Mode: Video Conference
Chairperson: Shri Arun Jaitley, Hon’ble Union Finance Minister

Summary of Points Finalized in the Meeting

Deemed Ratification of Notifications and Circulars
The Council approved deemed ratification of all GST-related notifications, circulars, and orders issued by the Central Government and corresponding State notifications issued up to April 2018. The ratification included Central, Integrated, and Union Territory Acts and Rules.
27th GST Council Minutes, page 2

Decisions of the GST Implementation Committee (GIC)
The Council took note of decisions made by the GIC in its 14th to 16th meetings. It approved the extension of the deadline for filing TRAN-1 forms up to 10 May 2018 for taxpayers affected by technical issues, in accordance with a Bombay High Court order.
27th GST Council Minutes, page 3

Review of Revenue Position

Average GST collection for FY 2017–18 was around ₹90,000 crore per month.

For April 2018, revenue touched ₹1.03 lakh crore, showing ~15% growth.

Noted that 16–18% shortfall remained versus protected revenue, with high gaps in States like Himachal Pradesh, Uttarakhand, Punjab, and Jammu & Kashmir.

The Chief Economic Adviser was directed to study reasons for shortfalls in select States (Punjab and Bihar) and suggest revenue-augmentation measures.

Council also approved compensation release for March 2018.
27th GST Council Minutes, pages 4–6

Clarification on Applicability of IGST on Warehoused Goods
It was clarified that supply of warehoused goods before clearance for home consumption shall not attract IGST. Tax shall be payable only when goods are cleared from the bonded warehouse.
27th GST Council Minutes, page 7

Change in Shareholding Pattern of GST Network (GSTN)
The Council approved converting GSTN into a 100% Government-owned company (50% Centre and 50% States).

Board composition: 4 Directors from Centre, 4 from States, 3 Independent Directors, and CEO & Chairman.

Existing staff and deputationists to continue under current terms for at least five years.

HR flexibility to be retained for long-term operational efficiency.
27th GST Council Minutes, pages 8–9

Incentivising Digital Payments under GST Regime
The Council discussed providing 2% tax rebate (up to ₹100 per transaction) on digital payments for Business-to-Consumer transactions to encourage compliance.

Multiple views emerged: some supported it as pro-compliance, others opposed due to rural exclusion and potential complexity.

The Council decided to form a Group of Ministers (GoM) to review all aspects and submit recommendations within 15 days.
27th GST Council Minutes, pages 10–15

Imposition of Cess on Sugar and GST Rate on Ethanol

Proposal to levy Sugar Cess @ ₹3/kg on top of 5% GST to support sugarcane farmers was discussed.

Also proposed: reduce GST on ethanol from 18% to 12% (only for supply to oil marketing companies for petrol blending).

States were divided—some supported for farmer relief; others opposed citing violation of “One Nation, One Tax” principle.

The Council deferred decision and formed a GoM to examine the issue in detail.
27th GST Council Minutes, pages 16–18

Implementation Schedule of Intra-State e-Way Bill
The Council noted successful rollout of inter-State e-Way Bill and approved staggered implementation for intra-State movement of goods across all States by 1 June 2018.
27th GST Council Minutes, page 41