Mode: Virtual (Video Conferencing)

Summary of Points Finalized in the Meeting

1. Ratification of Notifications and Orders

The Council ratified notifications, circulars, and orders issued by the GST Council and the GST Implementation Committee since the previous meeting.
Decision Finalised: Ratified.

2. Fitment Committee Recommendations

Goods:

Pencil Sharpener: Correction approved to align tax rate at 18% (issue of inversion to be re-examined).

By-products of Dal Milling (Kanda, Churi, Chuni, Chilka): Fully exempted from GST irrespective of end use.

SUVs: Clarified that all four conditions (popularly known as SUV, engine >1500cc, length >4000mm, ground clearance ≥170mm) must be met for 22% Compensation Cess.

Mentha Arvensis: Brought under Reverse Charge Mechanism.

Carbonated Beverages with Fruit Juice: Classified under HSN 2202 99, attracting 28% GST + Cess.

‘Rab’ (Rab-Salawat): Classified under HSN 1702 (18% GST).

Ethyl Alcohol for Refineries: Concessional rate of 5% extended to standalone refineries (for ethanol blending).

Fryums: Classified under HSN 1905 (18% GST).
Decision Finalised: Approved.

Services:

RCS Scheme: GST exemption on Viability Gap Funding to airlines extended.

Toll Annuity Exemption: Removed entry 23A; now taxable.

Railways: Clarified GST applicability on apportionment of revenue between Railways and SPVs.

Air Force Officers’ Mess: Clarified not taxable (extended to similar messes).

RuPay/BHIM Incentives: Clarified as non-taxable subsidies.

Rental of Dwelling by Proprietor: Clarified exemption available when rented for own residential use.
Decision Finalised: Approved except “Positive List of Services,” which was deferred.

3. Penal Interest on Delayed Bank Remittance

Approved report on levy of penal interest for delayed GST remittances by banks to RBI accounts during initial GST implementation.
Decision Finalised: Approved.

4. National Anti-Profiteering Authority (NAA)

Reviewed and approved performance reports (April–Nov 2022).

Confirmed transfer of work to Competition Commission of India (CCI) from 1 December 2022.
Decision Finalised: Approved.

5. Ad-Hoc Customs Exemptions

Three ad-hoc exemptions under Section 25(2) of Customs Act placed before the Council.
Decision Finalised: Taken on record.

6. Law Committee Recommendations

(a) Aadhaar-Based Biometric Authentication

Approved amendments in CGST Rules for biometric authentication of high-risk registrants (pilot in Gujarat).
Decision Finalised: Approved.

(b) Refund to Unregistered Persons

Approved refund mechanism for unregistered buyers in cases like property booking cancellation or long-term insurance termination.
Decision Finalised: Approved (with procedural circular).

(c) Decriminalization of GST Law

Approved:

Increased prosecution threshold from ₹1 crore to ₹2 crore (except for fake invoice cases).

Deletion of offences already covered under IPC.

Reduced compounding penalty to 25–100% of tax.
Decision Finalised: Approved with exceptions for fake invoices.

(d) Interest on Refund Delay

Approved amendments in Rule 94 and Section 56 to exclude delay period attributable to the applicant.
Decision Finalised: Approved.

(e) Clarification on Re-determination (Section 75(2))

Approved mechanism for re-determination of tax demand after appellate or revisional orders.
Decision Finalised: Approved.

(f) Amendments in CGST Rules

Approved introduction of:

Rule 37A – ITC reversal for non-payment within 180 days.

Rule 88C – Mechanism for liability mismatch (GSTR-1 vs 3B).

Rule 109C – Withdrawal of appeal procedures.

Rule 8(4A)/(4B) – Aadhaar authentication provisions.
Decision Finalised: Approved.

(g) Retrospective Effect of Schedule III (Paras 7, 8(a), 8(b))

Approved retrospective application from 1 July 2017 to clarify non-taxability of certain transactions (e.g., employee-employer, high-sea sales).
Decision Finalised: Approved.

(h) GSTR-1 vs GSTR-3B Differences

Approved mechanism using Form DRC-01B for resolving liability mismatches.
Decision Finalised: Approved.

(i) Clarifications Issued

Approved clarifications on:

No Claim Bonus by insurers.

E-invoicing applicability.

ITC mismatch (GSTR-3B vs GSTR-2A for FY 2017–18, 2018–19).

Tax dues treatment under Insolvency Code.
Decision Finalised: Approved.

(j) CSR Expenditure

Clarified that Input Tax Credit not available on goods/services used for CSR obligations under Companies Act.
Decision Finalised: Approved.

7. GSTN and System Reforms

Approved:

Transition to new revenue model.

Waiver of interest on delayed AUC receipts.

Data archival policy for GST system.

Document Identification Number (DIN) implementation for back offices.
Decision Finalised: Approved.

8. GoM and Committee Reports

GoM on GST Tribunal: Report received for future consideration (no final decision).

GoM on COVID Cess (Sikkim) and GoM on e-Way Bill for Gold: Formally closed.
Decision Finalised: Closed.

9. GST Audit and Capacity Building

Approved Model All-India GST Audit Manual and associated reports of committees on audit data analytics and service-sector audit capacity.
Decision Finalised: Approved.

Overall Outcome

The 48th GST Council Meeting finalised crucial procedural and legal amendments — introducing biometric registration, decriminalisation of offences, clarity on SUV cess, refunds, and CSR ITC, and establishing a standardised mechanism for liability and ITC mismatches.
The meeting also saw closure of older GoMs and reinforced GSTN’s digital reforms, laying groundwork for enhanced transparency and compliance efficiency across the GST ecosystem.