Update: Summary of decisions taken in 50th GST Council meeting

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Update: Summary of decisions taken in 50th GST Council meeting

Tejasvi

@tejasvi

July 26, 2023

Public Policy

The 50th meeting of the GST Council was held in Delhi on July 11, 2023. Some of the important updates pursuant to the meeting are as follows:

Key decisions:

Clarification that holding shares in a subsidiary cannot be taxed under the GST

Nasscom had been advocating on this issue for more than 1 year with the GST officials. Given the magnitude of the issue, especially for Global Capability Centres in our industry, we met the key Central & State Government officers, highlighting the fact that if such an interpretation is adopted, then all subsidiaries in India will end up paying GST in all cases where there is an equity holding by overseas parent/ affiliate. This interpretation could have severe impact on overseas investments into India. Our submission on this issue can be accessed from here.

Based on our representations, Circular 196/04/2023-GST has been issued to clarify that the activity of holding of shares of subsidiary company by the holding company per se cannot be treated as a supply of services and hence, cannot be taxed under GST. This issue was quite prevalent in the state of Karnataka. This will provide relief to many companies in our industry, including the GCC companies.

Clarification on the mechanism for apportionment of tax credit of common costs by head office for its branches

Nasscom had been advocating on this issue for more than 1 year with the GST officials. Given the magnitude of the issue for our industry, we made several representations and had multiple meetings with the Central & State Government officers. Our submission on this issue can be accessed from here.

Based on our representations, Circular 199/11/2023-GST has been issued to clarify that Input Service Distribution (ISD) mechanism is not mandatory for distribution of tax credits of common input services procured from third parties as well as making ISD mandatory prospectively. This has been a long-standing demand of our Industry. This development is expected to provide clarity to the industry on the method to be used for distribution of cost of common functions. Further, the tax demands raised by GST authorities in the past are likely to get settled.

Steps to operationalise Goods and Services Tax Appellate Tribunal (GSTAT). This is a positive development that we have been pursuing. After 6 years of GST implementation, GST appellate tribunal is all set to be formed. With the rules coming in place effective August 01, 2023, will help in bringing the GST Appellate Tribunal in operation at the earliest. Even during the press release, the Revenue Secretary updated the media that Tribunal should be running in another 6 months’ time period.

Other updates:

Circular 194/06/2023-GST provides clarification regarding applicability of Tax Collection at Source (TCS) provisions in case of multiple E-Commerce Operators (ECOs) in one transaction. The liability for TCS would be on the ECO settling the payment (seller side app). In case the seller side app is also the seller, then it will be the buyer side app.
Circular 193/05/2023-GST provide clarification regarding various aspects to deal with difference in ITC availed in Form GSTR-3B vis-à-vis GSTR-2A for the period April 1, 2019 to December 31, 2021. The Circular provides that Circular 183 (which provides for self-certification/ CA certification from supplier to enable the recipient to avail credit) can be applied but the ITC will still be subject to the ITC limit set under Rule 36(4), ie, 20%, 10% and 5%.
Circular 197/09/2023-GST clarifies on various refund related issues such as sanctioning of refund basis GSTR-2B, modification in requirement of undertaking in RFD-01, manner of calculation of adjusted total turnover for export of goods and other issues.
Circular 192/04/2023-GST has been issued to clarify that where wrong availed IGST credit is subsequently reversed, there will not be any interest liability if the balance of ITC under the heads of IGST, CGST and SGST taken together has never fallen below the amount of wrongly availed IGST credit, during the time period starting from such availment and up to subsequent reversal. This will apply even if available balance of IGST credit in electronic credit ledger individually falls below the amount of such wrongly availed IGST credit. Further, credit of compensation cess in electronic credit ledger cannot be considered for the balance to calculate interest under sub-rule (3) of rule 88B of CGST Rules in respect of wrongly availed and utilized IGST, CGST or SGST credit.

We hope you will find the update useful.

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Tejasvi

Nasscom Public Policy Highlights | ...

Sudipto