Venue: Chandigarh

Summary of Points Finalized in the Meeting 

1. Ratification of Notifications, Circulars and Orders
The Council ratified all notifications, circulars, and orders issued by the GST Council and GST Implementation Committee (GIC). States also ratified their corresponding notifications on the same subjects.
47th GST Council Minutes, page 5

2. Refund under Inverted Duty Structure
Clarified that refund of accumulated ITC under the inverted duty structure will be admissible where input and output goods are the same, and accumulation arises due to concessional rate notifications, but not applicable to nil-rated or exempted supplies.
47th GST Council Minutes, page 6

3. Amendment to Rule 89(5) (Refund Formula)
Council approved the revised formula for refund computation in line with Supreme Court’s directions in VKC Footsteps case to ensure equitable distribution between input goods and services.
47th GST Council Minutes, page 7

4. Authority for Recurring Show Cause Notices (SCN)
Recurring SCNs arising from enforcement by either Centre or State will be issued by the authority having jurisdiction over the taxpayer. Refunds, however, will be handled by the jurisdictional authority.
47th GST Council Minutes, page 7–8

5. Clarification on Fake Invoices
Council approved a circular clarifying that no GST demand arises in absence of actual supply, but penalties and prosecution under Sections 122 and 132 apply.
47th GST Council Minutes, page 9

6. Notification of Finance Act, 2022 (Sections 110(c) & 111)
Approved notification to allow transfer of balances in electronic cash ledgers across distinct persons and retrospective amendment limiting interest to wrongly availed and utilised ITC only (18%).
47th GST Council Minutes, page 10–11

7. Clarifications on Various GST Issues
Circulars to be issued for:

Refund by recipients of deemed export supplies not restricted by Section 17.

Clarifications on Section 17(5) (input tax credit eligibility).

ITC utilisation limited to output tax, not for penalties or interest.
47th GST Council Minutes, page 11–12

8. Allowing Small and Composition Dealers on E-Commerce Platforms
Council approved allowing unregistered and composition dealers to make intra-state supplies through e-commerce platforms from 1 January 2023, subject to system readiness and safeguards.
47th GST Council Minutes, page 13–15

9. Refund on Export of Electricity
Approved refund mechanism for exporters of electricity, clarifying procedure and relevant date for filing refund claims based on Regional Energy Accounts.
47th GST Council Minutes, page 16

10. Annual Returns for FY 2021–22
Simplified forms GSTR-9 and 9C similar to previous year; exemption threshold of ₹2 crore continued.
47th GST Council Minutes, page 17

11. Comprehensive Amendments in GSTR-3B
Approved major changes in GSTR-3B for auto-population, ITC reversals, and improved data reconciliation. Draft to be placed in public domain for stakeholder comments.
47th GST Council Minutes, page 18–19

12. Automatic Revocation of Suspended GSTINs
Council approved automatic revocation of suspended registrations upon filing pending returns. Turnover limits for suspension reduced in stages from ₹50 lakh to nil over six months.
47th GST Council Minutes, page 20–21

13. Extension of Limitation under Section 168A
Limitation for demand orders for FY 2017–18 extended to 30th September 2023; COVID-19 period (Mar 2020–Feb 2022) excluded for refund claims and erroneous refund demands.
47th GST Council Minutes, page 22

14. Late Fee Waiver & CMP-08 Extension for Composition Dealers
Late fee waived for delay in GSTR-4 filing for FY 2021–22 up to 28 July 2022; CMP-08 due date for Q1 FY 2022–23 extended to 31 July 2022.
47th GST Council Minutes, page 23

15. Refund of ITC to Duty-Free Shops
Approved alignment of GST rules with Bombay and Kerala High Court rulings to treat supplies by Duty-Free Shops as zero-rated. Recommended rescinding Rule 95A retrospectively.
47th GST Council Minutes, page 24–25