• Declaration from GTA for payment of tax on forward charge basis shall not be required every year and shall be deemed to have been exercised for future years unless declaration for reverting to RCM has been filed.

• Services provided by director in his personal /private capacity shall not be taxable under RCM, only such services which are provided in the capacity of director of the company shall attract RCM in the hands of the body corporate.

• Reduction in rates to Food & Beverages shall attract the same rate as that of restaurant service in case it is supplied independently in the cinema halls, however in case the same is provided clubbed together with sale of ticket, then such supply shall qualify as composite supply where the principal supply shall be exhibition of cinema.

• Casino service, Horse racing and online gaming service are to be taxed at a uniform rate of 28% on full value of supply.

• Recommended rules governing appointment of President and members of GST Tribunal and also recommended that provisions related to functioning of Tribunal shall come into effect as on 01-08-2023.

• Clarification of various services to be issued in matters of:

➥ Taxability of internally generated services provided by 1 distinct person to another and that ISD is not mandatory for distribution of common services procured from 3rd parties. Further, amendment may be made in GST laws, to make ISD mandatory prospectively.

➥ Warranty replacement and repairs during warranty without any consideration shall not attract GST nor shall require any reversal of input tax credit.

➥ Refund of accumulated input tax credit to be restricted to ITC reflected in GSTR 2B.

➥ Manner of calculation of interest under Section 50(3) for wrong availment and utilization of IGST Credit shall be taken together with balance of CGST & SGST amounts for the purpose of calculation as provided in Rule 88 of CGST Rules, 2017.

➥ Holding of shares of subsidiary company by a holding company shall not be treated as supply of service, and shall not attract GST.

➥ The method prescribed in Circular 183/2022 dated 27-12-2022 for verification of Input tax credit for FY 17-18 and FY 18-19 on the basis of Form GSTR 2A, shall also apply for period 01-04-2019 to 31-12-2021.

• Stringent conditions to be imposed for obtaining registrations under GST and strengthen the process of registration so as to deter fraudulent registration by providing valid bank account details, mandatory physical verifications, suspensions in case bank account not furnished etc.

• Proposed inclusion of new rules along with amendment to the Act, to deal with differences appearing between ITC availed in GSTR 3B vs. ITC appearing in GSTR 2B to reduce mismatch, similar to the recent inclusions of differences appearing between outward supplies as furnished in GSTR 1 and GSTR 3B.