The GST Council, at its 48th meeting held under the chairmanship of Finance Minister Nirmala Sitharaman in New Delhi, recommended the decriminalisation of three types of offences.
The offences which would no longer be criminalised are: "obstruction or preventing any officer in discharge of his duties"; "deliberate tempering of material evidence"; and "failure to supply the information", stated a press release.
In another key decision, the Council has doubled the threshold for launching prosecution from Rs 1 crore to Rs 2 crore. It has further decided to reduce the compounding amount from the present range of 50 to 150 percent of tax amount to the range of 25 to 100 percent.
Highlights of 48th GST Council Meeting
The Council could decide on only eight out of the 15 agenda items due to paucity of time, Nirmala Sitharaman told reporters, adding that the items not considered included one pertaining to setting up of appellate tribunals for GST.
The issue of mechanism to curb tax evasion in pan masala and gutkha businesses also could not be taken up.
No new taxes have been brought, Sitharaman noted. However, the Council decided to waive off the five percent GST currently applied on the husk of pulses including chilka and concentrates including chuni/churi, khanda. The tax rate has been reduced to nil.
Also, the GST rate on "ethyl alcohol supplied to refineries for blending with motor spirit (petrol)" has been reduced from 18 percent to five percent.
The Council, Sitharaman said, has clarified on what constitutes an SUV and attract the tax applicable for such categories of automobiles.
The higher rate of compensation cess of 22 percent is "applicable to motor vehicle fulfilling all four conditions, namely, it is popularly known as SUV, has engine capacity exceeding 1500 cc, length exceeding 4000 mm and a ground clearance of 170 mm or above", the release stated.
Revenue Secretary Sanjay Malhotra said the Council has clarified that insurance companies' no claim bonus will not attract tax.
Malhotra also noted that GST on online gaming and casinos was not discussed during the meeting as the report of a Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, on the issue submitted its report only a couple of days back.
The report of the GoM was not even circulated to GST Council members, he added.
Notably, the GST Council is the highest decision making body of the one-nation, one-tax Goods and Services Tax (GST) regime. It is headed by the Union Finance Minister and all states and UT are represented in the body.
With PTI inputs
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