Summary of Points Finalized in the Meeting

1. Key Decisions of GST Implementation Committee (GIC)

Deferred implementation of TDS (Section 51) and TCS (Section 52) provisions under CGST/SGST Acts by two months due to lack of preparedness of government agencies. Page 3

Deferred application of Sections 42(9) and 43(9) of CGST/SGST Acts and Tourist Refund (Section 15) of IGST Act to a later date. Page 3

Exempted second-hand goods dealers using the margin scheme under Rule 32(5) from tax under Section 9(4). Page 3

Approved a uniform 18% tax rate for all IT software, regardless of delivery mode. Page 4

Decided not to implement the proposal of 40% deemed credit on SGST for previously excise-exempt goods after objections from several States. Page 5

2. Approval of Draft GST Rules and Related Forms

Approved the following rules and related forms with modifications:

Compounding of Offences Annexure 4, Page 23

Enforcement (Inspection, Search, and Seizure) Annexure 5, Page 24

Refund Rules amended (Rule 96) to accommodate exports without payment of tax. Page 6

Demand and Recovery Rules finalized and approved. Page 6

3. Other Major Decisions

Approved IGST notification provision deeming freight value as 10% of CIF value for ocean freight imports. Page 6

Granted post-facto adoption of CGST Rules as IGST Rules, effective from 22 June 2017. Page 7

Approved amendment to Rule 117(1) to exclude cesses from transitional credit. Page 7

Clarified via circular that IGST on High Sea Sales is payable only once at the time of import, with the high-sea margin included in the taxable value. Page 8

4. Rate Revisions and Sectoral Discussions

After deliberation, the Council reduced GST rate on fertilizers from 12% to 5% to benefit farmers. Page 10

Agreed that exclusive tractor parts will be taxed at 18%, with the Chairperson authorized to notify the list after review. Page 11

5. Next Meeting

The Council decided to meet on the first Saturday of every month (beginning August 2017) for ongoing review of GST implementation. Page 11