- Amendments and Clarifications:
- Retrospective amendment changes “plant or machinery” to “plant and machinery” in the CGST Act, 2017.
- Schedule III amendment clarifies that goods warehoused in SEZ/FTWZ are not considered a supply.
- Clarifications on voucher taxability: principal-to-principal basis transactions not subject to GST; related services attract GST.
- Circulars for Resolving Ambiguities:
- E-commerce operators need not reverse ITC for certain supplies.
- ITC claims for Ex-Works contracts clarified.
- Waiver and capping of late fees for FORM GSTR-9C for specific years.
- Compliance Measures:
- Implementation of a Track and Trace Mechanism for evasion-prone commodities.
- Online services must record recipient’s state name on invoices for place of supply determination.
- Reduced pre-deposit for penalty-only appeals to 10%.
- Industry-Specific Impacts:
- Agriculture: Reduced GST on fortified rice and certain food inputs.
- Automotive: Increased GST on old and used vehicles to 18%.
- Healthcare: Exemption for gene therapy and IAEA imports.
- Additional Measures:
- Streamlining hotel and restaurant GST rates based on actual value.
- Support for exports through reduced compensation cess.
- Clarifications on tax rates for construction materials and FMCG products like popcorn.
Source Darda Advisors
