GST Meet Highlights: GoM Suggestions on GST Exemptions, Correction of Inverted Duty Accepted, Says FM

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structure, finance minister,” said while announcing the outcome of the 47th GST meeting.

GST Council brought pre-packaged and labelled food items such as wheat flour, puffed rice, curd/lassi/buttermilk and paneer under the GST regime, according to sources. The council approved a proposal to levy a 12 per cent tax on hotel rooms charging below Rs 1,000 per day. The GST Council also decided to impose a five per cent GST without input tax credit on hospital rooms with rent above Rs 5,000, excluding intensive care units (ICUs).

“Significant progress has been made in this very significant meeting of the GST Council. The correction of inverted duty structure on several items and removal of exemptions based on the recommendations of the GoM on rate rationalization is good to note,” said Mahesh Jaising, Partner and leader, Indirect Tax, Deloitte India

“We will now have to wait for the final report on the actual rate rejig to be submitted for discussion before the council,” he added.

The council on Wednesday deferred a decision to implement 28 per cent GST on online gaming, casino and race courses, Sitharaman mentioned. The council asked the Group of Ministers to re-examine the issues in its terms of reference based on further inputs from states and submit its report within July 15. The GST Council will meet again at the starting of the next month to discuss this issue, finance minister said.

Providing a big relief to MSME’s, the Council has also extended the Rs 40-lakh threshold exemption for intra-state sales and the Rs 1.5-crore threshold under composition scheme to online sellers.

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