The GST Council, at its 50th meeting, approved a slew of measures for the facilitation of trade and streamlining compliance with the Goods and Services Tax. Regularisations were also discussed, bringing certainty to many items for the benefit of industry and individuals.
Through regularisation, the taxability of certain items will be clarified, and payments already made will be considered, Finance Minister Nirmala Sitharaman said during a press conference after the meeting. But recovery of past tax dues will not be made from those who did not pay earlier, she said.
The move aims to remove any confusion around the duality of rates, classification queries, and any definition-based doubts.
Here is a list of regularisations approved:
The supply of raw cotton from farmers to cooperatives will now be taxable under the reverse charge mechanism, and past periods will be regularised on an 'as is basis.'
Trauma, spine, and arthroplasty implants for the period prior to July 18, 2022, on an 'as is basis,' in view of genuine interpretational issues.
Desiccated coconut for the period between June 1, 2017, and June 27, 2017, on an 'as is basis,' in view of genuine interpretational issues.
GST on plates and cups made of areca leaves prior to Oct. 1, 2019.
GST on biomass briquettes from July 1, 2017, to Oct. 12, 2017.
Apart from this, for the compensation cess levy on pan masala, tobacco products, etc. (where it is not legally required to declare the retail sale price), the previous ad valorem rate as of March 31 will be notified.
Notably, RBL Bank and ICBC Bank will join the list of specified banks for which IGST exemption is available on imports of gold, silver, or platinum and update the list of banks and entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023.
A release on the subject noted that 'consequential changes in notifications may be carried out in view of the new Foreign Trade Policy 2023', implying that changes will be notified as needed.
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