48th GST Council Gives Nod To Decriminalise Specific Offences: FM

New Delhi: The 48th GST Council meeting held in the national capital on Saturday under the leadership of Union Finance Minister ended without any tax increase on any item.

At the conclusion of the meeting Sitharaman said “In this GST Council meeting, there has not been any tax increase on any item. Everything that has been done is to issue clarifications where ambiguity of interpretations prevails.”

“Majority of all that has been discussed is Fitment Committee’s recommendations have been brought to the Council on many items where there is confusion of rates. In the case of SUVs, we have clarified that the higher rate of 22% compensation cess is applicable to motor vehicles fulfilling four conditions – popularly known as an SUV and has an engine capacity of 1500 cc, length beyond 4,000 mm and ground clearance of 170 mm.”

“The meeting had to be concluded by 1.30 p.m. as most state ministers had other engagements, so about seven agenda items, including the GoM report on setting up of GST Appellate Tribunals, could not be taken up. It also could not discuss taxation on tobacco and gutkha due to paucity of time,” said Sitharaman.

These pending items will be taken up at the next GST Council meet, which Sitharaman expressed hope will be held as in-person meeting. “We are trying to take up the GST Tribunal issue at the earliest possible,” she said.

Meanwhile, Revenue Secretary Sanjay Malhotra said that the GST Council agreed to decriminalise certain offences; threshold of launching prosecution doubled to Rs 2 crore.

The Revenue Secretary further said “Tax rate on husk of pulses reduced to nil from 5%.”

“While a group of ministers of the GST Council submitted its report on the tax regime for casinos, online games and horse racing to the Finance Minister a couple of days, it was not circulated or included in the agenda as there was too little time for members to study its recommendations,” said Malhotra. This report will also now be likely taken up at the next GST Council meeting.

“The major decisions the GST Council took today included one path-breaking recommendation regarding decriminalising three kinds of offences under the GST law — they pertain to obstruction to or preventing officers from discharging their duty, deliberate tampering of evidence, failure to supply the information. Moreover, the threshold limits of tax amounts for launching prosecution under any criminal offence defined under the GST laws has been raised from Rs 1 crore to Rs 2 crore for all offences, other than those involving fake invoices. In the same line, in order to reduce the workload of courts, the compounding amount under certain offences has been reduced from 50% to 200% of the amount, to 25% to 100% of the amount,” Malhotra said.