Summary of Points Finalized in the Meeting

Nomination of State Director on GSTN Board

The Council decided that all future State nominations to the GSTN Board will be made by the GST Council instead of the Empowered Committee.

The Chairperson was authorised to nominate a Director on the basis of nominations received from States.

List of Acts under GST (Compensation to States) Act, 2017

The Council deferred finalisation of the list of Acts from Central and State Governments to be notified under Section 5(4) of the Act due to discrepancies and pending corrections from several States.

Refund Restrictions under Section 54(6) of CGST Act

A proposal to restrict 90% provisional refund to newly registered exporters and those not filing returns for three consecutive months was deferred.

A Committee on Exports (comprising Central and major exporting States’ officers) was authorised to study export-related issues and suggest relief measures.

Extension for Opting into Composition Scheme

The last date for existing and newly registered taxpayers to opt into the Composition Scheme was extended to 30 September 2017, with effect from 1 October 2017.

Exemption from Registration for Handicraft Suppliers

The Council approved exemption from registration for persons making inter-State supply of handicraft goods, provided annual turnover does not exceed:

₹10 lakh for Special Category States (except J&K), and

₹20 lakh for other States.

No monthly cap would apply, but suppliers must have PAN and generate e-way bills.

Exemption for Small Job Workers (Inter-State Services)

Small job workers making inter-State supplies of services to registered persons were exempted from registration under Section 24(i), provided annual turnover was below ₹20 lakh.

The exemption excluded jewellery, goldsmith, and silversmith work under Chapter 71.

Implementation of Tax Deduction at Source (TDS) and Anti-Profiteering Mechanism

The Council decided to notify Section 51 of the CGST Act (TDS provisions) effective from 18 September 2017 and approved the constitution of Standing Committee, Screening Committees, and National Anti-Profiteering Authority (NAA).

Transitional Provisions and GST-TRAN-1 Filing

The Council discussed difficulties in filing TRAN-1 forms and directed officials to make procedural relaxations and IT system improvements to facilitate taxpayers.

Changes in GST Rules and Fitment of Rates

The Council approved various amendments to the CGST Rules, 2017 to streamline compliance and reporting procedures.

It also reviewed the Fitment Committee’s recommendations on rate changes for certain goods and services, including:

Handicrafts: Proposal to develop an alternative GST rate structure for handicrafts.

Motor Vehicles: Discussion on compensation cess applicability.

Exemption to ANTRIX Corporation and nuclear fuel supplies by DAE to NPCIL.

GST exemption on admission tickets for FIFA U-17 World Cup 2017.

Clarification on Works Contract Tax Rate for Government Projects

The GST rate on works contracts provided to Government, local authorities, or Governmental authorities for public welfare infrastructure (non-commercial use, education, health, etc.) was reduced from 18% to 12%.

The Fitment Committee was tasked with examining the definition of “Governmental Authority” and the rate for labour-intensive works.

Delegation of Authority to GIC

The GST Implementation Committee (GIC) was authorised to decide procedural matters, while policy-related issues must be referred to the GST Council (which could meet virtually for urgent decisions).