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Recommendations in 47th GST Council Meeting

The GST Council in its 47th Meeting has recommended changes in rates of certain goods and services. Clarifications on various aspects of GST have also been issued.

These changes/clarifications shall come into force only after relevant rules/notifications/circulars are issued.

Update 18.07.2022 : The relevant notifications have been issued and explained in our blog posts

  1. Recent GST Notification [1] 
  2. Revised GST Rates and Exemption on Services [2]

Proposed changes in GST Rates

The rate changes recommended by the 47th GST Council will be made effective from 18th July, 2022.

1Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof12%18%
2Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc.12%18%
3Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof5%12%
4Job work in relation to processing of hides, skins and leather5%12%
5Job work in relation to manufacture of leather goods and footwear5%12%
6Job work in relation to manufacture of clay bricks5%12%
7Transport of goods and passengers by ropeways.18%5% (with ITC of services)
8Renting of truck/goods carriage where cost of fuel is included18%12%
9Services supplied by foreman to chit fund12%18%
1Printing, writing or drawing ink12%18%
2Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc12%18%
3Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps12%18%
4Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc; Pawan Chakki that is Air Based Atta Chakki; Wet grinder;5%18%
5Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery12%18%
6LED Lamps, lights and fixture, their metal printed circuits board; 12%18%
7Drawing and marking out instruments12%18%
8Solar Water Heater and system;5%12%
9Prepared/finished leather/chamois leather / composition leathers;5%12%
10Ostomy Appliances12%5%
11Orthopedic appliance- Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens12%5%
12Tetra Pak (Aseptic Packaging Paper)12%18%
13Tar (whether from coal, coal gasification plants, producer Gas plants and Coke Oven Plants.5%/18%18%
14Cut and Polished diamonds0%2%
15Petroleum/ Coal bed methane5%12%
16Scientific and technical instruments supplied to public funded research institutes5%Applicable rate
18Cheques, lose or in book formNil18%
19Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printedNil12%
20Parts of goods of heading 8801Nil18%
21IGST on import of Diethylcarbamazine (DEC) tablets supplied free of cost for National Filariasis Elimination Programme5%Nil
22IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces.Applicable rateNil

Proposed changes in GST Exemption

GST was exempted on specified food items, grains etc when not branded, or right on the brand has been foregone.

It has been recommended to revise the scope of exemption to exclude from it prepackaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk.

Refund of accumulated ITC not to be allowed on flowing goods:

-Edible oils


Exemption for following services are being WITHDRAWN

Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued

The recommended changes in GST Law are

    1. Retrospective amendment in section 50(3) of CGST Act, with effect from 01.07.2017,to provide that interest will be payable on the wrongly availed ITC only when the same is utilized;
    2. Amendment in sub-section (10) of section 49 of CGST Act to provide for transfer of balance in electronic cash ledger of a registered person to electronic cash ledger of CGST and IGST of a distinct person.

The Council has decided to constitute a Group of Ministers to address various concerns raised by the States in relation to constitution of GST Appellate Tribunal and make recommendations for appropriate amendments in CGST Act.