GST Council hits half-century An all-round performance

While marking its 50th meeting milestone, the GST Council has announced a slew of recommendations relating to changes in GST rates, measures for trade facilitation and for streamlining GST compliances.

Some of the key announcements are analyzed below:

Comments on trade facilitation measures

• The clarity on no GST liability as well as no liability to reverse ITC in cases involving warranty replacement of parts and repair services during the warranty period should provide a much-needed respite to the manufacturers. There were debates after the Hon’ble Supreme Court judgment in the case of Mohd. Ekram Khan & Sons vs. CTT [(2004) 6 SCC 183], pertaining to the erstwhile State Value Added Tax regime, about taxing such supplies. It is heartening that the GST Council has taken a very pragmatic view of the matter and clarified the issue in favor of the trade, thus, saving a huge amount of time and cost in litigation on this issue.
• The scheme of classification has an entry 99717 for services of holding financial assets such as equity, securities, and other assets of trust and funds, etc.