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49th GST Council Meeting Highlights: GST Rate Reduction and More

Finance Minister Nirmala Sitharaman chaired the 49th GST Council meeting today in Delhi with Minister of State for Finance Pankaj Chaudhary, her state counterparts and other senior officers. In the meeting Government of India has decided to clear the entire pending balance GST compensation of Rs. 16,982 crore for June’ 2022 

A Gist of the recommendation made in the 49th GST Council meeting held today Ferbruary 18, 2023 at New Delhi are given below:


  • GST rate to be reduced on following items:
    a. Rab (liquid jaggery) – from 18% to 5% (if sold pre-packaged/ labelled) or 0% (if sold loose)
    b. Pencil Sharpener – from 18% to 12%
  • Provision of services w.r.t. conduct of examination to any authority, board or body set up by Govt. (Central/ State) to be exempt;
  • To bring in reverse charge mechanism on services supplied by Courts and Tribunals such as renting of premises;
  • Measures would be taken to improve GST collection on Pan Masala, Gutkha and Chewing Tobacco including exports to be allowed only against Letter of Undertaking (LUT) and levy of Compensation Cess on first stage of collection of tax;
  • Place of supply for services related to transportation of goods (where service provider or recipient is outside India) shall be location of recipient of service instead of place of destination of such goods.
  • Late fee for GSTR-9 from FY 2022-23 onwards has been recommended to be as under (whichever is higher):
    a. Turnover up to 5 crore – INR 50/- per day or 0.04% of Turnover
    b. 5 crores to 20 crores – INR 100/- per day or 0.04% of Turnover
    c. More than 20 crores – INR 200/- per day or 0.25% of Turnover
  • One-time reduction/ waiver in late fee shall be provided for pending GSTR-4, GSTR-9 and GSTR-10 returnsTime limit to file application for revocation of cancelled registration shall be increased from 30 days to 90 days which can be further extended up to 180 days;
  • One-time relaxation shall be provided to file application for revocation for past cases where registration has been cancelled on account of non-filing of returns;
  • Time limit for deemed withdrawal of best judgment assessment order passed for non-filing of return shall be increased from 30 days to 60 days under Section 62 of GST Ac

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