Venue: Vigyan Bhawan, New Delhi

Summary of Points Finalised in the Meeting

1. Ratification of Notifications, Circulars, and Orders

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

2. E-Way Bill Requirement for Gold and Precious Stones

Approved insertion of Rule 138F in CGST/SGST Rules, allowing States to mandate e-way bills for intra-state movement of gold and precious stones under Chapter 71.
Decision Finalised: Approved as recommended by Law Committee.

3. Capacity-Based Taxation and Special Composition Scheme

Introduced a special procedure under Section 148 of CGST Act for manufacturers (e.g., pan masala, tobacco).

Added Section 122A for penalties on undeclared machinery.

Recommended restricting IGST refund route for certain goods (tobacco, pan masala, mentha oil).
Effective from: 1st October 2023

4. Interest on Wrong IGST Credit Availment

Clarified that no interest is payable if wrongly availed IGST credit is reversed without utilization.
Decision Finalised: Circular to be issued accordingly.

5. Interpretation of Section 10 of IGST Act (Place of Supply)

Decided that the Place of Supply for over-the-counter sales to unregistered persons will be the address declared by the recipient on the invoice.
Decision Finalised: Approved proposed amendment.

6. E-Invoicing for Supplies to Government Entities

Clarified that e-invoicing is mandatory for registered suppliers exceeding the turnover threshold, even when supplying to Government departments registered only for TDS.
Decision Finalised: Circular to be issued.

7. Refund-Related Clarifications

Refund of ITC under Section 54(3) restricted to invoices appearing in GSTR-2B.

Revised undertaking formats under Circular 125/44/2019.

Clarified treatment of refund formula for exports and inverted duty cases.
Decision Finalised: Approved with modifications.

Inverted duty refund issue to be re-examined by Law Committee with inputs from Karnataka.

8. Mechanism for ITC Differences (GSTR-2B vs GSTR-3B)

Introduced Rule 88D and Form DRC-01C to identify excess ITC availed and seek explanation or recovery.

Threshold: Difference > 20% and > ₹25 lakh.
Decision Finalised: Approved.

9. Recovery of Tax and Interest (Rule 88C(3))

Introduced Rule 142B and Form DRC-01D for recovery where GSTR-1 liability exceeds GSTR-3B without payment.
Decision Finalised: Approved with Gujarat’s suggestion to include “or interest.”

10. Annual Return for FY 2022–23

Continued earlier relaxations; exempted taxpayers with turnover up to ₹2 crore.
Decision Finalised: Approved.

11. Strengthening GST Registration

Amended rules to mandate:

Furnishing bank details within 30 days.

Auto-suspension for non-furnishing.

Restrict filing of GSTR-1 if bank details not provided.

Enabled physical verification in high-risk cases, even with Aadhaar authentication.
Decision Finalised: Approved.

12. Biometric-Based Aadhaar Authentication Pilot

Approved Puducherry for pilot project; Andhra Pradesh also included.
Decision Finalised: Approved and Chairperson authorized to extend to other States.

13. TCS Liability under Multiple E-Commerce Operators

Clarified that TCS collection under Section 52 will be done by the supplier-side ECO who releases payment to the supplier.
Decision Finalised: Circular and notification approved.

14. ITC on Warranty Replacements

Clarified that manufacturers providing warranty replacements or repairs without consideration are eligible for ITC; no reversal required.
Decision Finalised: Circular to be issued.

15. Amendments in CGST Rules due to Finance Act 2023

Prescribed changes in Rule 43, Rule 162 (compounding), and new Rule 163 (consent-based information sharing).

Implementation Dates:

Tribunal provisions: 1st August 2023

Other GST-related changes: 1st October 2023
Decision Finalised: Approved.

16. GST Appellate Tribunal (Appointment Rules, 2019)

Approved draft rules with officer-suggested edits (e.g., minor textual change).
Decision Finalised: Approved.

17. Taxability of Shareholding in Subsidiaries

Clarified that mere holding of shares in a subsidiary is not a taxable supply under GST.
Decision Finalised: Approved; Law Committee to further examine other service components.

18. General Amendments in CGST Rules

Approved procedural amendments (invoice details, refund procedures, manual appeals, etc.).

Telangana’s issue on wrong IGST credit to States to be reviewed in next meeting.
Decision Finalised: Approved with review direction.

19. Transitional Credit (Filco Trade Case)

Approved special procedure under Section 148 for appeals related to TRAN-1/TRAN-2 claims reopened under Supreme Court directions.
Decision Finalised: Approved.

20. Input Service Distributor (ISD) Mechanism & Services Between Distinct Persons

Clarified ISD mechanism not mandatory retrospectively, but will be mandatory prospectively for HO–BO credit distribution.

Employee salary need not be mandatorily included in value of internal services where full ITC unavailable.
Decision Finalised: Approved with Officers’ suggested clarification.

Overall Outcome:
The 50th GST Council Meeting finalised comprehensive legal, procedural, and rate-related decisions — notably on ITC reconciliation, registration fraud control, ISD mechanism, refund clarifications, and tribunal establishment — laying groundwork for the upcoming GST Appellate Tribunal and enhanced compliance through technology and verification.