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What is expected in the next GST council meeting?

#Tune into today’s update on “What is expected in the next meeting of GST Council?”

Watch Aditi sharing the quick update on how the centre is expecting to rationalize the GST rates and a correction of the inverted duty structure.

The Council has already approved it in many sectors, including textiles and footwear, which will be implemented from January 1, 2022.

The recommendations of GoM’s report are expected to be finalized before the expected meeting of the GST council in January 2022.


Increase in GST Rates of MMF Textiles | #QuickBytes

The Ministry of Textiles notified the uniform goods and services tax (GST) rate on MMF, MMF yarn, MMF fabrics, and apparel.

These Changed tax rates will come into effect from January 1, 2022. Currently, the tax rate on MMF, MMF yarn, and MMF fabrics is 18 percent, 12 percent, and 5 percent, respectively.

Watch this video featuring Aditi Aggarwal, #LawWiser, where she explains what is the new reform and what was the need to bring changes to MMF Textiles.

She further explains what would be the possible implications of these new reforms.

#StayTuned for more legal updates


GST Updates 2021 – Ecommerce Operators | In A Minute

#Watchnow #Inaminute video where Jatin Arora, Partner, Phoenix Legal takes us through this GST Council update in relation to e-commerce operators.

GST Updates 2021 – In the 45th GST Council meeting, it was decided to shift the burden of tax on the restaurant services to e-commerce operators like #Swiggy#Zomato through whom these services are delivered. In the video, Jatin quickly explains what this update is about and the impact that it is likely to have on e-commerce operators.

He takes us through the details that this is not a new tax introduced on e-commerce operators. The restaurant charges 5% GST on their supplies. Also, the e-commerce operators pay 18% GST on the commission earned by them.

This will be in effect from 1st January 2022 and instead of the restaurants, the e-commerce operators will charge the tax on the food supplies. The e-commerce operators will charge GST on every supply that they will make, irrespective of whether the restaurant supplying the food is exempt from GST or not. This means there will be additional burden on compliance side for restaurants. The e-commerce operators will also have to do changes in their software to accommodate this change and do additional compliance.

An important issue to be considered is that the restaurants are not eligible to avail input tax credit (ITC) for their supplies. Whereas the e-commerce operators do avail ITC. For more clarity on these points, we need to watch out for the notifications issued by the government.

Stay tuned for more GST updates happening in 2021

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Top 45th GST Council Meeting Updates | Harsh Shah | LawWiser #Shorts

#Watchnow LawWiserShorts on Top GST Council Updates by Harsh Shah, Partner, Economic Law Practice (ELP).

The 45th GST Council Meeting chaired by Finance Minister Nirmala Sitharaman was the first in-person meeting of the GST Council in nearly two years. Every GST council meeting creates buzz, as many sectors and industries are looking at revisions in GST rates and other reliefs in the process.

Some of the top updates included an increase in GST rates on ores and concentrates of metals such as iron, copper, aluminium and zinc, which has increased from 5 per cent to 18 per cent and those on specified renewable energy devices and parts from 5 per cent to 12 per cent. While the increased rate may result in higher GST, since most of these products are essentially used for taxable supplies and B2B transactions, the increase in rate may be a pass through as it will be available as a credit in the supply chain.

The increase in rate may take care of the potential inverted duty structure, in some cases where the GST on the procurement side (for instance, GST rate (18%) being higher on mining) was higher than the GST on the final product (5%). In the 45th GST Council Meeting, the GST rate cuts on Covid essential items have also been extended until 31 December.

There was also a clarification for payment of interest in the case of ineligible input tax credit. It is clarified that interest may be levied only if ineligible tax credits have been availed and utilised, and not merely availed. Another relief for exporters, as clarified that where an actual amount of export duty is to be paid, restriction from claiming a refund will arise. Where there is no actual export duty to be paid, the exporters can claim a refund.

#Tuneinnow to get more details on the GST council meeting. To get featured in more such conversations, write us on editorial@lawwiser.com

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