Anti-profiteering bodies would take some time to get operational. The Secretary stated that this issue was raised during the last meeting of the Council and the Hon'ble Chairperson had made a public appeal to reduce the price of fresh stocks. He also explained that State-level complaints relating to State-level companies would be forwarded to the State-level Screening Committee and multi-State complaints would be forwarded to the Standing Committee, and thereafter, if needed, after investigation by the DG (Safeguards), CBEC, these would be placed before the NAA. The Hon'ble Minister from Kerala observed that there was no reduction in MRP of consumer goods and no serious warning had been given for reducing the MRP. The Secretary observed that the Anti-profiteering mechanism had been set up and State-level Screening Committees should start functioning soon. 25.3. The Hon'ble Minister from Goa observed that the ground realities were different than the initial euphoria created for GST. He added that the perception was that the traders had benefitted from GST and not the common people. He observed that this h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officers' meeting held on 8 September, 2017, it was also recommended that filing of GST TRAN-1 should be extended by one month i.e. till 31 October, 2017 and one revision in TRAN-1 could be done upto 31 October, 20 I7. The Additional Secretary (Commercial Tax), Bihar, cautioned against permitting revision of GST TRAN-1 as CGST credit of ₹ 62,000 crore had already been taken by the business community. The Secretary observed that as on ly one revision was being allowed in GST TRAN-1, there could also be a downward revision of the credit claimed under TRAN-1. The Hon'ble Minister from West Bengal supported the proposal under this agenda item. 27.1. The Council approved the proposed changes, namely inserting a new rule in the CGST and the SGST Rules to permit one revision of FORM GST TRAN-1 ; amendment in the heading of Table 5(a) to include CGST credit flowing from Section 140(9) of the CGST Act, 2017; to slightly modify the heading of Table 7(a) to allow flow of CGST credit through Transfer Credit Document (CDT); and to extend the date for filing GST TRAN-1 from 30 September, 2017 to 31 October, 2017 and one revision in TRAN- could be done upto 31 October, 2017. 28. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment exercise. He stated that in the above context, the following basic principles regarding GST rates on goods could be relevant for any future review of rates: - (1) To ensure a free flow of ITC, exemptions which break the ITC chain and result in cascading of input taxes should be kept to a bare minimum. (2) If any particular State desires to incentivize certain goods of local importance (for dealers with turnovers beyond the Threshold Exemption and Composition Scheme), it would be desirable that the same is done using a direct subsidy, rather than exemption from GST or reduction in GST rate. (3) As Nil GST on manufactured goods results in negative protection for the domestic goods, and thus goes against ' Make in India' policy, as a rule, no manufactured goods should be fully exempt from GST. (4) As concessional GST rate on any goods ( lower than the GST rate on inputs for such goods) results in additional cost to domestic suppliers, putting them at a disadvantage vis-a-vis imports, concessional GST rate on goods lower than the GST rate on inputs should be generally discouraged. (5) Considering that the present GST rate structure reflects more or less the pre- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stick, namely: - i. Goods of mass consumption I public interest; ii. Intermediate goods which are in the nature of B2B supplies; iii. Goods predominantly manufactured in the un-organised MSME sector; iv. Export related items. (c) Based on the above criteria, the Council may consider suitable guidelines for review of 28% rate, with an aim to rationalise rate, with priority to items of consumption by common man and keeping in view the revenue impact of such changes. 31.1. Starting discussion on this agenda item, Dr. Arvind Subramanian, Chief Economic Advisor (CEA), Ministry of Finance, stated that he always had reservation regarding the 28% rate slab and he expected that the rates would be reduced in the range of 12% to 18%. He observed that he was encouraged by this Paper and it was a good framework to think where the rates of tax could be headed for in the short and medium term. He suggested that the 28% rate slab should be slimmed down as much as possible. He also commended the criteria suggested in the Approach Paper for review of rates. In order to expand the tax base, he suggested that electricity, land and real estate should be brought under GST. He observed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the high rates were actually punitive for the tourists. He stated that his State was trying to provide better infrastructure to bring in high value tourist traffic 31.5. The Hon'ble Minister from Rajasthan stated that the share of tourists coming to India was not very significant and the high tax rates had further harmed the growth of tourism. He noted that tourism gave foreign exchange, employment, etc. and suggested that the rate of 18% should be applied to room tariff up to ₹ 10,000 per day. The Hon'ble Minister from Odisha supported the observations of the Hon'ble Minister from Goa and stated that the high rates of tax would discourage tourism industry. 31.6. The Hon'ble Minister from Telangana stated that granite, bidi and tendupatta were very important goods and requested to reduce the tax rates on them. 31.7. The Hon'ble Minister from Jammu & Kashmir stated that the Paper was a good start. He observed that any rate review should reduce the dispersal of the rate structure. He further stated that another criterion for rate revision should be whether such reduction would be beneficial for competitiveness of the product and in this regard, he cited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the sufferings of industry and rise in unemployment should also be kept in mind while discussing the rate structure. He pointed out that the small-scale industry was suffering due to high rates of tax, and therefore, the rate related discussion should not be postponed. The Secretary stated that the proposed rates for goods listed for this meeting could be considered but the subsequent suggestions for any change in the rates should be based on the agreed Approach Paper. The Hon'ble Minister from Chhattisgarh suggested to add one more principle in the approach paper, namely, to watch revenue and employment situation for next three months and see if revenue was low or employment was high or vice versa, and then the rate of tax on that product could be re-examined. The Hon'ble Minister from Karnataka suggested that the Council should not bind itself into a rigid decision-making body on this issue and that it should take decisions on the basis of the Approach Paper or in the light of such other conditions as might be prevailing. He observed that the Council could take a decision on this issue. The Council agreed to give more time to the Members to study the Approach Paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct did not yield much revenue and it was connected to employment in the Bastar region. The Hon'ble Ministers from Maharashtra and Telangana supported the proposal of the Hon'ble Minister from Chhattisgarh. The Hon'ble Chairperson stated that revenue was also an important consideration while considering the rate proposals. The Hon'ble Minister from Telangana responded that revenue yield from this good would not be much and it was consumed by the poorer sections of the society. The Secretary stated that exemption should be given to limited products and tamarind dried was a processed good and was used as a spice like jeera, etc. The Hon'ble Minister from Tamil Nadu stated that this was not a processed good and it was only dried under sunlight. Shri Anurag Goel, CCT, Assam stated that even if tax on this product was exempted, its price might not be reduced. After further discussion, the Council agreed not to exempt the tax on this product, but to reduce the same from 12% to 5% as recommended by the Fitment Committee. (ii) All goods i.e. cereals, put up in unit container and bearing a registered brand name (Sr. No.3): The Joint Secretary(TRU-l), CBEC, stated that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be very low. He added that as this product was supplied inter-State, it would also not enjoy the benefit of the threshold exemption of ₹ 20 lakh. He added that exempting this product from tax would help to generate employment. The Hon'ble Chairperson observed that the suppliers of roasted gram would be using some inputs which would be taxable such as mobile phone and they would be able to claim input tax credit on the same, if the product was taxed at the rate of 5%. After further discussion, the Council agreed not to exempt the tax on roasted gram, but to reduce the same from 12% to 5% as recommended by the Fitment Committee. (iv) Oil Cakes (Sr. No.7):The Joint Secretary (TRU-1), CBEC stated that the Fitment Committee proposed to tax oil cakes other than cotton seed oil cakes at 5% and to exempt cotton seed oil cake. He explained that this proposal was made keeping in view the fact that end use based exemption was difficult to administer as the supplier would not know the end use of the product. The Council approved the proposal. (v) Rubber bands (Sr. No. 11): The Fitment Committee recommended to reduce the tax on this product from 28% to 18%. The Hon'ble Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ols made of marble but to exempt idols made of clay. The Hon'ble Minister from Maharashtra stated that supply of idols should be exempted from tax as temple was not a place of business. The Hon' ble Chairperson pointed out that cement, electrical fittings etc. used in construction of temples was also chargeable to tax . The Hon' ble Minister from Odisha observed that if idols were taxed, the artisans would suffer. CCT, Assam suggested to exempt clay idols but to tax idols of other materials as their inputs would be taxed. The ACS, Uttar Pradesh stated that exempting idols from tax would not hurt the domestic industry as large quantities of idols were also being imported. The Hon' ble Minister from West Bengal stated that tax on idols was a ground level issue linked to political economy and sociology and he had been pleading for its exemption since last three meetings. The Secretary observed that the turnover of several idol makers was in crores of rupees. He observed that there could be a ground to exempt idols made of clay but idols made of other materials should be taxed. He added that this would also help to bring such idol makers under the Income Tax net. The Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TRU-1), CBEC, stated that tax rate of 3% was applicable only for goods falling under Chapter 71 of HSN Code namely natural or cultured pearls, precious or semi-precious stones, precious metals, etc. whereas worked corals was classifiable under Chapter heading 9601. The Hon'ble Minister from Rajasthan suggested that rate of tax on worked corals should be kept at par with gems. The Joint Secretary (TRU-1), CBEC, stated that handicrafts made of shells and coral s were excluded from thi s Chapter heading. The Hon' ble Chairperson observed that poor people did not buy corals and suggested to keep the rate of tax at 5%. The Council agreed to reduce the rate on worked corals, (other than articles of corals), from 28% to 5% as recommended by the Fitment Committee. (x) Walnuts (New proposal): The Hon' ble Minister from Jammu & Kashmir stated that only his State produced walnuts and a liberal import regime was destroying walnut production in his State. He stated that the maximum sale of walnuts took place before Diwali and it was very urgent that the rate of tax on walnuts (whether or not shelled) should be reduced from 12% to 5%. The Council agreed to the proposal. (xi) Parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Council agreed to this suggestion. (ii) The Council approved al l other recommendations of the Fitment Committee contained in Annexure-IIA of agenda item 7 of the 21st Council Meeting. Annexure-IIB 33.2. The Secretary stated that Annexure-IIB contained a list of goods on which the Fitment Committee did not agree to the recommendation to reduce the present rate of GST. The Council discussed some specific products and the record of discussion is as below. (i) Farshi Paththar (Flooring Stone) (Sr. No. 41): The Fitment Committee did not recommend reduction of tax on this product from 28% to 5% on the ground that the GST rate of 28% for goods falling in Chapter 68 was as per pre-GST tax incidence and that it would not be advisable to lower the tax rate for one set of items, as it would necessitate similar reduction in a large number of similarly placed items, which would entail substantial revenue Joss. The Hon'ble Minister from Chhattisgarh stated that due to high rate of tax on this product, almost all mines in his State were closed which employed about fifty thousand labour and it was a very grave issue in his State. He stated that this product was largely used as a bui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under GST. (iii) Carpets and floor coverings of coir (Sr. No. 50): The Fitment Committee did not recommend reduction of the existing rate of 12% on these products and felt that in order to achieve the larger goal of a single rate of GST, it might not be appropriate to tweak GST rates of goods which were already at 18% or below. The Hon' ble Minister from Kerala stated that while the intention was to tax floor coverings, carpets, mats and mattings and textiles of rubber at 5%, only HSN codes 5705.00 and 5311.00 were included. He suggested to include HSN codes 5702.20.10, 5702.20.20, 5702.20.90 and 5702.90.20 which appeared to be inadvertently left out. He also stated that while fixing a tax rate of coir ropes at 5%, HSN code 5607.90.10 was included but the coir products under 5609.00.10 was omitted, which should be rectified. He further added that many coir products had become expensive and there was a need to take decision item by item. The Hon'ble Minister from Karnataka stated that in the textile sector, there was a huge diversity, there being large firms and very small firms, and there was a need to take a considered decision in the Council after detailed discussion, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exure-IV 33.4. The Secretary explained that indigenous handmade musical instruments are exempt from GST. However, doubts were being raised whether or not a particular musical instrument was an indigenous musical instrument. He also explained that the list of musical instruments contained in Annexure IV of the Agenda Note 7 was provided by the CCT West Bengal, as mentioned in Sr. No.9 of Annexure-IIA. The Council agreed to tpe inclusion of this list as an exhaustive list of indigenous musical instruments, which if handmade, would be eligible for the existing exemption from tax. 34. In view of the above discussion, for agenda item 7 relating to recommendation of the Fitment Committee on goods and services (Outstanding Agenda Item from 20th GST Council Meeting), the Council took decisions as recorded below. 34.1. For Annexure-1, the Council approved the recommendations of the Fitment Committee with the following amendments/addition: (i) All goods i.e. cereals, put up in unit container and bearing a registered brand name (Sr. No. 3): In addition to the 3 conditions recommended by the Fitment Committee as amendment in the definition of the registered brand name, a fourth condition s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Hon' ble Supreme Court, in the case of Collector of Central Excise, New Delhi Vs. Louis Shoppe (12.03 .1995) laid down certain criteria to establish whether a particular article merited classification as ' handicraft', like predominantly made by hand, graced with visual appeal in the nature of ornamentation or inlay work or some similar work. He stated that using such criteria would lend an element of subjectivity and would also result in increased interface between administration and tax payers and in disputes. He informed that the website of the Development Commissioner (Handicrafts) under the Ministry of Textiles, Government of India (http://handicrafts.nic.in) listed out various categories of goods which are manufactured by craftsmen across the country apart from mechanised production. He stated that this list was examined and one possible way to resolve the issue of GST rate on handicrafts could be to consider a lower the rate of tax for goods which were largely made by hand. He stated that this approach would obviate the need to define 'handicraft' per se. He explained that keeping this approach in view, the rates of tax for certain items were s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts). It was also agreed to reduce the rate of tax for goods falling under Chapter 44 19 (carved wood products - table and kitchenware, etc.) from 18% to 12%. 35.4. The Hon'ble Minister from Kerala stated that the question as to what constituted a ' handicraft' remained unresolved. The Hon'ble Chairperson suggested that the tax rate on handicraft items on which the Fitment Committee had reached consensus, could be approved and for others, wherever the States made a suggestion in writing, it could be taken up for discussion by the Fitment Committee again. The Hon'ble Minister from Kerala stated that there was no agreement on products covered under Serial No. 15 ( coir products- mats, mattresses, etc. under Chapters 5705 and 9404 ). 35.5. The Secretary suggested that the rate of tax on glass statues under Chapter Headings 7018 and 9010 need not be reduced from 18% to 12% as glass statues could also be made of crystals. He further suggested that Paper Mache articles (Chapter Heading 4823) could be taxed at the rate of 5% as it was an important item for Jammu & Kashmir. The Council agreed to this suggestion. The Council also agreed that where no change in the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 702 20, 8702 30 or 8702 90 and motor vehicles falling under Chapter Heading 8703, and an Ordinance was accordingly promulgated on 2 September, 2017 to amend the Schedule to the Goods and Services (Compensation to States) Act, 2017. He explained that the variation in pre-GST tax incidence was primarily on account of variation in dealer's margin and freight for different makes of motor vehicles and higher the dealer's margin and freight, the lower was the tax incidence. He stated that if the rate of Compensation Cess was fixed by taking into account the highest pre-GST tax incidence, it might result in increase in tax on vehicles with higher dealer's margin/freight, and therefore, it might be advisable to consider lower limit of pre-GST tax incidence for arriving at the rate of Compensation Cess for a particular type of vehicle. He also suggested to have a separate rate of Compensation Cess for mid and large segment motor vehicle as these categories showed a significant variation in pre-GST tax incidence. 37.1. The Hon'ble Chairperson stated that a view needed to be taken whether Cess should also be increased on small cars. The Hon'ble Minister from Karnataka sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cess. The Hon'ble Chairperson agreed to the suggestion. The Secretary stated that no change in the rate of Cess was also suggested for motor vehicles for transport of not more than 13 persons including the driver, falling under sub-headings 8702 I 0, 8702 20, 8702 30 or 8702 90. The Council agreed to this suggestion. 38. For agenda item 8(ii), the Council approved the increase in the rate of Compensation Cess for the following categories of motor vehicles: (i) Sports Utility Vehicles (SUVs) (of length more than 4-metre, engine capacity more than 1500 cc and ground clearance 170 mm): To increase the rate of cess from the present 15% to 22%; (ii) Large cars (of engine capacity more than 1500 cc): To increase the rate of cess from the present 15% to 20%; (iii) Mid segment cars (of engine capacity less than 1500 cc): To increase the rate of cess from the present 15% to 17%; (iv) No change in the rate of cess for other categories of motor vehicles. Agenda item 8(iii): Exemption from GST on the services provided to both international and domestic customers by ANTRIX Corporation Limited from levy of GST 39. Shri Amitabh Kumar, Joint Secretary (TRU-ll), CBEC, introduced this a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the supply of nuclear fuel and heavy water by DAE to NPCIL 41. Introducing this item, the Joint Secretary (TRU-II), CBEC, stated that the Cabinet Secretariat had forwarded a letter of the Chairman, Atomic Energy Commission and Secretary, Department of Atomic Energy (DAE), requesting to exempt levy of GST on lease of nuclear fuel and heavy water by the DAE to NPCIL (Nuclear Power Corporation of India Limited). He stated that the DAE had justified the proposal for exemption on the ground that the DAE and the NPCIL were related persons as per the definition of "related persons" in Explanation to Section 15 of the CGST Act, 2017 as one of them, directly or indirectly, controlled the other. Therefore, supply of goods and services, even if made without consideration, when made in the course or furtherance of the business, shall attract GST. He further explained that the DAE, being a Government Department was not a tax payer under the GST Act, and the NPClL, being an assessee under the GST Act, would be required to pay GST on reverse charge basis and file returns under GSTR- 1, GSTR-2 and GSTR-3, and therefore, would capture sensitive details regarding strategic materials u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one for the month of July, 2017. The Hon'ble Chairperson requested the Secretary for a briefing on the GST revenues. 45.1. The Secretary stated that for the month of July, 2017, the last date for filing of return was 28 August, 2017. As per data received from GSTN on 29 August, 2017 for taxes collected upto 28 August, 2017, the amount of collection was ₹ 15,033 crore as CGST, ₹ 22,962 crore as SGST and ₹ 48,070 crore as IGST out of which IGST collection on account of import, as per data received from Customs upto 31 August, 20 I 7 was ₹ 21,377 crore. He added that for July 2017, the Compensation Cess collected was ₹ 7,216 crore. He explained that IGST was an interim tax which is used to discharge the tax liability of IGST, CGST and SGST and that the GSTN had given the cross-utilisation report of IGST used for payment of CGST and SGST and vice versa. He informed that the Settlement Order for IGST had been issued. Out of ₹ 48,070 crore collected as IGST, the Central Government had got ₹ 3,297crore as CGST and the States had got ₹ 7,504 crore as SGST. He stated that the total tax collected by the Central Government as CGST upto 28 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax fold during the month of July and August, 2017 and tax from them was also expected to come in the next month. 45.3. The Secretary stated that the amount of Central Excise credit claimed in TRAN-I for CGST was ₹ 61,856 crore and for SGST was ₹ 4,002 crore. He stated that all the transitional credit might not be used in the current month and it could be carried forward to the subsequent months. He added that the Central Government was checking the correctness of the high quantum of CGST credit taken in TRAN- I. The Hon'ble Chairperson stated that the revenue figure under IGST was creating an illusion of high tax collection. He observed that as per the State and Central Government's Budget Estimate, in order to break even, the revenue from July should have been about ₹ 91,000 crore. He observed that presently, only about 73% -74% of returns had been filed and additional tax was expected from the late return filers as also from the Composition Tax. He also pointed out that the amount lying in IGST account in the first month (July) might not be a perpetual problem as the credit would get used in the coming months. The Hon'ble Minister from Kerala state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering and they were required to borrow much more. He observed that the date for devolution of funds from the Centre to the States had been extended from 1st to 15th of the month and the balance amount of IGST was also being kept with the Centre. He suggested that in order to address the liquidity problem of the States, the amount lying in balance under the IGST head needed to be used in some way. The Hon'ble Minister from Telangana stated that his State suffered a shortfall of ₹ 853 crore for the month of July, 2017 and needed support to bridge this shortfall. The ACS (Finance), Uttar Pradesh, observed that large amount of money was locked under the IGST head and one reason for it could be that returns might not have been filed in the exporting and the destination States. He suggested to carry out a quick analysis of the tax payers who had sold the stocks but not filed their returns and the result of this analysis could be shared with the States for further follow up action to make such defaulters file their return. He also suggested to find out an ad hoc mechanism to distribute some part of IGST amongst the States to ease their Ways and Means situation. The Hon'ble M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that compensation was to be paid on bi-monthly basis, and therefore, the States' revenue would be a combination of the revenue of July and August, 2017. He added that as the revenue of July, 2017 was very buoyant, compensation requirement would be lesser. 45.7. The Hon'ble Deputy Chief Minister of Gujarat stated that in order to strengthen the faith of the business people in GST, it was necessary to have robust mechanism for refunds, like export refund, GST refund and the old VAT refund. The Hon'ble Minister from Telangana stated that revenue position of the States should not become so bad that giving salary to officials also became a challenge. The Hon'ble Minister from Rajasthan suggested that Compensation Cess should be distributed on a monthly basis. The Secretary stated that collection of taxes was not uniform every month as certain factors might affect revenue collection in a month. He stated that compensation would be calculated on the basis of revenue collection of the States for the months of July and August, 2017. The Hon'ble Minister from Kerala stated that the date of devolution should be changed from 15111 to I st of the month. The Hon'ble Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompensation date was given in the law itself. (ii) Presentation by the Chief Economic Advisor, Government of India on 'GST and Exports' 46. The Chief Economic Advisor (CEA) made a presentation on the topic 'GST and Exports'. He gave an overview to the Members on the economic background, embedded taxes on exports in the post-GST regime and the steps needed to make export competitive and to ensure robust growth in exports. (Copy of the presentation is attached as Annexure 4 to the Minutes.) 46.1. The CEA stated that while the GVA (Gross Value Addition) and GDP (Gross Domestic Product) showed upward movement in the financial year 2015-16, these showed a decline from FY 2016- 17 onwards. Non-oil export declined sharply in the first quarter of the fiscal year 2017- 18, imports were picking up and the GDP had also been decelerating for the last six quarters. He stated that the Central and the State Governments needed to do more to revive the slowing economy and slowing exports and the Council could also play a role in this. He stated that one of the urgent issues that came up for discussion at the highest level in New Delhi was how to promote exports. He observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tricity, energy, land and real estate into the GST, which would not only have other benefits (like transparency, credit flow, better compliance), but would also reduce embedded taxes on exports. He also presented statistics of the embedded taxes in exports on account of taxes outside GST and due to duty invers ion, which, depending upon the value addition, ranged from 3.2% to 5.9%. 46.4. Members of the Council agreed that a Committee of the officers should be constituted by the Hon'ble Chairperson which would examine the issues related to exports, specifically the taxes which were embedded in exports and draw up a mechanism for refund of such taxes.The formal decision on this agenda item is recorded in paragraph 15.2 supra. (iii) Presentation on information Technology (IT)-readiness of GSTN for roll-out of GST 47. The Hon'ble Minister from Karnataka requested to allocate time for discussion on issues related to GSTN. The Hon'ble Minister from West Bengal supported the suggestion and recalled that he had earlier suggested to bring out a white paper on IT preparedness. He expressed that collective thinking was needed to address IT related issues. The Hon'ble Chairp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of GSTR-1 , the CEO stated that 19,83,342 returns had been filed and further presented frequency of GSTR-1 filed on daily basis. He elaborated that the peak time for filing GSTR-3B during a day was 11.00 am to 12.00 pm and 6.00 pm to 8.00 pm. He also stated that on the first day of GSTR-1 filing, 50,000 returns had been filed. He informed that on 5 and 8 September, 2017, there was a problem in accessing GST Portal because one Bank had filed large number of invoices in format different from that prescribed by GSTN and many had wrong GSTIN, which led to the glitch. The CEO also gave details of date-wise payment of tax in the month of August, 2017. 47.3. The CEO gave a brief overview of some of the challenges faced by them in respect of each of the modules like registration, payments, returns and transitional forms and action taken by them to resolve them. He informed that the IT Committee of officers was meeting every week for 2-3 hours to discuss the challenges faced and to take remedial action. He informed that some of the problems faced by the tax payers had already been fixed and these included: (i) Tax payer's registration application stuck in various statuses like " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ISD Return - GSTR-6 and GSTR-6A- 11 September 2017; Application of Amendment of Core fields- 13 September 2017; (iii) Processing of GSTP Application- 13 September 2017; (iv) Suo-moto Registration with Payment functionality- 13 September 2017; (v) Filing of Monthly Return GSTR-3- 15 September 2017; (vi) Filing of GSTR-1A-15 September 2017; (vii) Processing of TDS/TCS-22 September 2017; (viii) Registration and Processing of NRFT (non-resident foreign taxpayer)-22 September 2017; (ix) Opt out from Composition scheme-22 September 2017; (x) Balance Registration features (Cancellation, revocation & processing of both)- 6 October 2017; (xi) Creation and display of reports (Settlement, Mismatch)- 6 October 2017; (xii) Return filing for Composition dealers (GSTR-4)- 6 October 2017; (xiii) Viewing of composition supplies (GSTR-4A)- 6 October 2017; (xiv) Annual return filing (GSTR-9)- 01 December 2017; (xv) Annual return filing for Composition (GSTR-9A)- 01 December 2017; (xvi) Submission of final return (GSTR-10)- 01 December 2017; (xvii) Filing of Statement of lTC, cash and tax liabiIity due to transfer of business GSTR-14-01 December 2017. 47.6. The CEO presented the future plan of releas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... faced some technical challenges in exchange of data on registration/return where all of them were not transferred. The Hon'ble Minister from Karnataka observed that the technical problems should be corrected at the earliest. The Hon'ble Minister from Kerala supported the proposal to create GoM. The Hon'ble Deputy Chief Minister of Bihar congratulated GSTN for carrying out one of the world's biggest task and suggested that instead of GoM, there could be a group of officers to interface with GSTN. He informed that taxpayers had repor1ed slow rate of validation and generation of reports on GST Portal. The taxpayers also had to open multiple windows and needed to refresh the page very frequently. He also observed that all invoices were not getting imported into the offline utility tool and the missing invoices were to be tracked and entered manually. He further informed that if the number of invoices crossed 500 for a taxpayer, then modification of any incorrect entry could not be done online and the taxpayer needed to download the whole data, find out the missing invoice, correct it offline and then upload again. He added that Rule 87(4) of the GST Rules, 2017 provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 47.12. The Secretary observed that the sense of the House was anxiety on IT related issues. The taxpayers were also finding the IT situation to be difficult and it was taking almost two hours to file a return. He stated that firstly one should admit that there was a problem and then give a deadline to fix the problem to make the IT system work seamlessly. He stated that there was a need to complete the first cycle of GSTR-1 , GSTR-2 and GSTR-3 but keeping in view the experience gained in Jul y, 2017, a longer time frame could be given for the same. He informed that the issue regarding extension of dates for different Returns was discussed during the officers' meeting held on 8 September 2017, and the following had been agreed upon: (i) To permit filing GSTR-3B for supplies for the months of August, 2017 to December, 2017; (ii) To extend the date for filing GSTR-1 for the month of July, 2017,which was expiring on 10 September, 2017 (as only 20 lakh returns had been filed so far) to 10 October, 2017 but the last date for filing GSTR-1 for taxpayers with turnover of more than ₹ 100 crore shall be 3 October, 2017 (to give smaller taxpayers more time to fi le GSTR-1 without c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only B2C (Business to Consumer) supplies and that the Law Committee could examine it. 47.15. The Hon'ble Chairperson stated that the Council could agree to the suggestion for the new timelines for filing the returns suggested by the Secretary (in paragraph 47.12). He also suggested to constitute a small Group of Ministers consisting of 4-5 Ministers to monitor and resolve the IT challenges faced in implementation of GST. He also expressed that everyone had equal interest in revenue, and therefore, there should be an arrangement for unhindered flow of information. 48. In view of the above discussion, the Council approved the following:- 48.1. To permit filing GSTR-3B for supplies for the months of August, 2017 to December, 2017; 48.2. To extend the date for filing GSTR-1 for the month of July, 2017 from 10 September, 2017 to 10 October, 2017 but the last date for filing GSTR-1 for taxpayers with turnover of more than ₹ 100 crore shall be 3 October, 2017; 48.3. To extend time for filing GSTR-2 for the month of July, 2017 to 31 October, 2017; 48.4. To extend the date for filing GSTR-3 for the month of July, 2017 to 10 November, 2017; 48.5. No extension of last date f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on' ble Chief Minister of Nagaland circulated a written speech. He highlighted some issues and challenges faced by the State of Nagai and in the process of implementation of GST relating to migration, new registrations, filing of returns, interest and related penalties and varying rates of tax on lotteries. He also suggested to share comparative tax incidence on goods and services pre-GST, vis-a-vis GST rates. He also suggested greater sensitisation and publicity to explain the reasons and advantages as to why exempted goods and services under the earlier VAT regime had been brought under GST. He further suggested some measures to protect small traders like the GSTN portal allowing them to shift from a normal dealer to the composition scheme. 49.4. The Government of Telangana circulated a booklet on GST implications on Government Works contract in which it highlighted the options available for taxation of Government works contract and gave data regarding additional burden of tax for the Government if the rate of tax was kept at 12% and work sheet regarding total value of work of some projects of the State Agenda Item 10: Date of the next meeting of the GST Council.3 50. Afte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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