The 48th GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode on December 17.
Key decisions
- The GST has been reduced on husk on pulses from 5 per cent to nil. Ethyl alcohol supplied to refineries for blending with motor spirit or petrol was also cut down to 5 per cent from 18 per cent.
Decriminalization under GST: The Council has recommended to –
- Raise the minimum threshold of tax amount for launching prosecution under GST from Rs. One Crore to Rs. Two Crores, except for the offence of issuance of invoices without supply of goods or services or both;
- Reduce the compounding amount from the present range of 50% to 150% of tax amount to the range of 25% to 100%;
- Decriminalize certain offences specified under clause (g), (j) and (k) of sub-section (1) of section 132 of CGST Act, 2017, viz.- obstruction or preventing any officer in discharge of his duties; deliberate tempering of material evidence; failure to supply the information.
About GST Council
- The GST Council was constituted by the Constitution (101st Amendment) Act, 2016 by inserting Article 279A (1) in the Constitution of India.
- As per Article 279A of the amended Constitution, the GST Council is a joint forum of the Centre and the States, and consist of: Union Finance Minister – Chairperson b) The Union Minister of State, in-charge of Revenue of finance – Member c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government – Members.
- As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST.
- As per the Supreme Court decision, recommendations of the GST Council are not binding on the Union and States, but only have a persuasive value.
- Recommendations of the GST Council, the product of a collaborative dialogue involving the Union and States.
- The SC further said that all the recommendations of the GST Council made by virtue of the powers under Article 279A (4) are not binding on the legislature’s power to enact primary legislations.
- Centre and States have equal powers to legislate on GST. The Council must work in a harmonious manner to achieve a workable solution.
