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The GST Council approves the nationwide e-Way Bill System for inter-State movement of goods on a trial basis from 16 January 2018 and on a compulsory basis from 1 February 2018. States choose their own implementation dates for intra-State e-Way Bill systems, but all states must implement it by 1 June 2018. The Council also permits specific refunds without matching inward and outward supplies and without excluding provisionally accepted input tax credit. Applicants furnish an undertaking with the refund application to repay the amount if they fail to comply with Section 16(2)(c) read with Section 42(2) of the CGST or SGST Act.
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MINUTE BOOK
Minutes of $24^{\text{th}}$ GST Council Meeting held on 16 December 2017
The twenty fourth Meeting of the GST Council (hereinafter referred to as ‘the Council’) was held on 16 December, 2017 through video conferencing under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley (hereinafter referred to as the Chairperson). The list of the Hon'ble Members of the Council who attended the meeting through video conference is at Annexure 1. The list of officers of the Centre, the States and the GST Council who attended the meeting through video conference is at Annexure 2.
The following agenda items were listed for discussion in the $24^{\text{th}}$ Meeting of the Council: -
Confirmation of the Minutes of $23^{\text{rd}}$ GST Council Meeting held on 10 November 2017.
Introduction of a nationwide e-Way Bill System with effect from 01.01.2018.
Any other agenda item with permission of the Chairperson.
The Hon'ble Chairperson welcomed the Members of the Council and then took up discussion on the agenda items.
Discussion on agenda items:
Agenda item 1: Confirmation of the Minutes of the $23^{\text{rd}}$ GST Council Meeting held on 10 November, 2017
4.1. In paragraph 17, reference of ‘granite’ may be added in the statement of the Hon'ble Minister from Rajasthan and that his statement may read as follows: 'The Hon'ble Minister from Rajasthan observed that marble and granite were neither luxury items nor sin goods and that a large number of persons were engaged in marble and granite industry. He added that marbles and granite were of different grades and quality. He argued to keep marble and granite tiles in the rate slab of 18%'.
4.2. In paragraph 17.22, the following statement marked in bold may be added after the statement 'The Hon'ble Minister from Rajasthan stated that kota stone was a variant of sand stone and should not be taxed at the rate of 18%; GST rate on kota stone may be reduced to 5%.'
4.3. In paragraph 19.3, instead of the words ‘He stated that there would also be no import of such statues’, the following statement of the Hon'ble Minister may be incorporated: "He stated that idols of deities were exempted across world, be it USA, UK, Canada, Malaysia,
CHAIRMAN'S INITIALS
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Singapore, etc. This was an item of local importance and small artisans of the State were engaged in this field. Therefore, these items may be exempted."
4.4. The Government of Gujarat by an email dated 15.12.2017 had suggested to replace the whole of paragraph 21.4 of the Minutes with the following: ‘Secretary (EA), Government of Gujarat, Shri Sanjeev Kumar and Dr. P.D. Vaghela, CCT, Gujarat, stated that there was a requirement of clarification with regard to tamarind kernel powder. As far as phosphoric acid was concerned, the Gujarat State Fertilizer Corporation(GSFC) had represented that as the phosphoric acid was taxed at the rate of 18% and the rate of tax on fertilizers had been reduced to 5%, this had resulted into huge working capital blockage as GSFC could claim refund only after filing of returns. The Gujarat Chamber of Commerce and Industry had represented that the organizations running effluent treatment plants and having benefit of Section 12AA of the Income Tax Act, 1961 were exempted from payment of tax on such plants. This did not allow such organizations to claim input tax credit. Its representation was that there should be a tax for such organizations at the rate of 5% so that they could claim input tax credit. The Secretary suggested that the Fitment Committee could examine these issues. The Council agreed to this suggestion.’
4.5. The Secretary stated that the changes proposed in the Minutes by the Governments of Rajasthan and Gujarat only involved changing their versions recorded in the Minutes and the Council could agree to the same. The Council agreed to the suggestion. The Secretary further stated that in case there were no other comments, the Council could approve the Minutes but if Members felt that more discussion was required on the Minutes, it could be deferred and taken up for discussion during the next meeting of the Council. There were no other comments on the Minutes. The Hon'ble Ministers from Kerala, Goa and Tamil Nadu suggested to confirm the Minutes during this meeting itself. The Council agreed to the same.
5.1. To replace the version of the Hon'ble Minister from Rajasthan in paragraph 17 of the Minutes with the following: ‘The Hon'ble Minister from Rajasthan observed that marble and granite were neither luxury items nor sin goods and that a large number of persons were engaged in marble and granite industry. He added that marbles and granite were of different grades and quality. He argued to keep marble and granite tiles in the rate slab of 18%.’
5.2. To replace the version Hon'ble Minister from Rajasthan in paragraph 17.22. of the Minutes with the following: ‘The Hon'ble Minister from Rajasthan stated that kota stone was a variant of sand stone and should not be taxed at the rate of 18%; GST rate on kota stone may be reduced to 5%.’
5.3. To replace the bracketed version of the Hon'ble Minister from Rajasthan in paragraph 19.3. of the Minutes (‘He stated that there would also be no import of such statues’) with the following: ‘He stated that idols of deities were exempted across world, be it USA, UK, Canada, Malaysia, Singapore, etc. This was an item of local importance and small artisans of the State were engaged in this field. Therefore, these items may be exempted.’
CHAIRMAN'S INITIALS
5.4. To replace the whole of paragraph 21.4 of the Minutes with the following: ‘Secretary (EA), Government of Gujarat, Shri Sanjeev Kumar and Dr. P.D. Vaghela, CCT, Gujarat,
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stated that there was a requirement of clarification with regard to tamarind kernel powder. As far as phosphoric acid was concerned, the Gujarat State Fertilizer Corporation had represented that as the phosphoric acid was taxed at the rate of 18% and the rate of tax on fertilizers had been reduced to 5%, this had resulted into huge working capital blockage as GSFC could claim refund only after filing of returns. The Gujarat Chamber of Commerce and Industry had represented that the organizations running effluent treatment plants and having benefit of Section 12AA of the Income Tax Act, 1961 were exempted from payment of tax on such plants. This did not allow such organizations to claim input tax credit. Its representation was that there should be a tax for such organizations at the rate of 5% so that they could claim input tax credit. The Secretary suggested that the Fitment Committee could examine these issues. The Council agreed to this suggestion.’
