GST Council doubles threshold for launching prosecution to Rs 2 crore

New Delhi, December 17

The GST Council on Saturday doubled the threshold for launching prosecution from Rs 1 crore to Rs 2 crore, except for the offence of issuance of invoices without the supply of goods or services or both.

50% tax on SUVs

• Vehicles of engine capacity over 1,500cc, length exceeding 4,000 mm, ground clearance of 170 mm & above to attract an effective tax rate of 50%
• This includes 28% Goods & Services Tax and 22% cess

Tax on biofuel cut

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• No criminal action in cases, except fake invoicing, involving tax up to Rs 2 cr
• Tax on ethyl alcohol (used for blending with petrol) reduced from 18% to 5%
• Small vendors can supply goods for online selling

It also recommended decriminalising certain types of offences, including obstruction or preventing any officer in discharge of his duties, a deliberate tampering with material evidence and failure to supply information. For this, the council also recommended reducing the compounding from the present range of 50 per cent to 150 per cent of the tax amount to 25 per cent to 100 per cent.

The council also clarified on the SUV issue by stating that ones with an engine capacity exceeding 1,500 cc and length exceeding 4,000 mm with a ground clearance of 170 mm or above will attract a 22 per cent compensation cess. Briefing the media after the 48th Goods and Services Tax Council meeting held virtually, Finance Minister Nirmala Sitharaman said the council could decide on only nine of the 15 agenda items due to paucity of time, but added no new taxes had been brought in. The council could not discuss taxation on tobacco and gutkha. GST levy on online gaming, casinos and horse racing was not part of the agenda.

It also clarified that no GST is payable where the residential dwelling is rented to a registered person in his personal capacity for own use and on his own account.

The council approved amendments to the GST Act and GST Rules to allow unregistered suppliers and composition taxpayers to make intra-state supply of goods through e-commerce operators, subject to certain conditions.

“In view of this, it was extremely pertinent that small vendors, who do not fall under the purview of the GST, were not able to conduct online business, thus causing a huge loss of market and business opportunities,” said an official release.

The council also decided to lower tax rates on husk of pulses to nil from 5 per cent.