The key highlights of the 48th GST Council Meeting held on 17th December 2022.

1. Regarding a GST rate increase, no decision has been made.
2. Since the second report on casinos and online gaming was not distributed, it was not on the agenda for the 48th meeting.
3. Cess on SUV at 22% clarified- Applicable if meets 4 criteria-
   • Popularly known as SUV,
   • The engine capacity of more than 1500 cc,
   • Length of more than 4000 mm and
   • Ground clearance equal to or more than 170 mm.
4. The Council has decided to decriminalize the following three offences under the GST law –
   • The tax threshold for launching prosecution under GST or taking criminal action is increased from Rs.1 crore to Rs.2 crore, except for fake invoices.
   • Reduction in the compounding amount from the current tax range of 50%-150% to the range of 25%-100%.
   • Certain offences under Section 132(1) clauses (g),(j), and (k) of the CGST Act, such as obstruction or restricting any officer from discharging their duties, intentional tempering of material evidence, and failure to provide the information.
5. The GST Council decided to amend the CGST Rules and directed CBIC to issue a Circular for the procedure to file a refund application by such unregistered buyers upon cancellation of the contract/ agreement for the sale of services such as flat/house construction and long-term insurance policy and upon the expiry of the time limit to issue credit note by the supplier.
6. From 1st October 2023, GST-unregistered suppliers, dealers and composition taxable persons can sell goods through e-commerce operators within the state, subject to some conditions.
7. No Claim Bonus (NCB) offered by insurance companies, especially in motor vehicle insurance, is allowed as a deduction from the taxable premium amount for valuation purposes.
8. CGST Rule 37(1) will be amended retrospectively from 1st October 2022 for ITC reversal to provide for reversal of input tax credit as per the second proviso to Section 16 of CGST Act, only to the extent of the invoice amount unpaid to the supplier versus the value of the supply, along with tax payable.
9. The GST Council decided to insert Rule 37A in CGST Rules that will define steps to reverse ITC claimed on taxes undeposited by the supplier within a specified date. Further, the process of re-availing such ITC where the supplier pays it subsequently will be provided.
10. CGST Rule 12(3) will be amended to introduce a facility to the GST-registered TDS deductor and TCS collectors for applying for the cancellation of GST registration.
11. Biometric-based Aadhaar authentication, as well as risk-based physical verification of GST registration applicants, is proposed in Gujarat on a pilot basis with amendments in CGST Rules 8 and rule 9 for curbing fake and fraudulent registrations.
12. Form REG-01 will capture PAN-linked mobile numbers and e-mail IDs (from the CBDT database) with OTP verification to restrict misuse of the PAN of a person.
13. Amendment that restricts filing of all GST returns and statements can be filed after a maximum of three years from the due date.
14. E-commerce operators and sellers are now able to report sales made through them on GSTR-1, as permitted by CGST Act Sections 52 and 9(5).
15. Insertion of CGST Rule 88C and form DRC-01B for intimation to the taxpayer, by the GST portal, for any tax liability differences between GSTR-1 and GSTR-3B for a tax period over a defined amount and/ or percentage, to either pay or explain the difference.
16. Additionally, if the taxpayer has not deposited the tax specified in the intimation, a new clause (d) will be added to CGST Rule 59(6) to restrict the filing of GSTR-1 for upcoming tax months. Moreover, if he didn’t respond to the notification of the pending unpaid tax without the help of the tax officials, the restriction might still be in effect.