Detailed Agenda Notes 1 - 15th GSTC Meeting.

Confidential






Agenda for
15th GST Council Meeting
Volume – 1




3 June 2017




Detailed Agenda Notes 1 - Agenda for 15th GSTCM
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F.No. 99/15th Meeting/GST Council/2017
GST Council Secretariat

Room No.275, North Block, New Delhi
Dated: 25 May 2017

Notice for the 15th Meeting of the GST Council scheduled on 3 June 2017
The undersigned is directed to refer to the subject cited above and to say that the 15th Meeting of the GST Council
will be held on 3 June 2017 at Hall No. 2-3, Vigyan Bhavan, New Delhi. The schedule of the meeting is as follows:
• Saturday, 3 June 2017 : 1130 hours onwards (and may continue post lunch also)
2. The agenda items of the Council meeting are enclosed.
3. In addition, an officers’ meeting will be held on Saturday, 3 June 2017 from 1000 - 1100 hours at the same
venue, Hall No. 2-3, Vigyan Bhavan, New Delhi.
4. Please convey the invitation to the Hon’ble Members of the GST Council to attend the meeting.

- Sd -
(Dr. Hasmukh Adhia)
Secretary to the Govt. of India and ex-officio Secretary to the GST Council
Tel: 011 23092653


Copy to:
1. PS to the Hon’ble Minister of Finance, Government of India, North Block, New Delhi with the request to brief
Hon’ble Minister about the above said meeting.
2. PS to Hon’ble Minister of State (Finance), Government of India, North Block, New Delhi with the request to brief
Hon’ble Minister about the above said meeting.
3. The Chief Secretaries of all the State Governments with the request to intimate the Minister in charge of
Finance/Taxation or any other Minister nominated by the State Government as a Member of the GST Council about the
above said meeting.
4. The Chief Secretaries of Delhi and Puducherry with the request to intimate the Minister in charge of Finance/Taxation
or any other Minister nominated by the State Government as a Member of the GST Council about the above said
meeting.
5. Chairperson, CBEC, North Block, New Delhi, as a permanent invitee to the proceedings of the Council.
6. Chairman, GST Network
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Agenda items for the 15th Meeting of the GST Council on 3 June 2017
1. Confirmation of the Minutes of the 14th GST Council Meeting held on 18-19 May 2017
2. Presentation on Information Technology (IT)-readiness of GSTN for roll-out of GST
3. Approval of amendments to the draft GST Rules and related Forms (details to be informed subsequently)
4. Finalization of the rates of tax and cess to be levied on commodities remaining after the Fitment exercise in the
14th GST Council meeting
5. Presentation on concept note on operationalizing the Anti-Profiteering Clause in GST Law
6. Any other agenda item with the permission of the Chairperson
7. Date of the next meeting of the GST Council

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TABLE OF CONTENTS

Agenda
No.
Agenda Item Page No.
1 Confirmation of the Minutes of the 14th GST Council Meeting held on 18-19 May 2017 5
3 Approval of amendments to the draft GST Rules and related Forms
1. Return Rules
2. Return Forms
3. Goods and Services Tax Practitioner Forms
4. Mismatch Forms


63
73
126
135
5 Presentation of concept note on operationalizing the Anti-Profiteering Clause in GST Law 137
6 Any other agenda item with the permission of the Chairperson –
1. Applicability of GST on supply of Electricity
2. Notifying Provisions related to Composition Levy
3. Notifying Provisions related to Appointment of Officers
4. Notifying Provisions related to Registration


144
145
146
147

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Discussion on Agenda Items
Agenda Item 1: Confirmation of the Minutes of the 14th GST Council Meeting held on 18-19 May
2017
Draft Minutes of the 14th GST Council Meeting held on 18 and 19 May 2017
The fourteenth meeting of the GST Council (hereinafter referred to as ‘the Council’) was held on 18 and
19 May 2017 in Sher-i-Kashmir International Conference Centre (SKICC), Srinagar under the
Chairpersonship of the Hon’ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon’ble Members
of the Council who attended the meeting is at Annexure 1. The list of officers of the Centre, the States, the
GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure
2.
2. The following agenda items were listed for discussion in the 14th Meeting of the Council –
1. Confirmation of the Minutes of the 13th GST Council Meeting held on 31 March 2017
2. Rate of interest for delayed payment of tax by the taxpayer and delayed refund by the Government
to the taxpayer
3. Finalization of the rate of tax to be collected at source under Section 52 of the CGST Act, 2017
and Section 20 of the IGST Act, 2017
4. Notification of the Common Goods and Services Electronic Portal for facilitating various
taxpayer operations under Section 146 of the CGST Act, 2017
5. Constitution of Project Management Team, Standing Committees and Sectoral Working Groups
for smooth roll-out of GST
6. Nomination of Additional Secretary, GST Council to the Board of GSTN
7. Approval of mechanism to split the MDR (Merchant Discount Rate) charges between the Centre
and the States
8. Approval of amendments to the following Draft GST Rules and related Forms:
i. Registration
ii. Return
iii. Payment
iv. Refund
v. Invoice, Debit/Credit Note
vi. Input Tax Credit
vii. Valuation
viii. Transitional Provisions
ix. Composition

9. Approval of the Fitment of goods and services into the various rate slabs
10. Any other agenda item with the permission of the Chairperson
11. Date of the next meeting of the GST Council
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3.1. The Hon’ble Chairperson welcomed all the Members to the Council Meeting. He conveyed the sad
news that Shri Anil Madhav Dave, the Union Minister for Environment had passed away on 18 May, 2017.
The Hon’ble Members of the Council observed one-minute silence in memory of the departed soul.
3.2. At the start of the proceedings, the Hon’ble Chairperson placed on record his profuse thanks to Dr.
Haseeb A. Drabu, the Hon’ble Finance Minister of Jammu & Kashmir and all his colleagues for the
outstanding arrangements for the Meeting. He observed that this had set at rest any lurking doubts regarding
the environment in the State and the feasibility of holding the Council meeting in Srinagar. He added that
all participants were surprised and happy to find normalcy in Srinagar. The Hon’ble Minister from Jammu
& Kashmir thanked the Council for accepting their invitation to host the 14th Council Meeting in Srinagar.
The Chairperson then commenced discussion on the Agenda items.
Discussion on Agenda Items
Agenda Item 1: Confirmation of the Minutes of the 13th GST Council Meeting held on 18-19 May,
2017:
4. The Hon’ble Chairperson invited comments of the Members on the draft Minutes of the 13th Meeting of
the Council (hereinafter referred to as ‘Minutes’) held on 31 March 2017 before its confirmation.
4.1. The Hon’ble Minister from Uttarakhand observed that in paragraph 12 of the Minutes, it was recorded
that during the 2nd meeting of the Council held on 30 September, 2016, it was decided that only 58% of the
total CGST amount shall be reimbursed to the eligible industry in the States where area-based Central
Excise exemption was in force. He raised a question as to what would happen to the remaining 42% of the
reimbursement. The Hon’ble Minister from Assam observed that the Central Government had been
exempting the entire Central Excise duty despite the fact that 32% of the total Central Excise collection
was being devolved to the States. He added that since devolution of Central taxes in the divisible pool to
the States had been enhanced to 42%, the liability of States to reimburse the Central Goods and Services
Tax (CGST) collected in the GST regime should at best be limited to 10%. The Secretary to the Council
(hereinafter referred to as the Secretary) recalled that in the 2nd meeting of the Council, it was decided that
if the Central Government continued with the present area-based exemption scheme, it shall reimburse only
58% of the total CGST collected from the eligible industries due to the fact that only 58% of the CGST
revenue shall remain in the Consolidated Fund of India and that the remaining 42% shall be devolved to
the States. He stated that if any Value Added Tax (VAT) exemption was given to such units, the State
concerned could reimburse this tax amount collected as State Goods and Services Tax (SGST). The Hon’ble
Minister from Assam stated that earlier, despite devolution, the Central Government gave hundred per cent
exemption. The Hon’ble Chairperson stated that the situation was different as presently the units enjoyed
hundred per cent tax exemption but in the GST regime, the units under the area-based exemption would
pay tax and since the Central Government could retain only 58% of the CGST collected, it would reimburse
only this amount to the eligible units.
4.2 The Hon’ble Minister from Uttarakhand stated that his State could not give reimbursement of the
remaining 42% of the CGST as GST was a destination based tax and they would not be able to retain any
tax for the goods manufactured in their State but supplied outside the State. He recalled that under the
Industrial Policy of 2010, industries in his State had been assured exemption from Central Excise till 2020.
The Secretary stated that the exemption had been given under the old taxation regime and the Government
was not obliged to continue with the same in the GST regime. He added that presently, the discussion was
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limited to the Minutes of the last Council meeting and enquired whether the version of the Hon’ble Minister
from Uttarakhand recorded therein required any modification. The Hon’ble Minister from Uttarakhand did
not propose any modification to his version recorded in the Minutes.
5. In view of the above discussion, for Agenda item 1, the Council decided to adopt the Minutes of the 13th
Meeting of the Council without any changes.

Agenda Item 2: Rate of interest for delayed payment of tax by the taxpayer and delayed refund by
the Government to the taxpayer:

6. Introducing this Agenda item, the Secretary stated that Section 50(1) and Section 50(3) of the CGST Act
and the SGST Acts provided for an upper ceiling of rate of interest of 18% and 24% respectively to be paid
by the taxpayer in specified circumstances. He further stated that Section 56 of the CGST Act and the SGST
Acts provided for an upper ceiling of interest rate of 6% and 9% to be paid by the Government to the
taxpayer in specified circumstances. He added that Section 54(12) of the CGST Act and the SGST Acts
provided for an upper ceiling of interest rate of 6% to be paid by the Government where refund was withheld
by the Commissioner on the ground that the refund order was under appeal or that any other proceeding
was pending against the appellant. He further added that the similar rates of interest would apply under the
Integrated Goods and Services Tax (IGST) Act for similar circumstances in view of Section 20 of the said
Act. He drew attention to para 14 of the Agenda note and the Addendum in respect of this Agenda item
under which certain rates had been proposed for consideration of the Council. He stated that these proposed
rates of interest were discussed during the meeting of the officers of the States and the Centre held in
Srinagar on 17 May, 2017 and the officers suggested that the rate of interest should be simple interest per
annum and should be the same as the prescribed upper ceiling of interest rates under Sections 50(1) (18%),
50(3) (24%), 54(12) (6%), and 56 (6% for the main Section and 9% for the proviso to Section 56) of the
CGST Act and the SGST Acts and the same would be made applicable under the IGST Act under
corresponding circumstances. He suggested that the Council could agree to this suggestion and approve
rates of simple interest per annum at the upper prescribed ceilings under the various Sections. The Council
agreed to this suggestion.
7. For agenda item 2, the Council approved the following rates of simple interest per annum for the delayed
payment of tax by the taxpayer and the delayed refund by the Government to the taxpayer: -
Sl.
No.
Section
Rate of Simple Interest per
annum approved by the Council
1
Section 50 (1) of the CGST Act/ SGST
Acts and under corresponding
circumstances in the IGST Act (Section
20)
18%
2
Section 50 (3) of the CGST Act and the
SGST Acts and under corresponding
circumstances in the IGST Act (Section
20)
24%
3
Section 54(12) of the CGST Act and the
SGST Acts and under corresponding
circumstances in the IGST Act (Section
20)
6%
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4
Section 56 of the CGST Act and the
SGST Acts and under corresponding
circumstances in the IGST Act (Section
20)
6%
5
Proviso to Section 56 of the CGST Act
and the SGST Acts and under
corresponding circumstances in the IGST
Act (Section 20)
9%


Agenda Item 3: Finalization of the rate of tax to be collected at source under Section 52 of the CGST
Act, 2017 and Section 20 of the IGST Act, 2017:

8.1. Introducing this agenda item, the Secretary stated that in terms of the provisions of Section 52 of the
CGST Act and SGST Acts and Section 20 of the IGST Act, an electronic commerce operator (e-operator)
was obliged to collect the tax at source (TCS) at a rate not exceeding 1% and 2% respectively on the
aggregate value of taxable supplies made through him by other suppliers and to pay the same to the
Government by the 10th of the following month of the collection. He stated that this provision was
essentially meant to create an audit trail for a supplier who made supplies through the electronic platform
of others. He stated that this agenda item was discussed during the meeting of officers of the States and the
Centre held in Srinagar on 17 May, 2017 and that there was a broad agreement that the rate of TCS under
Section 52(1) of the CGST Act and the SGST Acts could be 0.5% under each Act and 1% under the second
proviso to Section 20 of the IGST Act. He suggested that the Council might approve these rates of TCS.
The Council approved this suggestion.
8.2. For agenda item 3, the Council approved the following rates for Tax Collection at Source (TCS) by
Electronic Commerce Operators (e-operators):
Sl.
No.
Section Rate of TCS approved
by the Council
1 Section 52 (1) of the CGST
Act and the SGST Acts
0.5% under each Act
2 Second proviso to Section 20
of the IGST Act
1.0%

Agenda Item 4: Notification of the Common Goods and Services Electronic Portal for facilitating
various taxpayer operations under Section 146 of the CGST Act, 2017:

9.1. Introducing this agenda item, the Secretary stated that in the GST regime, the GST Act and Rules
would be common in all States and the Centre and that it was envisaged that certain front end processes of
the taxpayers, namely, registration, furnishing of return and payment of tax would be done on a Common
Goods and Services Tax Electronic Portal for the Central Goods and Services Tax (CGST) Act, Integrated
Goods and Services Tax (IGST) Act, the State Goods and Services Tax (SGST) Act and the Union Territory
Goods and Services Tax (UTGST) Act. He stated that Section 146 of the CGST and the SGST Acts
provided that “The Government may, on the recommendations of the Council, notify the Common Goods
and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns,
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computation and settlement of integrated tax, electronic way bill and for carrying out such other functions
and for such purposes as may be prescribed.”

9.2. The Secretary proposed that the Council might approve to issue a notification to the effect that
www.gst.gov.in shall be the Common Goods and Services Tax Electronic Portal specified under Section
146 of the CGST (which would also be applicable to the IGST Act by virtue of Section 20 of the IGST Act)
and the SGST Acts, and Section 21 of the UTGST Act and that this website was being managed by the
Goods and Services Tax Network on behalf of the Government. The Council approved this proposal.

9.3. For agenda item 4, the Council approved the proposal to issue a notification that www.gst.gov.in shall
be the Common Goods and Services Tax Electronic Portal specified under Section 146 of the CGST and
the SGST Acts and Section 21 of the UTGST Act, which is being managed by the Goods and Services Tax
Network on behalf of the Government.

Agenda item No.5: Constitution of Project Management Team, Standing Committees and Sectoral
Working Groups for smooth roll-out of GST:

10.1. Introducing this agenda item, the Secretary stated that till now two Committees of officers of the
Centre and the States was involved in the GST related work. The first was the Law Committee which
prepared the draft GST Laws and Rules and the second was the Fitment Committee, which was involved
in recommending the GST rates on goods and services. He stated that these two Committees needed to be
continued and in addition, more Committees consisting of officers from the Centre and the States would
need to be formed to enable a smooth
roll out of GST. A 3-tier structure was proposed for Project Management of GST. At the top of the proposed
structure, there shall be the office of the Revenue Secretary, being responsible for successful roll-out of the
GST. At the next level would be the Project Management Team (PMT) comprising officers from the Centre,
States and the GST Council. GST Council Secretariat shall act as the project management office of the
project GST. It was proposed to create eight Standing Committees to look after various aspects of the
project. Each Committee shall have two Convenors, one each from the Centre and State. Each Committee
would be expected to identify steps to be taken in their area of responsibility and to provide a blue-print for
step wise action to be undertaken with target dates. This would lead to uniformity and clarity regarding
actions to be taken by the respective revenue administrations and the expected time-lines for the same. The
Convenors of the Committee shall be the Nodal officers to give inputs to the Project Management Team on
issues relating to their area of responsibility. The decisions could be taken by the individual Standing
Committees to the extent possible, and where necessary, at the level of the PMT. PMT might place issues
of importance before the Revenue Secretary or GST Council for decision, where necessary.
10.2. He stated that the following eight Standing Committees were proposed to be constituted with
defined areas of responsibility:-
(i) Law and Rules Committee
(ii) IT Committee
(iii) Single Interface Committee
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(iv) Fitment Committee
(v) Publicity and Outreach Committee
(vi) Capacity Building and Facilitation Committee
(vii) Fund Settlement Committee
(viii) Guidance Notes Committee
10.3. He stated that broadly the area of responsibilities of the proposed Committees would be as follows:
(a) Law Committee
(i) Finalizing all the Rules
(ii) Drafting of all Non-Tariff (NT) notifications
(iii) Trouble shooting and simplifying business process design
(iv) Examining all representations of trade on Legal issues

(b) Information Technology Committee
(i) Monitoring IT preparedness of GSTN
(i) Monitoring IT preparedness of Centre and States
(ii) Monitoring linkages between various networks
(c) Single interface Committee
(i) Coordinating migration and verification of past credit
(ii) Rules for single interface including in the IGST in coordination with Law Committee
(iii) State-wise coordination teams for assigning taxpayers
(iv) Any other administrative issue needing resolution at the State level
(d) Fitment Committee
(i) Recommending rates of taxes on all commodities and services
(ii) Recommending interest rates under various Sections and Rules
(iii) Recommending Composition rates
(iv) Recommending any other rate provided in Act or Rules
(v) Examining all representations of trade on rate and other issues
(e) Publicity and Outreach Committee
(i) Publicity in print, electronic and social media
(ii) Outreaching taxpayers
(iii) Circulating publicity material for uniformity of messaging
(iv) Publicity in vernacular media particularly on issues such as cascading of taxes, benefits of GST,
anti-profiteering etc.
(f) Capacity Building and Facilitation Committee
(i) Capacity building of officers
(ii) Capacity building of trade
(iii) Preparing material for field offices to act as Facilitation Centres
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(g) Fund Settlement Committee:
(i) All issues relating to revenue subsumed and compensation post GST rollout
(ii) CST Compensation, if any
(iii) IGST fund settlement
(iv) Any legal issue relating to any of the above
(h) Guidance Notes Committee:
(i) To prepare guidance notes on important Legal provisions
(ii) To prepare guidance notes on important sectors of the economy
10.4. He further stated that in view of a large number of representations being received from different
sectors of the economy, there was a need to constitute Sectoral Groups, consisting of a team of officers
from the Centre and the States to examine the issues raised by the stakeholders of such sectors. He stated
that recommendations of these teams shall be submitted to the PMT for further necessary action on them.
He stated that for some of these sectors, Guidance Notes might also be required to be issued, including in
regional languages. He stated that the Sectoral Groups could be constituted for the following sectors: -
(i) Banking, Financial and Insurance Sector
(ii) Telecommunication
(iii) Exports including EOUs and SEZs
(iv) IT/ITES
(v) Transport and Logistics
(vi) Textiles
(vii) MSMEs, including job work
(viii) Oil and Gas (upstream and downstream)
(ix) Gems and Jewellery
(x) Services received and provided by the Government
(xi) Food Processing Sector
(xii) E-commerce
(xiii) Big Infrastructure (Airport, Sea port- including MRO)
(xiv) Travel and Tourism
(xv) Handicrafts (Exports)
(xvi) Media and Entertainment
(xvii) Drugs and Pharmaceuticals
10.5. The Secretary further informed that in the agenda note circulated by the Council for this agenda item,
17 sectors were identified for sectoral analysis and that during the meeting of the officers of the Centre and
the States held on 17 May, 2017 in Srinagar, Secretary Finance (Revenue), Government of Rajasthan had
suggested inclusion of an additional sector, namely Mining. He suggested that the Council might approve
the same. The Council approved the proposal. He further stated that during the meeting of the officers, Joint
Commissioner, Commercial Taxes, Government of Sikkim had suggested to add another sector, namely
Hydro projects, but after discussion, it was felt that this could be covered under the sector relating to ‘Big
Infrastructure’. The Hon’ble Minister from Haryana suggested to add Housing Construction as an additional
sector. The Secretary observed that this could also be covered under the sector ‘Big Infrastructure’. The
Council agreed to this suggestion.
10.6. The Secretary informed that the States had been requested to send nominations for the Project
Management Team, Committees and Sectoral Working Groups but only few nominations had been received
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and that many nominations were not at sufficiently senior level. He stated that during the meeting of the
officers of the Centre and the States held on 17 May, 2017 in Srinagar, it was suggested that there should
be one member from each of the four zones of the country and that in this view, there should be four
members from the States in the PMT. The Council agreed to this suggestion. As regards the constitution of
the various Committees, the Secretary informed that on the suggestions received, the Council had
tentatively constituted the Committees. He stated that while the Convenors of the Committees had been
identified, the States could give names for inclusion as members in various Committees. He further
observed that these Committees would be vested more with responsibility rather than authority and that
decisions would lie with the Council. He stated that the PMT could take quick decisions on the basis of
recommendations of the relevant Committee and that these Committees would need to meet very often. He
stated that each Committee would have one Convenor from the State and another from the Centre. On a
query from the Hon’ble Deputy Chief Minister of Delhi regarding the legal status of these Committees, the
Secretary stated that this entire scheme was in the nature of an administrative arrangement and was not part
of the law. He proposed that the Council might approve the proposal for creation of the three-tier
coordination mechanism for implementation of GST and to further authorize the Chairperson, GST Council
to constitute the Project Management Team, Standing Committees and Sectoral Working Groups. The
Council approved this proposal.
10.7. Some States expressed an interest to be put in certain Committees, as for example, the Hon’ble
Minister from Punjab requested representation of his State in the Textile Committee and the Hon’ble
Minister from Uttarakhand requested representation of his State in the Travel and Tourism Committee. The
Hon’ble Chairperson stated that all States desirous of becoming members of various Committees should
give the name of the officers in writing to the Council. The Hon’ble Minister from Kerala stated that the
decisions of the PMT should be circulated to the Council. The Council agreed to this suggestion.
10.8. For agenda item 5, the Council approved the following:
(i) A 3-tier structure for Project Management of GST consisting of the office of the Revenue Secretary, a
Project Management Team called GST Implementation Committee (4 officers from States, 4 from the
Centre and 1 from GST Council) and eight Standing Committees. In addition, there shall be 18 Sector
Groups (including one on Mining Sector).
(ii) To authorize the Chairperson, GST Council, to constitute the GST Implementation Committee and other
Standing Committees and the Sectoral Working Groups after incorporating further nominations received
from the States and carry out changes in scope and nomenclature of Committees/Groups, wherever
required.
(iii) To include Power Sector and Housing/Construction in the ‘Big Infrastructure’ Sectoral Group.
(iv) Decisions of the GST Implementation Committee shall be circulated to the Council.




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Agenda Item 6: Nomination of Additional Secretary, GST Council to the Board of Goods and
Services Tax Network (GSTN):

11.1. Introducing this agenda item, the Secretary informed that a position of Director on the GSTN Board
of Directors had been vacated upon demission of office of Member Secretary, Empowered Committee of
State Finance Ministers (EC) by Shri Satish Chandra, who ceased to be a Director with effect from 31st
March, 2017. He further stated that after the passage of the 101st Constitutional Amendment Act, GST
Council was the Federal Constitutional Body spearheading the policy initiatives relating to GST roll-out in
the Country, including the passage of the GST Acts and Rules. He stated that GSTN shall be asked to amend
its Articles of Association (AoA) to the effect that all references to the Empowered Committee of State
Finance Ministers may, post amendment, refer to GST Council. He further added that in place of “Ex-
officio Member Secretary, EC”, Clause 48 should read as “Ex-officio Additional Secretary, GST Council”.
He stated that in view of this, it was proposed that Additional Secretary, GST Council may be nominated
as Ex-Officio Director on the Board of GSTN to replace Shri Satish Chandra. The Council approved the
proposal.
11.2. For agenda item 6, the Council approved the nomination of Additional Secretary, GST Council as
ex-officio Director on the Board of GSTN in place of the erstwhile Member Secretary, Empowered
Committee of State Finance Ministers (EC).

Agenda Item 7: Approval of mechanism to split the Merchant Discount Rate (MDR) charges between
the Centre and the States:
12.1. Introducing this agenda item, the Secretary stated that to incentivize the use of digital economy, the
Government of India had decided to bear the applicable Merchant Discount Rate (MDR) charges of
payment of Government dues (taxes, non-taxes and other payments) up to Rs.1 Lakh made by Indian
citizens using debit cards (under the Office Memoranda dated 14.12.2016 and 15.12.2016 issued by the
office of the Controller General of Accounts, Department of Expenditure, Ministry of Finance). He further
stated that under the GST regime, it had been provided that taxpayers would be able to make payments of
CGST, SGST, IGST and the GST compensation cess by a single transaction, through a single challan. He
stated that a decision needed to be taken as to the sharing of MDR charges for GST payments up to Rs.1
Lakh using debit cards, between the States and the Centre. He explained that splitting of charges between
the States and the Centre based on the amount of CGST, IGST or SGST collected using a single challan
might not be the most appropriate option, as a large amount of IGST which was a single levy, would also
ultimately accrue to the States due to cross-utilization of credit. He stated that similarly, SGST collected by
States would also be used for payment of IGST due to cross-utilization. He expressed that a cleaner way of
sharing of MDR charges between the Government of India and the States might be to split these charges,
in proportion of the final GST revenues accruing to the States and the Centre after cross-utilization and
apportionment processes are finalized.
12.2. The Secretary informed that this agenda item was discussed during the meeting of the officers in
Srinagar on 17 May, 2017 and some States like Haryana, Assam, Rajasthan and Odisha had not favoured
putting additional financial burden on the State Governments. He further stated that some States desired to
know the likely financial burden on the State Governments if the MDR charges for payment of GST by
debit card up to Rs.1 lakh was to be borne by the State Governments and the Central Government. He also
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informed that Uttar Pradesh had suggested that the Central Government could bear the entire charge for the
first two years and then the States could take a call whether to bear this charge. The Hon’ble Minister from
Andhra Pradesh stated that after demonetisation, the Central Government had been giving incentives to
make payments by credit and debit cards and the State Governments should not be given this burden. The
Hon’ble Deputy Chief Minister of Delhi expressed that as Government of India had been bearing this
expense, it should continue to do so. The Hon’ble Minister from Assam pointed out that this facility was
being extended only for payments up to Rs.1 lakh by debit cards. The Hon’ble Chief Minister of Puducherry
stated that the burden on the State Governments should be worked out before taking a decision on this
agenda item. The Hon’ble Chairperson suggested that in view of the reservations expressed by the States,
this agenda item could be deferred for the time being and after ascertaining the likely financial implication
of this decision, a fresh agenda item could be introduced on a later date. The Council agreed to this
suggestion.

12.3. For agenda item 7, the Council approved to defer the agenda item for consideration and to consider
it on a later date after ascertaining the likely financial implications of this proposal.
Agenda item 8: Approval of amendments to the following Draft GST Rules and related Forms: (i)
Registration; (ii) Return; (iii) Payment; (iv) Refund; (v) Invoice, Debit/Credit Note; (vi) Input Tax
Credit; (vii) Valuation; (viii) Transitional Provisions; and (ix) Composition:
13.1. Introducing this agenda item, the Secretary recalled that the Council had approved nine GST Rules
during its 13th Meeting held on 31 March, 2017 and that these were put in the public domain and sent to the
States. He informed that before the 14th Council meeting, the Law Committee could finalise seven GST
Rules and the connected Forms, which were circulated as Volume-2A and Volume-2B of the Agenda Note
respectively. He informed that the GST Rules on Return and Transitional Provisions were yet to be finalised
by the Law Committee and that it was expected to finalise these Rules in the next seven to eight days. He
further stated that based on the inputs received from stakeholders, some changes had been made in the
Rules relating to Registration; Payment; Refund; Invoice; Input Tax Credit (ITC); Valuation and
Composition and that a presentation highlighting the important changes to the draft Rules was shared with
the States before the 14th Council Meeting (attached as Annexure 3 to the Minutes). He further stated that
the draft Rules were discussed during the meeting of the officers of the Centre and the States on 17 May,
2017 in Srinagar and during discussion, the following three changes were agreed to be made in the Rules
relating to Registration, Composition and ITC: -
(i) The word “ninety days” to be replaced by “thirty days” in Rule 9(3) of Registration rules to bring
it in consonance with FORM REG RULE 12.
(ii) The word “Registration.16” may be replaced with “Registration.17” in Rule 1 of Composition
Rules.
(iii) Under Rule 7(1)(i) of the ITC Rules, {‘F’ is the total turnover of the registered person during the
tax period”} may be replaced with {‘F’ is the total turnover in the State of the registered person
during the tax period”} to bring in more clarity.
13.2. Starting the discussion on this agenda item, the Hon’ble Minister from Uttarakhand stated that Rule
4 of the Registration Rules provided for separate registration for multiple business verticals within a State
and enquired as to what treatment would be given to a trader who sold various items like cloth, sanitary
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ware, hosiery, etc. when his combined turnover exceeded Rs.20 lakh. The Secretary stated that the trader
would be required to take only one registration and that if he was only making supplies to consumers (B2C),
he would not be required to file invoice-wise details. He stated that majority of the dealers would need to
file a very simple return as their supplies would only be B2C. The Hon’ble Minister from Kerala raised a
question regarding the manner of invoice matching for B2B supplies, i.e. whether item-wise or on the total.
Shri Prakash Kumar, Chief Executive Officer (CEO), GSTN, clarified that earlier the design was to do the
matching line item-wise but now it was decided that matching would be done on total value and that if more
details were required line item-wise, the same would be available on the System. Shri J. Syamala Rao,
CCT, Andhra Pradesh, stated that if commodity-wise invoice matching was not done, it would be difficult
to track supply from the manufacturer in the retail chain. Shri Upender Gupta, Commissioner (GST Policy
Wing), CBEC, stated that HSN was not being captured at the invoice level and that only a summary of HSN
Code was being taken in the return. He further suggested that this could be discussed in greater detail when
GST Rules on Return were taken up for discussion. The Hon’ble Minister from Kerala requested to circulate
a note on the scheme of matching of returns under GST. The Hon’ble Minister from Kerala raised another
issue as to what mechanism was there to ensure that a vehicle transporting taxable goods inter-State was
carrying invoice. Commissioner (GST Policy Wing), CBEC, stated that a separate e-way bill Rules would
address this issue and that when goods were handed over to the transporter, an e-way bill would be
generated. He informed that several comments had been received on the draft e-way bill Rules and after
examining them, the Rules on e-way bill would be brought before the Council. The CEO, GSTN, added
that where a transport vehicle carried multiple invoice for multiple people, a unique code would be
generated and this could be checked anywhere on the way. He added that this code could also be accessed
on mobile phone and the e-way bill would give details regarding the goods being carried in a transport
vehicle. The Hon’ble Deputy Chief Minister of Delhi emphasised that data should be accessible to the team
of surveillance officers.
13.3. The Hon’ble Minister from Uttarakhand raised an issue that if an industry in Uttarakhand set up in
2010 and undertook an expansion of the same in 2017 and got the benefit of tax exemption for both and
then set up a new unit under GST regime, then how his tax liability would be calculated. The Secretary
explained that under GST regime, there would be one registration for all businesses operating under a
common PAN (Permanent Account Number) in a State and that they would all pay GST. He added that in
certain circumstances, different business verticals could have different GSTIN numbers, within the same
company. The Hon’ble Minister from Uttarakhand raised another issue that a manufacturer of tractor would
use different mechanical and electrical parts falling under different HSN (Harmonised System of
Nomenclature) Code and how the manufacturer of tractor would declare the same. Dr. P.D. Vaghela,
Commissioner of Commercial Tax (CCT), Gujarat, clarified that inputs would be accounted separately and
ITC would be available on such inputs and the final product (tractor) would be declared separately under a
different HSN Code. The Hon’ble Minister from Uttarakhand also raised the issue of difficulties that job
workers for jewellery would face in declaring the HSN Code. The Secretary stated that this issue could be
discussed when fitment rate for gold was discussed which was not in the agenda item for this Meeting.
13.4. Shri Somesh Kumar, Principal Secretary (Revenue), Telangana, raised a few questions relating to the
Registration Rules. First, he pointed out that in Rule 9 of the Registration Rules (dealing with suo moto
registration), it was provided that every person to whom a temporary registration had been granted shall
submit an application for registration within 90 days and enquired as to what would be the legal effect if
no such application for registration was filed. Second, he raised the question that Rule 11 provided for
display of the Certificate of Registration and enquired as to what would be the legal effect if the Certificate
of Registration was not displayed. The third issue raised by him was the desirability of a provision in Rule
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13 wherein it was provided that in some cases registration could not be cancelled for a period of one year
from the effective date of registration. The fourth issue raised by him was in respect of the process of
physical verification provided under Rule 18. The Commissioner (GST Policy Wing), CBEC, clarified
these issues. On the first question, he stated that this would be an enforcement issue and would be dealt
accordingly. On the second question, he stated that if the Registration Certificate was not displayed, the
Section in GST Law relating to general penalty would apply. On the third question, he stated that the
requirement of one-year validity period of a registration was kept only for those taxable persons who had
taken registration voluntarily though they were within the exemption threshold. On the fourth question, he
clarified that physical verification of a registered premises after the grant of registration would be done only
in exceptional cases which would be decided by the computer on the basis of risk parameters.
13.5. The Hon’ble Minister from Meghalaya observed that in Rule 1(e) of the Tax Invoice Rules, the
requirement of recording the name and address of the recipient was only for those transactions where the
value of taxable supply was Rs. 50,000 or more and suggested that this value limit should be lowered. The
Secretary stated that this issue was discussed earlier during the 13th Council Meeting (held on 31 March,
2017) and it was explained that any reduction in the monetary limit from Rs. 50,000 to Rs. 20,000 for
recording the address of the purchaser in the B2C transaction could not be done for a particular State but
on an all-India basis. He added that most of the other States did not favour applying this lower threshold at
the all-India level as they felt that this would considerably increase the compliance burden on the tax payers
as well as the buyers. He suggested that there could be other ways of addressing this issue like setting up
good quality outlets for high value consumer products in the smaller States of the North East, educating the
customers to have their address recorded in the invoice when buying from outside the State even for
purchases lesser than Rs. 50,000 and the possibility of recognizing the right of non-tribal traders to set up
retail stores.
13.6. The Hon’ble Deputy Chief Minister of Manipur stated that the cost of goods in the North-Eastern
States was high due to high transportation cost and lack of developed roadways and this prompted the
persons from the North-Eastern States to buy goods from Silchar or Guwahati. He stated that an exception
should be made in the Rules regarding the monetary limit for recording the address of the purchasers in
B2C transactions. The Secretary stated that the issue did not relate to the North-Eastern States but to its
neighbouring States where such an exception in the relevant Tax Invoice Rules would need to be made.
The Hon’ble Minister from Meghalaya stated that the threshold for recording address of the purchaser on
the invoice should be reduced from Rs. 50,000 as otherwise smaller States like Meghalaya would lose
revenue. The Hon’ble Minister from Bihar stated that different States had different issues and all could not
be addressed in the GST Law. He observed that people from Bihar bought blankets from outside the State
and Bihar would not get any tax from this transaction if invoice did not have the address of the purchaser
on record. The Hon’ble Minister from Meghalaya stated that the Special Category States needed to be
treated differently. The Hon’ble Minister from Uttarakhand supported the proposal to reduce the monetary
ceiling for the Special Category States. The Hon’ble Minister from Himachal Pradesh stated that the Rule
should provide that if a consumer from a Special Category State bought any goods outside his State, the
monetary limit of the transaction for recording the address on record shall be Rs. 25,000. The Secretary
observed that this would considerably increase the compliance burden and pointed out that the States had
already been assured 14% growth rate for compensation. The Hon’ble Chairperson stated that North-
Eastern States were consuming States and compensation formula based on 14% assured growth rate was a
very liberal arrangement and therefore, the existing provision could be allowed to operate and its impact
could be evaluated in due course.
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13.7. The Hon’ble Minister from Meghalaya reiterated that for Special Category States, implementation of
this provision in its current form would lead to loss of revenue. The Commissioner (GST Policy Wing),
CBEC, stated that a special provision in respect of this Rule would be required in the neighbouring States
like West Bengal. The Hon’ble Deputy Chief Minister of Gujarat stated that North-Eastern States were
good tourist destinations and they would also get revenue for purchases below Rs. 50,000 by tourists from
outside the State. The Hon’ble Minister from Kerala enquired whether a consumer could insist on writing
his address on an invoice of value below Rs. 50,000. The Hon’ble Minister from Meghalaya suggested that
this requirement should be made compulsory in the Invoice Rules. The Hon’ble Deputy Chief Minister of
Arunachal Pradesh suggested that there should be a provision in the Invoice Rules that the address of the
buyer would be recorded in an invoice where the buyer insisted on it. The Secretary suggested that a
provision to this effect could be made in the Tax Invoice Rules. The Council agreed to this suggestion. The
Council approved the other Rules.

14. For agenda item 8, the Council approved the GST Rules and the related Forms on (i) Registration; (ii)
Payment; (iii) Refund; (iv) Invoice, Debit/Credit Note; (v) Input Tax Credit; (vi) Valuation; and (vii)
Composition with the following amendments:
(i) The word “ninety days” to be replaced by “thirty days” in Rule 9(3) of the Registration Rules to bring
it in consonance with FORM REG RULE 12;
(ii) The word “Registration.16” to be replaced with “Registration.17” in Rule 1 of the Composition Rules;
(iii)Under Rule 7(1)(i) of the ITC Rules, to replace the expression “{‘F’ is the total turnover of the registered
person during the tax period}” with the expression “{‘F’ is the total turnover in the State of the
registered person during the tax period}”;
(iv) To insert a provision in the Invoice Rules that the address of the buyer shall be recorded in an invoice
where the buyer insists on it.

Agenda Item 9: Approval of the Fitment of goods and services into the various rate slabs:

15.1. Introducing this agenda item, the Secretary stated that in the 4th Council Meeting (held on
3-4 November, 2016), the Council had laid down a set of guiding principles in respect of bands of rates of
GST and GST Compensation mechanism and that officers of the Fitment Committee consisting of the
Central Government and ten State Governments met three times (for a total of six days) and finalised its
recommendations on rates on the basis of these guiding principles. He stated that the Committee had
recommended the rates after taking into account the present tax incidence on account of Central Excise,
Service Tax and VAT (including cascading on account of these taxes) as well as embedded taxes and the
incidence of CST, Octroi, Entry Tax, etc. He added that in certain cases, the Committee had recommended
lower/higher GST rates, vis-à-vis the present tax incidence (including embedded taxes) taking into
consideration: (a) the current economic and social realities; (b) ensuring moderate tax incidence on items
of common use; and (c) ensuring moderate GST rates for intermediates and capital goods.
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15.2. He stated that as regards the rates of Compensation Cess, the Committee was largely guided by the
present tax incidence with some cushion on goods which presently bore a total tax incidence of more than
28%, including that on mid-segment and large, hybrid luxury cars. He stated that the Committee did not go
into details of GST rates for gold, diamond and gems and jewellery sector, keeping in view that the rate of
tax for this sector was to be decided by the Council after the completion of the fitment exercise. He further
stated that the Committee also examined the existing exemptions relating to Additional duty of Customs
(also called CVD) and Special Additional Duty (SAD) of Customs, so as to cull out the cases, where the
Committee recommended continuation of exemptions in the form of IGST exemptions. These cases
included Multilateral/Bilateral Commitments [including exemption for goods in transit to the land locked
Countries], re-import or re-export cases and passenger facilitation at international Airports.

15.3. He further stated that in the case of services, the Committee largely followed the following principles
while recommending the GST rate structure: (a) continuance of exemption for certain services, so as to
maintain present tax incidence on services; (b) To suggest broadly the same GST rate for different modes
of transportation services, more or less at the present rates [lower than the general standard rate of 18% for
services] because the inputs for transportation sector such as fuel, etc. were not in GST; (c) Withdrawal of
exemptions in certain cases where such exemptions had been extended because of lack of jurisdiction; (d)
Withdrawal of exemption in certain cases, like Works Contract [a composite supply of service]. The
Committee had recommended withdrawal of present service tax exemptions, keeping in view the fact that
sale of goods in these contracts would now attract GST and it might not be possible to segregate the value
of services from the total value; (e) For ensuring similar GST rates, when similar supplies could be treated
as supply of services or goods [depending on facts of the case] so as to remove tax arbitrage [For example,
transfer of right to use goods is a service under GST law (Schedule II: Entry 5 (f)) whereas the sale of
similar goods is supply of goods]. He further stated that keeping these principles in mind, the Committee
had recommended the goods and services that would fall into different rates, namely, Nil, 5%, 12%, 18%,
28%, as also the Compensation Cess rates and the IGST exemptions.

15.4. The Secretary stated that the five Annexures indicating the GST rates for goods (including the goods
covered under the Addendum to the GST Rate Schedule for Goods, circulated before the Council Meeting)
covered about 1211 items at 4-digit HSN classification (total items at 8-digit being about 11,000) and out
of these, about 88 items were largely in the exempt List (constituting 7% of the total goods at the 4-digit
level), about 173 items were in the 5% List (constituting 14% of the total goods at the 4-digit level), about
200 items were in the 12% List (constituting 17% of the total goods at the 4-digit level), about 521 items
were in the 18% List (constituting 43% of the total goods at the 4-digit level) and about 229 items were in
the 28% List (constituting 19% of the total goods at the 4-digit level). He further stated that about 81% of
items at 4-digit level would largely be taxed at the rate of 18% or lower and only about 19% of items at the
4-digit level would be taxed at the rate of 28%. He further added that about 60% of the items at the 4-digit
level would be covered in the standard rate of 12% and 18% and about 21% items would be taxed at a rate
lower than the standard rate. He also stated that detailed horizontal sheets had been sent to CCTs of every
State indicating the rates of tax for goods at the 4-digit level. He stated that the Annexures I to V of the
agenda notes covered the rates of goods and the Annexures VI to X covered the rates of services. He stated
that services attracting 28% of GST were largely those which were charged to luxury tax and entertainment
tax which would be abolished under the GST regime. He further explained that Annexure XI of the agenda
notes contained cess on four categories of items which included 50 items of tobacco classified as per Central
Excise tariff. He stated that Annexure XII contained the proposal to grandfather IGST exemptions and
Annexure XIII contained those services which were proposed to be taxed at the same rate as the
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corresponding goods. He added that Annexure XIV contained services to be taxed under reverse charge.
He stated that all these tables and the Addendum to the detailed agenda notes of Agenda Item 9 circulated
before the Council Meeting had been discussed during a meeting with the officers of the Centre and the
States held on 17 May, 2017 in Srinagar. He added that based on the suggestions agreed upon during the
officers’ meeting, rates on certain goods/services were proposed to be modified as compared to what was
proposed in the original agenda notes and that a 4-page addendum was circulated suggesting these modified
rates during the meeting today (enclosed as Annexure 4 to the Minutes).

15.5. Starting the discussion on this agenda item, the Hon’ble Minister from Kerala made a general point
that 70% of the VAT revenue came from goods that attracted the VAT rate of 14.5% and that the same
weight of the goods should have been there for 28% tax slab under GST but this weight was only 20%. He
observed that coverage of goods under the exemption list was understandable as it was meant to keep the
Consumer Price Index (CPI) basket low but for intermediate goods, there was a drastic reduction in the
incidence of tax as it was being brought to 18%. He observed that India would move into fiscal
consolidation path in the next two years and with the increasing social responsibility of the Governments,
the revenue deficit should not go up. He stated that this could also have serious impact on the revenues of
the Central Government. He expressed an apprehension that with lowering of rates on intermediates, capital
goods and items of common use, the situation might not remain revenue neutral and requested more details
regarding revenue implications on these goods to better understand the macro picture. The Secretary stated
that it would be very difficult to do an exact projection of revenue. He observed that under Central Excise,
manufacturers were exempt for turnover upto Rs. 1.5 crore and as there would be no such exemption under
GST, more revenue would accrue on this account. He also pointed out that the turnover limit on which VAT
was levied was different in different States. He further stated that there could be additional revenue
collection through better compliance by use of Information Technology (IT), e-way bill system, etc. He
stated that as the present rate structure was loaded against the revenue neutral rate (RNR), one had to be
cautious about lowering the rates on State-specific goods. He added that the Council would also need to
consider how to operationalise the anti-profiteering provisions of the law in order to ensure that Maximum
Retail Price (MRP) was reduced for goods which were required to have the MRP label as otherwise it would
lead to windfall gains to the corporates.

15.6. The Hon’ble Minister from Jammu & Kashmir stated that the choice lay between elasticity and
buoyancy. He suggested that a study could be done to estimate the gains from buoyancy in taxes. He further
stated that the Central Statistical Organisation (CSO) should prepare a new basket for CPI as the present
CPI basket was prepared in 1974 and it needed revision. He observed that inflation impact would be less
under a new CPI basket. Shri Arvind Subramanian, Chief Economic Adviser (CEA), Government of India,
stated that concern of the Hon’ble Minister from Kerala about revenue reduction would be attenuated by
reduction in inflation provided the reduction of GST rates was passed on to the consumers. He further stated
that there would be two sources of revenue gain, namely, an increase in consumption due to reduction in
tax rate and improved compliance. He suggested that the presently proposed GST rates should be adopted
and could be watched for a year or two and if there was a serious shortfall of revenue, a call could be taken
to increase the tax rates. The Hon’ble Chairperson stated that when Constitutional amendment was being
undertaken, there was a concern diametrically opposite to the one expressed by the Hon’ble Minister from
Kerala and that was to keep the GST rates low and to put a cap of 18% in the Constitution itself. He stated
that the whole issue of having a band of tax rates arose from this concern and there was an effort to reduce
the number of goods falling in the band of 28% rate. He further stated that coverage of goods in the 28%
rate band had to take account of the current reality, and some of the goods which were considered luxury
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earlier, were no longer luxury goods, and therefore, kept at 18%. He further stated that the concern regarding
fall in revenue due to lowering of rates were legitimate as every Finance Minister needed to balance his
budget. He stated that how much would be gained from buoyancy was a judgment call to be taken. Further,
there would be additional buoyancy gains due to increased compliance under income tax. He further stated
that the Central Government had to be more watchful about revenue as States were protected for five years
due to the provision of compensation at the assured rate of growth of 14%. The Hon’ble Minister from
Jammu & Kashmir stated that a long-term view to be kept in mind while discussing the rates of GST was
that in the next three to five years, the country should move towards a single rate of GST, and therefore, it
would be desirable to tax most of the goods at the rate of 12% or 18%.

15.7. The Hon’ble Minister from Kerala stated that reducing the rates of tax should be avoided as already
cartelisation had started in sectors like cement where prices had been increased. He suggested that action
should be taken under the anti-profiteering provision of the law. The Hon’ble Chairperson stated that the
officers should suggest ways to operationalise the anti-profiteering provision of the law. The Hon’ble
Minister from Haryana stated that the success of GST would depend upon its acceptability by the public
and in order to assure them, it was important to highlight reduction in rates on certain goods which would
counter the increase in prices of some other goods due to introduction of GST. The Hon’ble Minister from
Goa stated that the anti-profiteering provision of law should be operationalised. The Hon’ble Chairperson
stated that it would be useful to highlight those goods on which tax was being reduced under GST and the
Council and the Governments could do a media campaign to ensure that the tax reduction was passed on to
the consumers.

15.8. The Hon’ble Minister from Uttarakhand stated that the goods that were not taxed under VAT would
be taxed under GST. The Hon’ble Chief Minister of Puducherry stated that the concerns of small States
should be addressed in the GST as they might not be able to carry out substantial additional revenue
mobilisation. He stated that if compensation was paid every two months, it could affect the developmental
activities of the smaller States. The Hon’ble Minister from Tamil Nadu stated that he was happy to see that
the goods which were at present exempt both by the Centre and the States continued to be nil rated under
GST as these were generally goods of common consumption and deserved to be exempted. He further stated
that in general, he had no objection to the proposed fitment of goods and services into various rate slabs
under GST on the basis of the guiding principle laid down during the 4th GST Council Meeting (held on 3-
4 November, 2016). He stated that on certain specific products, he would make suggestions on the basis of
representations from the trade and industry.

Discussion on GST rate for Goods

15.9. Starting the discussion on the proposed rates of GST on goods, the Secretary stated that discussion
would be limited to those goods in each Annexure where an Hon’ble Member wanted the proposed rates to
be revisited. He stated that except for such goods, the proposed rates for the rest of the goods in various
Annexures could be deemed to be approved by the Council. The Hon’ble Chairperson stated that any
suggested modification in rates should be discussed in terms of five criteria, namely, (i) revenue impact;
(ii) impact on domestic manufacturing; (c) the existing combined rate of tax; (iv) the relevance of the
product for consumers; and (v) optical perception of GST. The following goods were mentioned Annexure-
wise by the Hon’ble Members for discussion: -

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Annexure I (List of goods at nil GST rate):

(i) ‘Jari booti’: The Hon’ble Minister from Uttarakhand stated that jari booti was presently kept in
Annexure II (5% List) and that it should be put in the nil rate category as 67% of jari booti came from the
forests of Uttarakhand. The Secretary stated that jari booti was used as herbal medicine, and therefore, it
should be taxed. He stated that the Forest Development Corporation would sell jari booti to companies like
Dabur which would take input tax credit (ITC) and use it for payment of tax on its final products. The
Hon’ble Minister from Uttarakhand stated that there was no VAT on jari booti in his State. The Hon’ble
Minister from Chhattisgarh stated that his State charged 5% VAT on jari booti. The Hon’ble Deputy
Minister of Gujarat stated that in his State, jari booti was collected by tribal people and given to the Forest
Development Corporation which auctioned it and 5% VAT was chargeable on them. After discussion, it
was agreed that jari booti need not be brought under the Nil rate of GST.

(ii) ‘Suji’: The Hon’ble Minister from Uttarakhand stated that when atta, besan and maida were kept at nil
rate, there was no justification to tax suji at 5% and suggested that it should also be brought under the nil
rate. The Secretary stated that there was 5% VAT on suji in every State, except Uttar Pradesh. The Special
Secretary (Finance), Odisha, stated that there was 5% VAT on suji in his State and that it had not created
any adverse impact on the consumers. After discussion, it was agreed to bring suji other than put in unit
container and bearing a registered brand name under Annexure I attracting Nil rate of GST, while suji, put
up in unit container and bearing a registered brand name, to be kept under Annexure II at 5% rate.

(iii) ‘Dalia’: The Hon’ble Minister from Uttarakhand stated that on the same logic as suji, dalia should also
attract nil rate of GST. After discussion, it was agreed that dalia, other than those put up in unit container
and bearing a registered brand name, would attract Nil rate of GST and dalia put up in unit container and
bearing a registered brand would be taxed at the rate of 5%. This was agreed to by the Council.

(iv) Rusk: The Hon’ble Minister from Uttarakhand stated that it was not taxed under VAT, and therefore,
it should be kept at Nil rate. The Secretary stated that rusk was modified bread, and therefore, it was justified
to levy tax at the rate of 5%, as proposed. The Council agreed to this suggestion.

(v) ‘Seviyan’(Vermicelli): The Hon’ble Minister from Uttarakhand suggested that it should attract Nil rate
of GST. The Secretary stated that in most States, it attracted VAT at the rate of 5%, and therefore, it should
not be brought under the Nil rate. The Council agreed to this suggestion.

(vi) ‘Gur’ (Jaggery): The Hon’ble Minister from Uttarakhand suggested that gur should attract Nil rate.
This proposal was supported by the Hon’ble Chief Minister of Puducherry on the ground that this product
came from the tribal belt. The Hon’ble Ministers from Telangana and Uttar Pradesh also supported this
proposal. After discussion, the Council agreed that gur (jaggery) would attract Nil rate of GST instead of
the presently proposed rate of 5%.

(vii) ‘Khandsari’: The Hon’ble Minister from Telangana stated that Khandsari should be taxed at Nil rate
of duty. After discussion, the Council agreed to tax it at the rate of 5% as proposed in the agenda notes.

(viii) Low priced Biscuits: The Hon’ble Minister from Uttarakhand suggested that the low priced biscuits
which were mostly used by the poorer sections of the society should be kept in the exempt List. The
Secretary stated that value based rate of taxation led to suppression of value and loss of revenue. He
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suggested that the rate of tax should not be varied on the basis of value of biscuits. After discussion, the
Council agreed to discuss this issue separately when they took up discussion on the rate of tax for biscuits.

(ix) Silk yarn, cotton yarn in hank: The Hon’ble Minister from Assam suggested that silk yarn should be
kept in the exempted category. The Hon’ble Minister from Karnataka stated that there would be no revenue
implication in exempting silk yarn as silk fabrics would be taxed. The Hon’ble Minister from Uttar Pradesh
suggested that cotton yarn in hank should be kept in the exempt category. The Hon’ble Chairperson
observed that reducing taxes on a large number of products would adversely affect the revenue and that the
Governments needed to strike a balance between revenue generation and populism. The Secretary
suggested that the goods falling in the entire textile chain might be discussed separately. The Council agreed
to discuss this point along with discussion on the entire value chain of textiles.

(x) Sewing thread: The Hon’ble Deputy Chief Minister of Gujarat suggested that the cheaper varieties of
sewing thread should be kept under exempted List. The Secretary suggested that the goods falling in the
entire textile chain might be discussed separately. The Council agreed to this suggestion.

(xi) ‘Zari’: The Hon’ble Minister from Uttar Pradesh suggested to keep zari in the exempt list. The Hon’ble
Deputy Chief Minister of Gujarat stated that zari thread was made in Surat and supplied to Uttar Pradesh.
He stated that making of zari thread provided employment to 3 lakh persons and the poor people worked
on it at home, and therefore, suggested that zari should be kept in the exempt List. The Secretary stated that
embroidery or zari articles was used in high value textile clothing, and therefore, it was reasonable to tax it
at the rate of 5%. He stated that the burden of this tax would be borne by the buyers of these textile articles
and not the persons who produced them. The CEA stated that GST was a consumption tax and its incidence
would be borne by the consumers, and therefore, it was important to see who were the consumers of the
product. The Council agreed not to change the recommended rate for zari at 5%.

(xii) ‘Chikan’: The Hon’ble Minister from Uttar Pradesh suggested that chikan should be kept under the
exempt category. The Secretary stated that though chikan was a local produce, it was largely used by the
rich class and when sari and dhoti were proposed to be taxed at the rate of 5%, it would not go down well
with the people to exempt chikan products. The Hon’ble Minister from Bihar stated that too many
exemptions would lead to problem of misclassification. The Council agreed to this suggestion and not to
provide any special dispensation for chikan.

(xiii) Handloom and handicrafts: The Hon’ble Minister from Jammu & Kashmir suggested that handloom
and handicrafts should be kept in the exempt category. The Hon’ble Ministers from Assam and Meghalaya
supported this proposal. The Hon’ble Minister from Andhra Pradesh stated that such products were
exempted from VAT and imposing GST on them would create problems. The Hon’ble Minister from Goa
supported the proposal to exempt handicrafts. The Hon’ble Minister from Manipur supported the proposal
to exempt handloom as this was supplied by highly unorganised sector. The CEA stated that exemption
from GST to goods which were important in a local area created distortion in the economy and it would be
preferable to find a local solution such as Direct Benefit Transfer (DBT). The Secretary suggested that the
goods falling in the entire textile chain as well as the handicrafts could be discussed separately. The Council
agreed to this suggestion.

(xiv) Fish net and fish net fabric: The Hon’ble Minister from Andhra Pradesh stated that these goods
were used by fishermen, and therefore, should be kept in the exempt category. The Hon’ble Chief Minister
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of Puducherry and the Hon’ble Minister from Goa supported this proposal. The Hon’ble Minister from
Tamil Nadu stated that India had a long coast line and lakhs of fishermen were dependent on fishing for
their livelihood and keeping this in mind, Tamil Nadu had presently exempted fish net from VAT. He stated
that as ITC would be available, fish net could be taxed at 5%. The CEA stated that fish net had a lot of
embedded tax and putting it in exempt category would mean that it would continue to carry the embedded
tax whereas the imported goods would be carrying no embedded tax, making them cheaper. He further
stated that if fish net was charged to Nil rate of GST, no IGST could be charged on imported fish net, which
would adversely affect the ‘Make in India’ campaign. The Hon’ble Minister from Kerala stated that
normally, manufactured products should not be kept under Nil rate of GST. The Hon’ble Minister from
Bihar suggested that the Chairperson could be authorised to finalise the GST rates in consultation with the
Secretary and the officers of the Centre and the States. The Secretary stated that tax on inputs used to make
fish net was at the rate of 18%, and therefore, the rate of GST on fish net and fish net fabric should be kept
at least at 12% as proposed. The Council agreed to this proposal.

(xv) Bamboo matting, screens, basket works and other articles of bamboo: The Hon’ble Minister from
Andhra Pradesh stated that these products should be kept under the exempt List as these were made by
tribal people. The Hon’ble Minister from Meghalaya also supported this proposal and stated that bamboo
products were used in handicrafts. The Hon’ble Deputy Chief Minister of Manipur also suggested to exempt
bamboo matting. The Hon’ble Minister from Tripura suggested that bamboo and bamboo products should
be kept under the exempt category. The Secretary stated that the GST rate for these products falling in
Chapter 46 was discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in
Srinagar and it was agreed at the officers’ level that rather than putting them under exempt category, they
could be taxed at the rate of 12% instead of the earlier recommended rate of 18%. He added that this item
was included in the addendum circulated in the Council on 18 May 2017 after the meeting of the officers
of the Centre and the States in Srinagar (Annexure 4 of the Minutes). The Council approved the revised
proposed rate.

(xvi) Bamboo floor tiles and bamboo panels: Ms. Brahmneet Kaur, CCT, Tripura, stated that bamboo
floor tiles and bamboo panels should also be taxed at Nil rate or at the rate applicable for other bamboo
products. The Secretary pointed out that these products were mostly used by rich people in bungalows.
After discussion, the Council agreed that these products should be taxed at the originally recommended rate
of 18%.

(xvii) Sugar: The Hon’ble Minister from Andhra Pradesh suggested that sugar should be kept in the exempt
category as sugar factories were in doldrums and this also affected the farmers. The Hon’ble Deputy Chief
Minister of Delhi and the Hon’ble Minister from Tamil Nadu supported the proposal. The Secretary stated
that the existing incidence of Central Excise duty alone on sugar was more than 6% and it was proposed to
be kept at the rate of 5%. He stated that putting sugar in the exempted category would lead to huge loss of
revenue. After discussion, the Council agreed not to change the recommended tax rate for sugar at 5%.

(xviii) Tamarind: The Hon’ble Minister from Telangana suggested that tamarind should be kept under
the exempt category. The Secretary clarified that fresh tamarind was already in the exempt category.

(xix) Fertilizers: The Hon’ble Minister from Andhra Pradesh suggested that the fertilizers sold by Primary
Agricultural Co-operative Societies should be kept under the exempt category. The Hon’ble Minister from
Telangana supported this proposal. The Secretary stated that the raw materials used for making fertilizers
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were chemicals which were proposed to be taxed at the rate of 18% and exempting fertilizers would lead
to a situation of inverted duty structure leading to large amounts of refund. After discussion, it was agreed
to keep fertilizers at the proposed rate of 12%.

(xx) Cotton fabrics, cotton textiles and man-made fabrics: The Hon’ble Minister from Andhra Pradesh
suggested that cotton fabrics and man-made fabrics should be kept in the exempt category. The Hon’ble
Deputy Chief Minister of Delhi suggested that cotton fabrics and cotton textiles should be kept in the
exempt category. The Hon’ble Deputy Chief Minister of Gujarat suggested that the same tax rate should be
applied for the value chain of cotton and silk. The Secretary suggested that the goods falling in the entire
textile chain could be discussed separately. The Council agreed to this suggestion.

(xxi) Organic waste: The Hon’ble Minister from Andhra Pradesh suggested that this should be kept in the
exempt category. The Joint Secretary (TRU-I), CBEC, clarified that municipal waste, sewage sludge and
chemical waste falling under Chapter 38 were already exempt.

(xxii) Dry fish, salted and fermented: The Hon’ble Minister from Meghalaya suggested that this product
should be kept in the exempt category. The Hon’ble Deputy Chief Minister of Manipur supported this
proposal. He stated that dry fish, fermented fish and smoked fish were sold by women in the unorganised
sector and it would be difficult to administer tax on these goods and would lead to high cost of collection.
The Secretary stated that dry fish was an industrial product which required processing and processing
industry would get input tax credit which could be passed through if the product was taxed at the rate of
5%. He further pointed out that dry fish sold by fishermen would not attract GST because of very low
turnover (below Rs. 10 lakh in Special Category States and Rs. 20 lakh in other States). He further stated
that as fish would be transported to the North-Eastern States from other States like Andhra Pradesh, there
would be tax on supply of transport services which could also be passed through by keeping a low tax of
5%. The Council agreed to this suggestion.

(xxiii) Indigenous hand-made musical instruments: The Hon’ble Minister from Uttar Pradesh suggested
that these goods should be kept under the exempt category. The Secretary stated that the GST rate for these
products was discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in
Srinagar and it was agreed at the officers’ level that instead of the proposed rate of 12%, these could be
kept under the exempt category. He stated that this item was covered in the addendum to the GST rate
schedule for goods circulated during the Council meeting on 18 May 2017 (Annexure-4 of the Minutes).
The Council agreed to this proposed change.

(xxiv) ‘Puja samagri’ including ‘Hawan samagri’: The Hon’ble Minister from Uttar Pradesh suggested
that these should be kept under the exempt category. The Secretary suggested that the Fitment Committee
should first define the term ‘puja samagri’ and then it might be exempted. The Council agreed to this
suggestion.

(xxv) Footwear: The Hon’ble Minister from Uttar Pradesh suggested that low value footwear sold at Rs.
200-300 should be kept under the exempt category. The Hon’ble Deputy Chief Minister of Delhi suggested
exemption from tax for footwear of value upto Rs. 500. The Hon’ble Minister from Bihar suggested that
shoes and chappals of plastic should be exempt. Ms. Smaraki Mahapatra, CCT, West Bengal, suggested
that cheaper footwear should be taxed at the rate of 5%. The Hon’ble Chief Minister of Puducherry stated
that taxation on footwear should be categorised on the basis of their sale price. The Hon’ble Minister from
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Kerala observed that chappals other than hawai chappals and straps thereof were proposed to be kept in
the 18% rate slab and he proposed that these should be taxed at the rate of 12% and shoes be taxed at the
rate of 28%. The Secretary suggested that the tax rate on footwear products should be discussed separately.
The Council agreed to this suggestion.

(xxvi) Sago (sabudana): The Hon’ble Minister from Tamil Nadu suggested that sago should be kept under
the exempt category. He stated that Tamil Nadu was a large producer of sago whose input was tapioca and
it was a food product of the common man. He stated that if it was taxed at 5%, the full burden of tax would
fall on the common man and this would affect the interests of the producers and the consumers. He informed
that this product also faced competition from Thailand and Vietnam. The Hon’ble Minister from Jharkhand
also supported the proposal to keep sago under the exempt category. After discussion, it was agreed that it
need not be kept under the exempt category as it was a processed product and by exempting it, local produce
would not be able to face competition with imported goods. The Council agreed that it might be kept at the
proposed rate of 5%.

(xxvii) Honey: The Hon’ble Minister from Telangana stated that honey which was proposed at 5% rate
was sold by co-operative societies and it should be kept under the exempt category. The Secretary stated
that honey sold by well-known brands like Dabur carried out value addition and also incurred advertisement
costs. He stated that if honey was exempted, the companies supplying them would be denied input tax
credit for taxes paid during value addition and advertisement. He suggested that natural honey other than
that put up in unit container and bearing a registered brand name might be kept at Nil rate whereas natural
honey put up in unit container and bearing a registered brand name might be taxed at 5%. The Council
agreed to this suggestion.

(xxviii) Chemical contraceptives: The Hon’ble Deputy Chief Minister of Delhi suggested that chemical
contraceptives should be exempted from tax. The Secretary stated that the GST rate for this product was
discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in Srinagar and it
was agreed at the officers’ level that instead of the proposed rate of 5%, it could be kept under the exempt
category. He stated that this item was covered in the addendum to the GST rate schedule for goods
circulated during the Council meeting on 18 May 2017 (Annexure-4 of the Minutes). The Council agreed
to this proposed change.

(xxix) Wheel-chair for physically handicapped persons: The Hon’ble Deputy Chief Minister of Delhi
suggested that wheel-chairs should be kept in the exempt category. The Secretary stated that this product
should be kept at 5% so that the input tax credit on taxes paid on the inputs could pass through. The Council
agreed to this suggestion.

(xxx) Sale by CSD Canteen: The Hon’ble Deputy Chief Minister of Delhi stated that sale by CSD Canteen
should be exempt. The Secretary suggested that this issue should be discussed separately. The Council
agreed to this suggestion.

(xxxi) Power driven agricultural implements: The Hon’ble Minister from Haryana stated that these
implements should be kept under exempt category, or alternatively under the 5% category, as tax on these
implements would increase the input cost of agriculture and this cost was not accounted for in the Minimum
Support Price (MSP) announced by the Government for agricultural products from time to time. He added
that while discussing the fitment rates, one could not ignore the cascading impact on primary products and
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that the input tax for farmers should not go up as this would lead to inflation. The Chief Minister of
Puducherry supported this proposal. The Hon’ble Minister from Karnataka suggested that these goods could
be taxed at the rate of 5%. The Secretary stated that there would be embedded input taxes on these products,
and therefore, these should be kept at the rate of 12%. He further added that if there was no headline rate
of GST on this product, no IGST could be charged on import of similar products and this would put
domestic manufacturers at a disadvantage The Hon’ble Minister from Haryana observed that according to
their estimates, embedded taxes on these goods would not be more than 3% and that if the cost of local
agricultural implements was increased, this would encourage imports. After further discussion, the Council
agreed to discuss this issue again.

(xxxii) Hand tools: The Hon’ble Minister from Rajasthan stated that agricultural hand tools like karani,
etc. should be under the exempt category. The Secretary clarified that agricultural hand tools falling under
HS Code 8201 were already kept in the exempt List.

(xxx) Cancer drugs: The Hon’ble Minister from Maharashtra stated that 118 drugs for cancer should be
kept under exempt category instead of the presently recommended 5% List. The Hon’ble Deputy Chief
Minister of Gujarat suggested that the generic medicines should be taxed at Nil rate of GST. The Hon’ble
Deputy Chief Minister of Delhi suggested that other than those medicines which were exempt, all others
should be taxed at the rate of 5%. The Secretary stated that there were 255 drugs or medicines and diagnostic
kits that were kept at 5% rate, which included life-saving and cancer related drugs while all other drugs
were proposed to be taxed at the rate of 12%. He stated that as there was tax on intermediate chemicals, the
cancer drug industry would not like the final products to be exempted. As regards the proposal to exempt
generic medicines, he stated that it would be very difficult to monitor and distinguish the supply of generic
and branded medicines, and therefore, both were kept in the 12% rate slab. The Council agreed to keep the
rates of tax on drugs as recommended in the agenda notes.

(xxxiii) Kerosene PDS: The Hon’ble Minister from Maharashtra suggested that PDS kerosene should be
kept under the exempt category. After discussion, it was agreed that it should continue to be in the 5% rate
category.

(xxxiv) Electricity: The Hon’ble Minister from Punjab stated that electricity also needed to be put under
the exempted List. The Hon’ble Minister from Karnataka stated that in his State, electricity was exempted
from VAT. The Secretary stated that prima facie taxation on electricity was in the domain of the States as
‘taxes on the consumption or sale of electricity’ was covered under List II (Entry 53) of the Schedule 7 of
the Constitution. He added that the issue could be examined further and if necessary, it could be put in the
exempt List. The Council agreed to this suggestion.

(xxxv) Coffee beans: The Hon’ble Minister from Karnataka stated that taxation on coffee and tea should
be equal. He further stated that as raw tea leaves were exempt, coffee beans should also be exempt and not
taxed at the proposed rate of 5%. He clarified that unprocessed coffee beans were a primary product and it
could not be used directly by the consumers. After discussion, the Council agreed that coffee beans, not
roasted, should be exempted from tax.

(xxxvi) Assistive devices for disabled: The Hon’ble Minister from Kerala suggested that such devices
should be kept in the exempt category. The Secretary stated that this would lead to embedded taxes in the
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final product and would be harmful for the domestic industry. The Council agreed not to put the assistive
devices in the exempt category.

(xxxvii) Kerosene stove: The Hon’ble Deputy Chief Minister of Gujarat suggested that kerosene stove
should be charged at Nil rate of tax. However, after discussion, Council agreed to keep the tax rate at 12%.

(xxxviii) Areca nut: The Hon’ble Minister from Karnataka stated that fresh areca nut harvested from trees
was proposed to be taxed at Nil rate, the dry and processed areca nut was proposed to be taxed at the rate
of 12%. He stated that the weighted average of the combined tax incidence today would not be more than
5%. He stated that farmers sold dried areca nut and its rate of tax should not be more than 5%. The Hon’ble
Minister from Meghalaya stated that areca nut was a perishable agricultural product and green areca nut
should be taxed at zero per cent and dried areca nut should be taxed at 5%. The Secretary stated that in
Chapter 8 of the HSN, a carve out could be considered for dried, unprocessed areca nut to be taxed at 5%
which should not be called betel nut. Accordingly, it was proposed that dried areca nuts, whether or not
shelled or peeled, might be kept at 5%. The Council agreed to this proposal.

Annexure II (List of goods at 5% GST rate):

(xxxviii) Dry fruits: The Hon’ble Deputy Chief Minister of Delhi suggested that dry fruits should be kept
in the 5% List instead of the presently proposed rate of 12%. The Secretary stated that dry fruits were
consumed by better-off sections of the society, and therefore, it could be taxed at the rate of 12%. The
Council agreed to this suggestion.

(xxxix) Natural Resin (‘lisa’): The Hon’ble Minister from Uttarakhand suggested that resin should be
taxed at the rate of 5% instead of the proposed rate of 18% as this was collected by the poorer sections of
the society. After discussion, the Council agreed to this suggestion and decided to put natural gums, resins,
etc. in the 5% rate category.

(xl) Tendu leaves: The Hon’ble Minister from Madhya Pradesh suggested that this should be taxed at the
rate of 28% and not at 5%. The Secretary suggested that the rate of tax on tendu leaves could be discussed
separately along with the rate of tax on bidi. The Council agreed to this suggestion.

(xli) Dried tobacco leaves: The Hon’ble Deputy Chief Minister of Gujarat suggested that the dried tobacco
leaves should be kept in the category of exempt goods instead of at the rate of 5%. After discussion, the
Council agreed to levy 5% GST on tobacco leaves under reverse charge.

(xlii) Rubber tyres: The Hon’ble Minister from Kerala suggested that the rate of tax on rubber tyres should
be increased from 5% to 12%. The Joint Secretary (TRU-I), CBEC, informed that pneumatic rubber tyres
of a kind used in bicycles, cycle rickshaws and three-wheeled powered cycle rickshaws were at 5% while
other pneumatic tyres were at 28%. After discussion, the Council agreed that rubber tyres should be taxed
at the rates as proposed in the agenda notes.

(xliii) Semi-mechanised safety matches: The Hon’ble Minister from Tamil Nadu stated that match
industry was highly labour intensive and gave livelihood to a large number of workers in Tamil Nadu. He
observed that the present proposal was to tax hand-made safety matches at the rate of 5% and the rest at the
rate of 18% and suggested that semi-mechanised safety matches should also be taxed at the rate of 5% and
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only matches manufactured by fully mechanised process should be taxed at the rate of 18%. The Secretary
stated it would not be advisable to create a separate classification for semi-mechanised safety matches as
in a multi-stage levy like GST, it would not be possible to verify this aspect at all stages and this would
create disputes at the field level. The Council agreed not to have a separate rate of tax for semi-mechanised
safety matches.

(xliv) ‘Namkeen’ including ‘Khakhra’: The Hon’ble Minister from Rajasthan stated that namkeen (bhujia)
should not be taxed at the rate of 18% and that it should be kept in the 5% category, particularly when
‘rasagulla’ was to be taxed at the rate of 5%. He added that namkeens sold by multi-national companies
could be taxed at a higher rate. The Hon’ble Deputy Chief Minister of Gujarat suggested that the Gujarati
namkeen, khakhra, should be kept under the exempt category as it was consumed by common people. The
Secretary stated that khakhra was taxable at the same rate as other namkeen which was proposed to be taxed
at the rate of 18%. The Hon’ble Chairperson stated that the packed namkeen was sold by big brand owners
and they should be taxed whereas the smaller suppliers would come within the exemption limit of Rs. 20
lakh. The Hon’ble Deputy Chief Minister of Gujarat very strongly recommended that the tax rate for
khakhra should not be the same as for other namkeens. The Secretary stated that namkeens attracted Central
Excise duty of 5% and in most States, VAT of 5%, and therefore, the rate of all namkeens, including
khakhra, could be kept at 12% instead of the recommended rate of 18%. The Council agreed to this
suggestion.

(xlv) Clay bricks: The Hon’ble Minister from Uttar Pradesh stated that clay bricks should be kept under a
compounding scheme as it was very difficult to keep track regarding the quantum of bricks supplied by the
brick kilns. He stated that in the alternative, clay bricks should be kept at a higher rate. The Secretary stated
that it would not be advisable to have a separate compounding scheme for clay bricks or to keep them at a
higher rate. He stated that tax evasion could be addressed through other means. The Hon’ble Minister from
Meghalaya and the Deputy Chief Minister of Gujarat stated that any increase in the rate of tax on clay
bricks would adversely affect the Pradhan Mantri Awas Yojana Scheme. The Council agreed to keep the
tax rate of clay bricks at 5%.

(xlvi) Fly ash bricks: The Hon’ble Minister from Bihar suggested that fly ash bricks should be taxed at the
rate of 5% as encouraging use of such bricks would help save land in thermal power plants. The Secretary
stated that the GST rate for this product was discussed during the meeting of officers of the Centre and the
States on 17 May, 2017 in Srinagar and it was agreed at the officers’ level that instead of the proposed rate
of 18%, it could be taxed at the rate of 12%. He stated that this item was covered in the addendum to the
GST rate schedule for goods circulated during the Council meeting on 18 May 2017 (Annexure-4 of the
Minutes). The Council agreed to this proposed change.

(xlvii) Coal: The Hon’ble Minister from Uttar Pradesh suggested that the rate of coal should be increased
from 5% to 12%. The Secretary stated that coal was a very sensitive product and though its current incidence
of tax was about 10%, it was being kept in the 5% List. He stated that some coal might be used as an
industrial input but it was also used for generation of electricity. He further stated that presently, imported
coal attracted an additional duty of customs (CVD) at the rate of 2% and this would go up to 12% leading
to substantial increase in the cost of power generation. He added that coal was also levied to a cess of Rs.
400 per metric tonne. He stated that raising the rate of tax on coal would only increase the subsidy burden
of the Governments as the Electricity Boards would seek more subsidy. He, therefore, suggested to keep
the rate of tax on coal at 5%. The Council agreed to this suggestion. The Hon’ble Minister from
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Chhattisgarh suggested that there should be a separate classification for coal used captively for generation
of power. The Hon’ble Chairperson stated that this would pose challenge for levying the tax. After
discussion, the Council agreed not to have a separate classification for coal used captively for generation
of power.

Annexure III (List of goods at 12% GST rate):

(xlviii) Plywood and particle board: The Hon’ble Minister from Chhattisgarh stated that plywood and
particle board should be kept in the 12% List instead of the presently proposed tax rate of 28%. The
Secretary explained that only specified boards including bagasse based boards and boards made from
agricultural residue were proposed to be taxed at the rate of 12% but other wood based boards and plywood
were proposed to be taxed at the rate of 28%. He added that all building materials were proposed to be
taxed at the rate of 28%. The Hon’ble Minister from Haryana stated that his State was a major manufacturer
of ply boards and expressed an apprehension that if tax rate was increased, it would lead to more evasion
of taxes. The Hon’ble Minister from Meghalaya stated that his State had a very high green coverage of
coniferous forest and if cost of plywood was increased, there would be temptation to cut the trees and to
use the planks directly. The Hon’ble Minister from Kerala suggested that wood based particle board should
be taxed at the rate of 18%. The Hon’ble Chairperson stated that tax on these goods was not being imposed
for the first time and if the existing combined tax rate was about 30%, it would be reasonable to keep it at
28% but not at 18%. He added that if such a steep reduction was made on one item, the Members should
also suggest an item on which GST rate could be increased correspondingly. After discussion, the Council
agreed to keep the rates as proposed in the agenda notes.

(xlix) Mosquito net: The Hon’ble Minister from Tamil Nadu stated that this was a life-saving product and
was used by the common man and due to these considerations, no VAT was charged on this product in his
State. He suggested that keeping in mind the availability of ITC, mosquito net should be levied to tax at the
rate of 5% instead of the proposed 12%. It was suggested to keep this item in 12% bracket at par with fish
net. The Council agreed to this proposal.

(l) Mobile phone: The Hon’ble Minister from Chhattisgarh stated that in his State even when duty on
mobile phone was reduced to 12%, there was no reduction in the price of mobile phones but there was
substantial loss of revenue to the State. He suggested that tax rate on mobile phones should be kept at either
18% or 28%. The Hon’ble Minister from Uttarakhand suggested to increase the rate of tax on mobile phone
from 12% to 18%. The Hon’ble Minister from Kerala suggested that mobile phone should be taxed at the
rate of 18%. The Secretary stated that the present combined incidence of tax on mobile phone was around
14% and therefore, it was put in the rate slab of 12%. He stated that this product was also very important
for the Digital India Programme. The Hon’ble Deputy Chief Minister of Delhi stated that there was already
a large grey market for mobile phones, and therefore, tax on it should not be too high. The Hon’ble
Chairperson observed that this product was now being substantially manufactured in India. The Council
agreed to keep the rate of tax on mobile phone at 12%.

(li) Coconut water: The Hon’ble Chief Minister of Puducherry stated that tender coconut water should not
be taxed at the rate of 12%. Shri Alok Shukla, Joint Secretary (TRU-I), CBEC, clarified that only packaged
tender coconut water was proposed to be taxed at the rate of 12%. The Secretary suggested that tender
coconut water, put up in unit container and bearing a registered brand name, might be kept at 5% while
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other tender coconut water being served fresh might be kept at Nil rate. The Council approved the
suggestion.
(lii) Copper articles: The Hon’ble Minister from Kerala stated that table and kitchen or other household
articles of copper should be kept at a rate higher than 12%. However, after discussion, the Council agreed
to keep the rate of such goods at 12%.
(liii) Sports goods: The Hon’ble Deputy Chief Minister of Delhi suggested that sports goods other than
gym equipment should be taxed at the rate of 5%. After discussion, the Council agreed to keep the rate
sports goods other than gym equipment at 12% and of gym equipment at 28% as recommended in the
agenda notes.
(liv) Insulin: The Hon’ble Deputy Chief Minister of Gujarat suggested to tax this product at a lower rate.
The Secretary stated that the domestic manufacturers would suffer if the tax rate on insulin was lowered.
The Council approved the rate of 5% as proposed in the agenda notes.
Annexure IV (List of goods at 18% GST rate):

(lv) Fruits, nuts and other edible parts of plants, otherwise prepared or preserved: The Hon’ble
Deputy Chief Minister of Delhi stated that this entry appearing at Sl.No.8 of Annexure IV attracting a tax
rate of 18% had an overlapping entry at Sl.No.4 at Annexure II attracting a rate of 5% (edible fruit and nuts,
in frozen state or preserved) and that this could lead to evasion of tax. He suggested to rectify it by deleting
the word ‘preserved’ from the entry at Sl.No.4 at Annexure II. The Joint Secretary (TRU-I), CBEC,
explained that entry at Sl.No.8 of Annexure IV referred to fruits, nuts and other edible parts of plants,
prepared or preserved, by vinegar or acetic acid which fell under Chapter 20 whereas the entry at Sl.No.4
of Annexure II referred to fruits and nuts provisionally preserved (for example, by sulphur dioxide gas or
in brine) which fell under Chapter 8. He stated that both were distinct entries under different Chapters of
the Tariff.

(lvi) Inorganic and organic chemicals: The Hon’ble Deputy Chief Minister of Delhi stated that these
being input materials, should be taxed at the rate of 12%. The Secretary stated that it was proposed to tax
all intermediate products at the standard rate of 18%. The Council agreed to this suggestion.

(lvii) Betel nut product known as ‘Supari’: The Hon’ble Chief Minister of Puducherry suggested to raise
its rate from 18% to 28%. After discussion, the Council agreed to keep the tax rate at 18%, since it was an
evasion prone item.

(lviii) Insecticide and rodenticide: The Hon’ble Chief Minister of Puducherry suggested that these
products should be taxed at the rate of 5%. The Secretary stated that such a rate structure would lead to a
lot of input tax credit overhang and would lead to large amount of refund claims. The Council agreed to
keep the rate of these products at 18%.

(lix) Helmet: The Hon’ble Chief Minister of Puducherry suggested that the rate of tax for helmet should
be reduced to 5% as it was very important for road safety. The Secretary stated that as per the combined
incidence of tax, this product should be in the 28% rate slab, but as the inputs for this product would be
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taxed at the rate of 18%, the rate of tax on helmet was already proposed to be kept at 18%. The Council
agreed to keep the rate of tax for helmet at 18%.

(lx) Information Technology (IT) products: The Hon’ble Minister from Karnataka stated that IT products
were facing global competition and NASSCOM had suggested that the IT industry would be better off if
IT products in India were classified as per the ITA-I (Information Technology Agreement-I) of the WTO.
The Joint Secretary (TRU-I), CBEC, stated that the basis of classification of IT products under ITA-I and
GST was the same, namely, the HSN and 217 items spread over HSN Chapters 38 to 90 were covered under
the ITA-I agreement. The CEA stated that India was a signatory of ITA-I but not ITA-II and it only obliged
the signatory countries to allow import of IT products at Nil Customs duty and there was no harmonisation
of domestic taxes. The Hon’ble Minister from Karnataka stated that the annual exports from IT sector was
approximately Rs. 200,000 crore and that he was not seeking any rate concession for IT products but
requested to recheck whether the classification of goods under ITA-I and GST was in harmony as his
feedback from NASSCOM was that they were not.

(lxi) Recycled products: The Hon’ble Minister from Karnataka suggested that in order to incentivise use
of recycled materials, there should be a lower differential rate for recycled products like recycled paper and
recycled plastic. The Joint Secretary (TRU-I), CBEC, stated that if such a differentiation was made, the
importers would also claim a similar rate differential and this would create very wide spread classification
disputes. The Hon’ble Minister from Karnataka stated that it was a national aspiration to use recycled
products. The Hon’ble Minister from Kerala stated that instead of tax exemption, subsidies could be given
to encourage the use of recycled products. The Council agreed not to have a rate differential for recycled
products.

(lxii) Sanitary napkins and tampons: The Hon’ble Minister from Kerala suggested that the rate of tax
on these products should be reduced to 12%. The Secretary stated that these goods had already been moved
to the List of goods under 12% rate slab. The Council agreed to this rate.

(lxiii) Arms and ammunition: The Hon’ble Minister from Kerala stated that the rate on arms and
ammunition should be kept in the square bracket. After discussion, the Council agreed to the rate as
proposed in the agenda notes (i.e. 18% in Chapter 93).

(lxiv) Packed and branded cereals: The Hon’ble Minister from Kerala observed that many goods
proposed to be exempted from tax were also supplied by big enterprises and therefore, branded products
packed in unit containers should be taxed at the rate of 5%. The Hon’ble Chief Minister of Puducherry
stated that branded cereals like packed basmati rice should be levied to tax. The Secretary stated that the
Fitment Committee had discussed whether food grains and cereals packed in unit containers and branded
should be taxed at the rate of 5% instead of keeping them at Nil rate. He suggested that these goods could
be taxed at the rate of 5%. The Hon’ble Minister from Haryana stated that in order to encourage investment
in food sector, it would be desirable to exempt them. The Hon’ble Deputy Chief Minister of Gujarat stated
that those cereals which were kept at Nil rate of tax should remain so irrespective of the fact that they were
sold in a packed and branded state. The Hon’ble Minister from Bihar stated that a lot of money was being
spent on advertisement of branded cereals, and therefore, they should be subject to tax. The Hon’ble
Minister from Punjab also supported the suggestion to levy tax on packed and branded cereals. The Hon’ble
Deputy Chief Minister of Delhi stated that even retailers in small shops packed cereals in packages of 1 kg
and 2 kg and these should not get taxed. The Hon’ble Minister from Kerala stated that the term ‘branded’
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meant use of a trade mark. The Hon’ble Minister from Jharkhand stated that all branded food should be
taxed, as products like branded atta were sold at a high price. The Hon’ble Minister from Maharashtra
stated that almost every district had a brand as for instance, there was a brand of Mahakali atta sold by
ladies. The CCT, West Bengal, did not support the proposal to tax packed and branded food items. The
Hon’ble Minister from Haryana stated that the activity of branding should not be penalised by way of a tax.
The Hon’ble Minister from Karnataka stated that the primary grains were also being mostly sold in packed
condition as milk, and therefore, it would be advisable to exempt packed and branded primary products.
The Secretary stated that a small 5% tax on packed primary commodities would encourage the food
processing industry as they could take credit of the tax paid on inputs. The Hon’ble Chairperson stated that
it would be politically unwise to tax packed and branded milk. The Hon’ble Minister from Haryana stated
that taxing packed pulses and grains would cause inflation. The Hon’ble Minister from Kerala suggested
that tax could be levied on such branded primary products whose brand names were registered with the
office of the Trade Mark. The Hon’ble Chairperson stated that this criterion might not help as even if the
name Amul was not registered as a brand name, it could get the same right as a registered trade mark. The
Hon’ble Minister from Assam stated that all big brands selling packed and branded primary commodities
should be subject to tax. The Hon’ble Deputy Chief Minister of Delhi stated that more and more consumers
were moving towards buying packed and branded cereals. The Hon’ble Minister from Haryana suggested
that decision on this issue could be postponed to a later date. The Council agreed to this suggestion.

(lxv) X-ray plates and films: The Hon’ble Deputy Chief Minister of Gujarat suggested that the rate of tax
on x-ray plates and films for medical use should be reduced from 18% to 12% as bulk of these goods were
used by Government hospitals. After discussion, the Council agreed to reduce the rate of tax on x-ray plates
and films for medical use to 12% while retaining the proposed rate of 18% for x-ray films for other use.

(lxvi) Stent for heart surgery: The Hon’ble Deputy Chief Minister of Gujarat suggested that stent for
heart surgery should be taxed at the rate of 5%. The Secretary clarified that coronary stent falling under
Chapter 90 was already proposed to be taxed at the rate of 5%. The Council approved this proposal.

(lxvii) Bio-diesel: The Hon’ble Deputy Chief Minister of Gujarat stated that bio-diesel should be taxed at
the lower rate. After discussion, the Council agreed to keep the rate of tax on bio-diesel at 18%.

(lxviii) Food served in anganwadis: The Hon’ble Deputy Chief Minister of Gujarat raised a question
whether food served in anganwadis like upma, sheera, etc. would get covered as preparations for infant
use. He stated that rate of tax for food served in anganwadis should be exempt. The Secretary stated that
this would be difficult to administer and would create classification disputes. He further added that in any
case, if these items were served fresh, there would be no tax on them. The Council agreed not to have a
separate tax exemption for food served in anganwadis.

Annexure V (List of goods at 28% GST rate):

(lxix) Motor vehicles: The Hon’ble Chief Minister of Puducherry stated that bigger and smaller cars
should not be taxed at the same rate. The Joint Secretary (TRU-I), CBEC, stated that all cars were proposed
to be taxed at the rate of 28% but the rate of compensation cess was proposed to be low for smaller cars.
The Council agreed to this suggestion.
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(lxx) Cement: The Hon’ble Deputy Chief Minister of Delhi stated that as real estate was kept out of GST,
to help this sector, the rate of cement should be in the 18% rate slab. The Joint Secretary (TRU-I), CBEC,
stated that the existing Excise Duty on cement was 12.5% plus a component of specific rate and VAT at
standard rate. Therefore, the rate of tax on cement under GST would be lower than the present combined
tax incidence. The Council agreed to keep the rate of tax on cement at 28%.

(lxxi) Paint: The Hon’ble Deputy Chief Minister of Delhi stated that as real estate was kept out of GST, to
help this sector, the rate of paint should be in the 18% rate slab. After discussion, the Council agreed that it
should be taxed at the rate of 28%, in line with the present incidence of tax on this item.

(lxxii) Roofing material: The Hon’ble Minister from Uttarakhand stated that all building materials were
proposed to be taxed at the rate of 28% and suggested that there should be a lower rate of tax for roofing
materials like corrugated sheets of steel or asbestos. The Secretary stated that it would not be advisable to
have separate rates for certain building materials. The Council agreed to this suggestion.

(lxxiii) Marble and granite slabs: The Hon’ble Minister from Rajasthan stated that these products were
no more luxury items, and therefore, both should be taxed at the rate of 12%. He further stated that this
sector gave large scale employment to people. The Hon’ble Chairperson observed that marble and granite
was largely used by rich people. The Hon’ble Minister from Rajasthan stated that there were different
grades of marble from high to the low end and it was used by all sections of the society. After discussion,
the Council agreed to keep the rate of tax on marble and granite slabs at 28%.

(lxxiv) Motorcycles: The Hon’ble Chief Minister of Puducherry stated that motorcycles were used by
poorer and mid-income sections of the society, and therefore, they should be taxed at a lower rate. The
Secretary stated that the combined rate of taxation on motorcycles was approximately 31%, and therefore,
it was proposed to be taxed at the rate of 28%. The Council agreed to keep the rate of tax on motorcycles
at 28%.

(lxxv) Hybrid and Electrically operated cars: The Hon’ble Minister from Karnataka stated that the rate
of tax on these cars should be lower so that they could become affordable. He added that the world over,
hybrid cars were taxed at low rates. The Joint Secretary (TRU-I), CBEC, stated that electrically operated
cars were already proposed to be taxed at the rate of 12%. The Secretary stated that the GST rate for hybrid
cars be at the rate of 28%. The Council agreed to this.

(lxxvi) Carriage for disabled persons: The Hon’ble Minister from Uttar Pradesh suggested that carriage
for physically challenged persons which included motorised wheel chairs should be taxed at a lower rate.
The Secretary stated that since wheel chairs for disabled persons falling under Chapter heading 8713 was
already at 5%, carriages for disabled persons, whether or not motorised, falling under Chapter head 8713,
might also be kept at 5%. The Council agreed to this suggestion.

Rates of GST Compensation Cess:

16.1. The proposed rate of Compensation Cess for different supplies of goods as contained in Annexure
XI of Volume-3 of the detailed agenda notes was taken up for discussion. Introducing this subject, the
Secretary stated that the rate of Cess on the varieties of cigarettes and other tobacco products was proposed
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on the lines of the present Central Excise tariff structure on these products and that the proposed multiple
rates on cigarettes was proposed to maintain the existing tax rates.

16.2. Regarding the proposal to charge cess on motor vehicles, the Secretary stated that the present
combined incidence of tax on small cars was around 28% and in order to protect revenue, it was proposed
to impose a cess of 1% on small petrol cars and 3% on small diesel cars. He suggested that the proposed
cess of 1% and 3% on small petrol and diesel hybrid motor vehicles respectively (at Sl.No.50 and 51 of
Annexure XI referring to cars of length less than 4 metre and engine capacity of less than 1200 cc for petrol
vehicles and of less than 1500 cc for diesel vehicles) and 1% cess on hydrogen vehicles based on fuel cell
technology of length less than 4 metre (Sl.No.54 of Annexure XI) could be removed. The Secretary stated
that large hybrid vehicles could be charged to Compensation Cess at the same rate (15%) as normal cars.
The Council agreed to this proposal. The Hon’ble Minister from Haryana stated that one option of levying
cess on motor vehicles could be on the basis of price bands instead of qualitative bands. He observed that
criteria like ground clearance could lead to evasion of tax and that a price based rate structure could be
adopted. The Secretary stated that due to the past experience of misuse of price based taxation system,
certain objective criteria had been adopted for taxation of various categories of cars. The Hon’ble Minister
from Haryana stated that some manufacturers might maintain the length of car applicable for lower rate of
tax but sell it at a high value and that this would lead to loss of revenue. The Secretary stated that it was not
advisable to change the criteria of taxation at this stage and suggested to adopt the criteria as used for excise
classification and as recommended by the Fitment Committee. The Council agreed to this proposal.

16.3. The CEA suggested that the rate structure for cess could be rationalised by using certain objective
criteria. The Secretary stated that rationalisation could be done at a later date as at this stage, the existing
rates of taxes needed to be maintained.

16.4. The Secretary drew attention to page 114 of Volume-3 of the detailed agenda notes where Fitment
Committee had recommended to impose cess on high-end motor bikes, say of engine capacity above 500
cc, aircrafts for personal use and yachts. As regards cess on aircrafts for personal use and yachts, the
Secretary stated that if the cost of aircrafts and yachts became very high, this could lead to evasion of tax.
The Secretary suggested that a Compensation Cess of 3% might be imposed on motor cycles of engine
capacity more than 350 cc. He further suggested that similar rate of cess could be imposed on aircrafts for
personal use and yachts and other vessels for pleasure or sports. The Council agreed to these suggestions.

IGST Exemptions/Concessions:

17. The Secretary introduced the Annexure XII of Volume-3 of the detailed agenda notes, which contained
the proposed IGST exemptions/concessions. He stated that these were mostly existing exemptions on
imports due to various multi-lateral and bi-lateral commitments and suggested that these should be
continued under GST. The Hon’ble Minister from Haryana raised a question as to why there was an
exemption from Customs duty for goods imported by the Vice President of India contained at Sl. No.13 of
Annexure XII (Notification No.106/58-Customs dated 29.3.1958). He suggested that in today’s time, such
an exemption was not desirable. The Hon’ble Minister from Bihar stated that the IGST exemption for the
Vice President of India should be continued. The Hon’ble Deputy Chief Minister of Delhi stated that his
UT had no objection to continuing with this exemption. The Council approved this exemption as well as
the other proposed exemptions/concessions from IGST.
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18. For agenda item 9, the Council approved the rates of GST on supply of goods, Compensation cess
and exemptions from IGST as presented in Volume-3 of the detailed agenda notes and the Addendum
thereto and another Addendum attached as Annexure-4 to the Minutes with the following modifications: -
GST Rate on Goods

(i) Suji: Other than put up in unit container and bearing a registered brand name, to be charged to
Nil rate of tax instead of the proposed 5% and suji put up in unit container and bearing a
registered brand name to be charged at the rate of 5%;
(ii) Dalia: Other than put up in unit container and bearing a registered brand name to be charged to
Nil rate of tax and dalia put up in unit container and bearing a registered brand name to be
charged at the rate of 5%;
(iii) Gur(jaggery): to be charged to Nil rate of tax instead of the proposed 5%;
(iv) Low Priced Biscuits: Council to discuss it separately along with the rate of tax on biscuits;
(v) Silk yarn, cotton yarn in hank: Council to discuss separately the goods falling in the entire
textile chain;
(vi) Sewing thread: Council to discuss separately the goods falling in the entire textile chain;
(vii) Chikan: not to provide any special dispensation for chikan;
(viii) Handloom and handicrafts: Council to discuss separately the goods falling in the entire textile
chain and the handicrafts;
(ix) Fish net and fish net fabric: to be charged at the rate of 12%;
(x) Cotton fabrics, cotton textiles and man-made fabrics: Council to discuss separately the goods
falling in the entire textile chain;
(xi) ‘Puja samagri’: Fitment Committee to first define the term ‘puja samagri’ and then to exempt
it;
(xii) Footwear: Council to discuss separately the tax rate on footwear;
(xiii) Sale by CSD Canteen: Council to discuss it separately;
(xiv) Power driven agricultural implements: Council to discuss it again;
(xv) Electricity: Council to examine this issue further and put it in exempt list, if required;
(xvi) Coffee beans, not roasted: To be charged to Nil rate of tax;
(xvii) Areca nut: Dried areca nuts, whether or not shelled or peeled, to be taxed at the rate of 5%;
(xviii) Natural Resin: to be charged to 5% of tax instead of the proposed rate of 18%;
(xix) Tendu Leaves and Bidi: Council to discuss separately the tax rate on biri and tendu leaves;
(xx) Dried tobacco leaves: to levy 5% GST on tobacco leaves under reverse charge;
(xxi) ‘Namkeen’ including ‘khakhra’: to be charged to 12% of tax instead of the proposed 18%;
(xxii) Mosquito net: to be taxed at the rate of 12%;
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(xxiii) Packed and branded cereals: Council to discuss separately the rate of tax on packed and
branded pulses, cereals and flours;
(xxiv) X-ray plates and films for medical use: to be charged to 12% rate of tax instead of the
proposed 18% (and retain the proposed rate of 18% for x-ray films for other use);
(xxv) Carriage for disabled persons, whether or not motorised (8713): to be taxed at the rate of
5%;

Rate of Compensation Cess on Supply of Goods
(xxvi) To not charge cess on small hybrid petrol (less than 1200 cc) and small hybrid diesel (less than
1500 cc) motor vehicles and small hydrogen vehicles based on fuel cell (of length less than 4
metre);
(xxvii) Levy a cess on motorcycles with engine capacity above 350 cc at the rate of 3%;
(xxviii)Levy a cess at the rate of 3% on aircraft for personal use and yacht and other vessels for pleasure
or sports.

Exemptions/Concessions from IGST
(xxix) All proposed IGST exemptions/concessions in Annexure XII of Volume-3 of the detailed
agenda notes approved.

Discussion on rates for Services

19. The Secretary introduced the proposed rates of tax and exemptions for services as contained in
Annexure VI to X of Volume-3 of the detailed agenda notes and the Addendum thereto. He stated that after
discussion during the meeting of officers of the Centre and the States held on 17 May, 2017 in Srinagar, it
was agreed to add a few more services to be exempt under GST as they were exempted under the existing
Service Tax regime and was circulated to the Council on 18 May, 2017 (Annexure-4 of the Minutes). The
Council, thereafter, took up for consideration the various Annexures VI to X and Annexures XIII and XIV
relating to services contained in the detailed Agenda Notes for agenda item 9.

Annexure VI (List A-1):

19.1. The Secretary stated that in List A-1 of Annexure VI, it was proposed to continue with 54 exemptions
under GST that were available under the Service Tax. He stated that one additional exemption was
proposed in respect of services provided by GSTN to the Government. The Hon’ble Minister from
Chhattisgarh suggested that the Local Self Government should also be exempt from GST. The Hon’ble
Minister from Punjab raised an apprehension that security services provided to the Chief Ministers and the
Governors would become taxable. The Hon’ble Deputy Chief Minister of Gujarat expressed an
apprehension that functions of local bodies like giving domicile certificates, caste certificates, etc. would
also become taxable. The Secretary clarified that these services were already exempt.
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19.2. Shri V.K. Garg, Advisor (GST), Punjab, stated that GST was leviable on a supply made by a person
for a consideration in the course or furtherance of business and that services given by an employer to his
employee was also subject to GST. He further stated that in Punjab, a fee was charged for giving liquor
licence and as fee had the character of service, the Government of Punjab was paying Service Tax on
collection of such fee from 1 April, 2016. He stated that where fee was being charged under the authority
of the Constitution, no GST should be payable on collection of such fee. He pointed out that Government
provided security to high dignitaries as part of its sovereign function and that since services provided by an
employer to his employee were taxable for a value above Rs. 50,000, security services would be liable to
GST. The Additional Chief Secretary, Haryana, stated that in his State also, there was a fee for giving liquor
licence and no GST should be levied on that for the reasons as explained by Punjab and also on the ground
that as alcohol for human consumption was not covered under GST, the activities connected to it should
also not be charged to GST. The Hon’ble Ministers from Himachal Pradesh, Meghalaya, Rajasthan and
Telangana also supported the view that no GST should be charged on the licence fee for giving liquor
licence for human consumption. Shri Amitabh Kumar, Joint Secretary (TRU-II), CBEC, stated that there
was no GST for services given by an employee to his employer in the course of or in relation to his
employment under Schedule III of the CGST Act. He further added that services provided by Government
to other than business entity, except the specified /prescribed services, were exempt in view of the very first
entry in list A-1. The Secretary stated that by issuing a liquor licence, the Government was giving a service
to the business entities and GST should be leviable on it. He stated that if GST was not collected for giving
service to a business entity, then the Government would lose a huge amount of revenue on spectrum fee.
He, therefore, stated that Government services given to a business entity should not be exempt as the tax
paid would also be available as input tax credit. The Hon’ble Minister from Punjab stated that this
exemption could be limited only for fees relating to liquor licences. The Secretary stated that if exemption
was given in respect of fee for giving liquor licence, then there would be very weak justification for charging
tax from telecom operators on spectrum fees. The Hon’ble Minister from Bihar stated that tax on liquor fee
should not be exempted as this tax would now be shared with the Central Government. The Hon’ble
Chairperson stated that 42% of this collection would also be shared with the States.

19.3. The Hon’ble Minister from Jammu & Kashmir raised an issue as to what was the broad policy
objective for charging tax on Government services. The Secretary stated that tax was charged on big items
like giving right-of-way for laying pipeline or sale of spectrum. The Advisor (GST), Punjab, stated that a
distinction should be made between the Constitutional power to levy a tax (like entry 51 and 56 of List II
of Schedule 7 of the Constitution) and other taxes. The Hon’ble Deputy Chief Minister of Gujarat supported
the levy of tax on the fee for giving liquor licence as this would be distributed to all the States. The Hon’ble
Minister from Assam stated that no exemption should be given for tax on fee for liquor licence as this would
send a wrong signal to the public. The Hon’ble Minister from Goa also supported this view. The Hon’ble
Minister from Punjab stated that his State had already lost Rs. 2,300 crore due to abolition of purchase tax
and it stood to lose another Rs. 1,000 crore due to tax on licence fee for liquor. The Hon’ble Chairperson
stated that this loss could be offset by increasing the rate of tax on alcohol for human consumption which
was in the State’s domain. The Advisor (GST), Punjab, stated that tax paid on spectrum fee was available
as ITC but tax paid on the liquor fee by the contractor could not be used as ITC as there was no GST on
alcohol for human consumption. The Hon’ble Chairperson stated that licence fee for the present financial
year would have already been collected and they could look at changing their tax model next year.
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19.4. The Hon’ble Minister from Himachal Pradesh stated that in his State, the fee for liquor licence was
collected on quarterly basis. The Hon’ble Deputy Chief Minister of Delhi also stated that the arrangement
of charging higher tax on liquor would lead to problems. The Hon’ble Minister from Telangana stated that
in his State liquor fee was collected by a Corporation and services given by the Corporation could be
exempt. The Hon’ble Chairperson stated that from the taxation policy point of view, the price effect on
dealers or consumers of alcohol was not a primary policy objective. The Hon’ble Deputy Chief Minister of
Delhi stated that the main problem was lack of set off of ITC under State Excise. The Hon’ble Minister
from Punjab stated that liquor fee was a de facto tax and there should be no tax on tax. The Secretary stated
that grant of a licence was a service given by the Government and this could not be exempted. The Hon’ble
Chairperson stated that the only way to address this issue was to change the taxation model where excise
duty on alcohol could be increased and licence fee on liquor could be reduced. He added that for the
transitional period, the affected States could pass some order. He stated that as the States were aware of the
GST roll out, they should have changed their policy accordingly. The Hon’ble Minister from Chhattisgarh
stated that they had already changed their policy in anticipation of the GST implementation. The Hon’ble
Minister from Jharkhand stated that consumers would bear the additional cost of the tax and the
Government should not seek any exemption for the same. Shri Navin Kumar Choudhary, Finance Secretary,
Jammu & Kashmir, stated that licence fee was only about 20% of the total amount collected from alcohol
for human consumption and this could easily be passed on to the consumer. The Secretary informed that
service tax was already leviable on license fee for liquor with effect from 1 April, 2016. The Council agreed
to continue this tax on licence fee for liquor in the GST regime also and not to exempt it.

19.5. The Hon’ble Minister from Madhya Pradesh stated that an exemption should also be given for
services provided for religious pilgrimage such as Kailash Mansarovar Yatra. The Secretary clarified that
it was already exempt. Shri R.K. Tiwari, Additional Chief Secretary, Uttar Pradesh, suggested that services
given by State bodies like State Co-operative Banks should also be exempted from tax. The Secretary
stated that in the Addendum to the agenda notes for Agenda Item 9 circulated on 18 May, 2017, there was
an entry to exempt services by way of collection of contribution under any scheme of the State Governments
and under this, the States could list out their specific schemes for exemption from GST which could be
brought before the Council.


Annexure VI (List A-2):

20.1. The Secretary explained that List A-2 of Annexure VI contained proposals to continue Service Tax
exemptions in GST with modifications as recommended by the Fitment Committee. Starting the discussion
on List A-2, the Hon’ble Deputy Chief Minister of Delhi stated that at Sl.No.3, the proposed exemption
from GST to hotels with room rent below Rs. 500 per day was too low and that no hotel would be able to
take benefit of this exemption. He proposed to increase the limit of room rent to Rs. 1,500 per day. The
Hon’ble Chief Minister of Puducherry also supported this proposal and stated that people using such hotels
came from lower middle-class strata of the society. The Secretary stated that the scheme of taxation on
hotel industry under GST was that for room rent up to Rs. 500 per day, it was exempt; for room rent above
Rs. 500 and up to Rs. 2,000 per day, the proposed rate was 12%; for room rent above Rs. 2,000 and up to
Rs. 5,000, the proposed rate was 18%; and for room rent above Rs. 5,000 and for five-star hotels, the
proposed rate was 28%. He stated that during the deliberations in the Fitment Committee, the smaller States
had argued that their revenue would be adversely affected if the room rent limit for exemption was kept
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high. The Hon’ble Minister from Goa suggested to keep the exemption limit for room rent at Rs. 500 per
day as this figure was arrived at after consideration in the Fitment Committee.


20.2. The Hon’ble Chief Minister of Puducherry stated that his Union Territory was a tourist destination
where houses were being converted as hotels and there was increasing inflow of tourists. He, therefore,
suggested to keep the exemption limit for room rent at Rs. 1,000 per day. The Hon’ble Ministers from
Uttarakhand and Telangana also supported this proposal. The Hon’ble Ministers from Uttar Pradesh,
Himachal Pradesh, Jharkhand and Bihar supported the exemption limit for room rent at Rs. 500 per day.
The Hon’ble Minister from Rajasthan stated that the tourism industry and the hotel industry needed to be
treated differently and suggested the exemption limit of room rent to be Rs. 3,000 per day. The Hon’ble
Minister from Goa suggested that the exemption limit for room rent could be made Rs. 750 per day. After
further discussion, the Council agreed that the exemption limit for room rent of hotels would be Rs. 1,000
per day.

20.3. The Hon’ble Deputy Chief Minister of Delhi expressed his reservation at the proposed removal of
exemption on exhibition of cinematographic film (Sl.No.9). He stated that this exemption was needed to
promote regional films, parallel cinema, one-day events, etc. and suggested that entry at Sl.No.9 should be
modified to permit exemption to such films so that viewership of films with a social message could be
encouraged. He further stated that one-day events like marathon race etc. was a way of life in the country
and these should be encouraged. The Secretary stated that as the Entertainment Tax, Luxury Tax and
Service Tax were getting subsumed, the Fitment Committee suggested to fix a tax rate on the basis of these
taxes. He stated that if States wanted to promote a particular film, they could give reimbursement of SGST
portion of the tax. The Hon’ble Deputy Chief Minister of Delhi stated that theatre and cultural activity was
a different dimension of society and could not be treated the same as consumption of alcohol in a restaurant.
He observed that in a place like Mandi House, which had a seating capacity of 200, even 50 tickets were
sold with difficulty, and therefore, it needed to be encouraged. The Hon’ble Chairperson stated that though
Delhi had world-class stadia, it had very few big events. The Hon’ble Deputy Chief Minister of Delhi
responded that Delhi might not have many big events, it had several small events and charitable
programmes. The Secretary stated that smaller theatre groups would enjoy exemption up to the turnover of
Rs. 20 lakh. The Hon’ble Minister from Goa also agreed with the proposed rates.

20.4. The Hon’ble Minister from Punjab stated that exemption at Sl.No.7 to processes of electroplating,
zinc coating, etc. should be continued. The Secretary explained that in GST, job workers would not suffer
any tax if the value of their job charges were less than Rs. 20 lakh in a year but they would need to pay tax
if their job charges exceeded Rs. 20 lakh. He stated that in GST, it was not advisable to have a separate
exemption for activities like electroplating, zinc plating, etc. The Hon’ble Deputy Chief Minister of Gujarat
stated that even small job workers would need to keep account and work on gold and jewellery was done
at home and such small people should not be subject to tax. The Hon’ble Chairperson stated that tax would
be charged only for relatively bigger job workers. The Hon’ble Minister from Punjab stated that removing
exemption would not lead to much tax collection but would increase harassment. The Secretary stated that
in GST, job work could be done in different sectors like textile, diamonds, gold jewellery etc. and exemption
to particular activities could not be justified. The Hon’ble Deputy Chief Minister of Gujarat suggested that
tax on job charges could be kept at a lower rate. The Secretary stated that tax on the job charges would be
paid by the principal manufacturer and he would be eligible to take ITC on the same.
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Annexure VI (List A-3):
21. The Secretary stated that List A-3 of Annexure VI contained proposals to withdraw in GST certain
exemptions extended under Service Tax. He further stated that this List should be read along with
Addendum circulated on 18 May, 2017 after the meeting of officers of the Centre and the States (Annexure
4 of the Minutes) in which some exemptions were proposed to be restored and it was also provided that
services by way of collection of contribution under any scheme of the State Governments could also be
included in the exemption list after consideration by the Council. The Council approved List A-3 of
Annexure VI along with the Addendum circulated on 18 May, 2017.

Annexure VI (List B):

22.1. The Secretary explained that List B of Annexure VI contained those items on which service tax
exemption was recommended to be withdrawn or modified by the Fitment Committee but which needed to
be reviewed by the Council. The Hon’ble Deputy Chief Minister of Delhi raised a question regarding
rationale for levying tax on selling of space for advertisements in print media (Sl.No.1 of List B). The
Secretary explained that the selling of space for advertisement in the electronic media attracted Service Tax
of 18% with ITC and the same was proposed to be continued in GST. He stated that presently, selling of
space for advertisements in print media was exempt, but it was now proposed to impose a tax of 5% so that
the ITC chain could be completed because GST of 5% was proposed to be levied on news print. He stated
that 90% of the country’s newsprint was imported and the Indian manufacturers wanted a low rate of tax in
order to avoid embedded tax on newsprint manufactured in India. He further stated that 50% of
advertisement came from businesses and they would get credit for this tax. He added that 6 major news
group had proposed that a tax of 5% should be imposed on selling of space for advertisements in print
media if GST was levied on newsprint. He stated that if tax was exempted, then, the major newspapers
would suffer a disadvantage due to embedded taxes. The Principal Secretary (Finance), Chhattisgarh, stated
that they had also received representations to levy 5% tax on supply of newspapers. The Secretary stated
that this tax should not be levied as burden would fall on the consumers, who would not be eligible for ITC.
The Hon’ble Minister from Bihar stated that the print media deserved to be congratulated for coming
forward with a suggestion to levy tax in their sector. The Hon’ble Chairperson stated that the taxation on
media was different from taxation on business and there were court judgments to the effect that taxation on
media should be moderate as it was connected to the freedom of press. After deliberation, the Council
agreed to levy 5% tax on selling of space for advertisements in print media.

22.2. The Hon’ble Minister from Andhra Pradesh stated that exemption from tax for sponsorship for
sporting events organised by National Sports Federations should be reconsidered. The Hon’ble Chairperson
stated that National Sports Federations were short of funds as hardly any tickets were getting sold, and
therefore, exemption from tax for sponsorship should be considered. He stated that events like IPL and Pro-
Kabaddi were not organised by National Sports Federations, and therefore, they would pay tax as was being
done presently.

22.3. Dr. C. Chandramouli, Additional Chief Secretary, Tamil Nadu, raised an issue that in
Sl.No.2 of List B of Annexure VI, it was provided that there will be no exemption in respect of renting of
rooms in a clinical establishment during the course of providing health care services where room charges
were Rs. 2,000 or more per day. The Joint Secretary (TRU-II), CBEC, stated that the tax would be charged
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at the rate of 18% in view of entry at Sl.No.6 of Annexure IX. The Hon’ble Minister from Karnataka stated
that presently they charged luxury tax at the rate of 18% for such hospital rooms. The Hon’ble Minister
from Telangana stated that they charged tax for such hospital rooms at the rate of 10%. The Joint Secretary
(TRU-II), CBEC, stated that such luxury tax was also being charged in Kerala and a few other States. The
Hon’ble Deputy Chief Minister of Delhi stated that patients did not go to hospital for luxury but for
treatment and no tax should be levied for their stay in hospital. The Hon’ble Chairperson stated that taxation
in education and health sectors should be avoided and even if some States were charging luxury tax for
hospital rooms, rate of 18% appeared excessive. The Secretary stated that the rate could be reduced further
but a lower rate could lead to credit accumulation and demands for refund. He, therefore, proposed that tax
on room charges in hospitals could be exempt. The Council agreed to this proposal.

22.4. After further deliberation, the Council approved the proposals contained in List B of Annexure VI
and also agreed to delete the proviso to Sl.No.2 which provided for not extending exemption from tax for
renting of rooms in a clinical establishment during the course of providing health care services where room
charges were Rs. 2,000 or more per day.

Annexure VII:

23. The Secretary explained that this Annexure contained services which were proposed to be taxed at the
rate of 5%. He stated that there was no tax for travel in rail in sleeper class but travelling in higher classes
in Railways, transportation by road and freight movement by rail and road were subject to service tax with
abatement. They were proposing to keep the tax on transport of goods and passengers by rail (except
passengers travelling in sleeper class) at the rate of 5% as there was no GST on petroleum products. The
Hon’ble Minister from Uttarakhand stated that in respect of transport of passengers by air-conditioned
contract or stage carriage, no benefit of tax would now accrue to the States as it was a destination based
tax. The Secretary stated that this would be governed by the provisions of place of supply under the IGST
Act. The Hon’ble Minister from Karnataka stated that a flat composition rate of 5% on transportation by
road was a retrograde step as this would encourage grey market operations whereas the general effort under
the GST was to bring all businesses into the tax net. He stated that in order to encourage transparency of
business of transport, which was bedrock of economic development, it was important that the tax
administration should be able to ascertain as to how much fuel etc. was consumed by the transporter. He
stated that this scheme would encourage under reporting of business and a better method would be to give
certain abatement in regard to the value of fuel contained in this service and then fix the tax with full ITC.
He stated that evasion in other areas could also be assessed by making an assessment of the volume of
business of the transporter and therefore, it was important to bring it into the ITC net. The Secretary stated
that non-petrol input in transportation service was about 36% and keeping this into account, a tax rate of
5% had been fixed without any input tax credit. He further stated that the user of transport service would
be recorded as the sector was in the tax net at the rate of 5%. He added that this method of levy of tax was
followed in this sector for many years and this had not led to any serious tax evasions. He further stated
that any innovation could be considered at a later stage. The Hon’ble Minister from Karnataka suggested
that the tax rate could be kept at 8% after deducting the tax on fuel and ITC could be allowed on the same.
The Hon’ble Chairperson observed that the officers had calculated the set-off on account of petrol/diesel
and earlier the tax on transport sector came to 4.5%, which was now being made 5%. The Secretary stated
that increasing the rate of tax at a level much higher than the present rate would be disruptive for the
economy and suggested to continue with the proposed rate. The Council agreed to the proposal and
approved the proposal to levy 5% GST on all services covered under Annexure VII.
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Annexure VIII:

24.1. The Secretary stated that Annexure VIII contained the services which were proposed to be taxed at
the rate of 12%. He explained the scheme of taxation for restaurants and stated that a composition rate of
5% was available for restaurants with turnover between Rs. 20 lakh and Rs. 50 lakh and air-conditioned or
non-air-conditioned restaurants would attract a tax rate of 12% with full ITC and restaurants with liquor
licence (whether or not air-conditioned) would be taxed at the rate of 18%. The Hon’ble Minister from
Maharashtra stated that in his State, the Composition scheme was available to the restaurants at the rate of
5% where turnover was less than Rs. 3 crore and at the rate of 8% where turnover was more than Rs. 3
crore. The Hon’ble Deputy Chief Ministers of Delhi and Gujarat expressed reservation as to why a
restaurant which served alcohol should tax all its customers at the rate of 18% when many customers might
not be consuming alcohol. The Hon’ble Minister from Rajasthan suggested to keep the rate of tax for
restaurants at 12% irrespective of the fact whether or not it had a liquor licence. The Hon’ble Minister from
Meghalaya stated that all non-air-conditioned restaurants should be taxed at the rate of 5%. The Secretary
stated that the present weighted average of only VAT incidence on restaurants was about 12% and if it was
reduced to 5%, it would lead to a big loss of revenue. The Hon’ble Deputy Chief Minister of Puducherry
suggested to keep different rates of tax for air-conditioned and non-air-conditioned restaurants. After further
discussion, the Council agreed that restaurants having facility of air-conditioning or central heating at any
time during the year (whether serving liquor or not) would be levied to tax at the rate of 18%, restaurants
serving liquor would be taxed at the rate of 18% and restaurants not having facility of air-conditioning or
central heating at any time during the year and not having licence to serve liquor would be taxed at the rate
of 12%.

24.2. The Secretary stated that in the construction sector, works contracts have been deemed as service and
GST would be applicable for supply of work contract services before completion of construction of a
building but there would be no GST on the sale of a ready built building or flat. He stated that as per the
decision of the Supreme Court, no tax could be charged on the value of land, and therefore, the Fitment
Committee recommended that in a supply of works contract service where the value of land was included
in the amount charged from the service recipient (along with the value of building materials and the services
given by the contractor), one-third of the total consideration amount could be taken as the value of land for
abatement purpose. He stated that full ITC on works contract would encourage purchase of building
materials from registered suppliers but no refund of input tax credit overflow would be permitted. He stated
that presently the approximate combined incidence of tax was around 9% -10% but the headline rate of tax
would now become 12% with the benefit of ITC. He added that the overflow of input tax credit in this
sector would not be refunded. He stated that building materials would be mostly in the rate slab of 12% and
due to benefit of ITC, the prices of flats should become cheaper. He stated that consumer education would
be required on this subject.

24.3. The Hon’ble Minister from Telangana stated that two different schemes of taxation in construction
sector could lead to confusion and suggested that sale of finished flats should also get ITC as otherwise
there was a risk of builder selling finished flats as flats under construction. The Hon’ble Deputy Chief
Minister of Gujarat stated that this possibility had become remote after the enactment of the Real Estate
(Development and Regulation) Act (RERA). The Hon’ble Minister from Maharashtra stated that abatement
regarding value of land should be kept out of the current proposal as in his State, in 12 Corporations, the
land value was about 50% of the value of the flat and abatement of 30% would lead to litigation. He
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suggested that abatement should be given as per ready reckoner of the land value or on the basis of the
stamp duty value. The Hon’ble Deputy Chief Minister of Gujarat also expressed apprehension that if Courts
gave adverse judgments regarding the proposed abatement for land value, it could create problems. The
Secretary stated that taking land value as per ready reckoner would create complications as flats would be
of different sizes and common areas would also need to be allocated. He stated that if an option was given
for abatement on the basis of ready reckoner of the land value, this would lead to exercise of discretion and
could affect revenue. After discussion, the Council agreed to the proposal on the rate of tax on construction
service proposed in Annexure VIII and also the other taxation proposals in Annexure VIII.

Annexure IX:

25. The Secretary explained that this Annexure contained services which were proposed to be taxed at
the rate of 18%. He stated that some of the items covered under this Annexure such as renting of hotels and
supply of food/drinks in air-conditioned restaurants had already been discussed earlier while discussing the
services covered under Annexure VI (List A-2) and Annexure VIII respectively. He proposed that subject
to these modifications, the rate of services proposed under Annexure IX might be approved. He added that
any other service not covered in 5%, 12% or 28% Schedule would fall in this slab. The Council agreed to
the proposal.

Annexure X:

26.1. The Secretary explained that this Annexure contained those services which were proposed to be taxed
at the rate of 28%. The Hon’ble Minister from Chhattisgarh stated that local bodies had the power to levy
Entertainment Tax and if GST was also levied at the rate of 28%, the combined rate of taxation would
become very high. The Secretary stated that presently, the rate of Entertainment Tax varied from 18% to
over 100% which in the GST regime was getting pegged at the rate of 28%. He stated that this gave cushion
to local bodies to charge additional Entertainment Tax. The Hon’ble Deputy Chief Minister of Delhi stated
that 28% was not a fair rate of taxation for services covered under Sl.No.1 of Annexure X, like admission
to cinematographic film, circus, dance and theatrical performance including drama. The Hon’ble Minister
from Telangana stated that circus should not be taxed at the rate of 28%. The Secretary clarified that if the
ticket rate on circus and theatrical performance was less than Rs. 250, then the tax would be exempt. The
Hon’ble Chief Minister of Puducherry stated that tax on admission to cinema should be kept at the lower
slab of 18%. The Hon’ble Minister from Telangana suggested that the rate for entry into multiplex cinema
hall could be kept at 28% and for entry into other cinema hall could be kept at the rate of 18%. The Hon’ble
Chairperson stated that tax at the rate of about 28% was already being paid on entry into cinema halls. He
suggested that services by way of admission or access to circus, Indian classical dance including folk dance,
theatrical performance and drama could be charged to GST at the rate of 18% and the rest of the entries
under Sl.No.1 of Annexure X could be taxed at the rate of 28%. The Council agreed to this proposal.

26.2. The Hon’ble Minister from Assam raised an issue as to at what rate tax on dish TV, cable TV etc.
would be charged. The Secretary clarified that it would be charged at the rate of 18% under Sl.No.6 of
Annexure IX (all other services not specified in any exemption notification). The Hon’ble Minister from
Rajasthan suggested that limit of hotel room rent for tax at the rate of 12% should be between Rs. 1,000 to
Rs. 3,000 per day and that for tax at the rate of 18%, it should be between Rs. 3,000 to Rs. 5,000 per day.
The Hon’ble Minister from Rajasthan stated that a separate rate of tax should be fixed for heritage hotels
which were set up in remote villages and tribal areas where the cost of raw material was much higher and
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which provided job to the local people. The Secretary stated that value based criteria would be the most
appropriate method of taxation as descriptions like heritage hotels could be subject to dispute. The Hon’ble
Minister from Kerala observed that during the discussion on the rate structure, there were hardly any
proposals to increase taxes and that it was important to remember that all Members had to run Governments.
The Hon’ble Minister from Jammu & Kashmir cautioned that the architecture of GST should not be
impaired by making various carve outs and one should avoid going towards the system of modified VAT.
After further discussion, the Council agreed that hotels with room tariff of Rs. 1,000 and above but less
than Rs. 2,500 per room per day would attract the rate of 12% with full ITC and hotels with room tariff of
Rs. 2,500 and above but less than Rs. 5,000 per room per day would attract the rate of 18% with full ITC.

26.3. The Hon’ble Minister from Karnataka stated that a high tax of 28% on horse racing would lead to
evasion of tax. However, the Council agreed to keep the tax rate at 28%.

26.4. After further discussion, the Council approved the entries under Annexure X with the following
amendment: -
(i) services by way of admission or access to circus, Indian classical dance including folk dance, theatrical
performance and drama to be taxed at the rate of 18% and the rest of the entries under Sl.No.1 of Annexure
X to be taxed at 28%.

Annexure XIII:
27. The Secretary stated that Annexure XIII proposed that some services should attract GST rates as
applicable to goods along with compensation cess (if any) to discourage tax arbitrage. He explained that
instead of buying a car if someone leased a car, then it should attract the same rate of tax as for buying the
car. After discussion, the Council approved the entries in Annexure XIII.

Annexure XIV:
28. The Secretary stated that this Annexure contained 18 entries of services the tax on which was proposed
to be collected on reverse charge basis. The Council approved the same.


Approval of Schedules for classification of Goods and Services

29.1. The Secretary drew attention to paragraph 6 of the agenda notes to agenda item 9 in Volume-3 and
stated that GST rates would generally be prescribed at the 4-digit HS Classification, unless a carve out was
required to specify the rate for a good at 6 or 8-digit levels. He proposed that for GST purposes, the
classification of goods and the Rules for Interpretation thereof as given in the First Schedule to the Customs
Tariff Act, 1975 be relied upon. The Council agreed to this proposal.

29.2. The Secretary drew attention to an Addendum to Agenda Notes circulated by the GST Council
Secretariat on 16 May, 2017 wherein it was mentioned that a new Chapter 99 was proposed to be added to
the First Schedule to the Customs Tariff Act, 1975 which would provide 6-digit classification of services
based on the United Nations Central Product Classification (UN CPC). He stated that the 5-digit
classification of UN CPC (excluding ‘99’) had been adapted to meet the Indian requirements. He informed
that a Committee of officers in CBEC was constituted to recommend a scheme of classification of services
for GST. The Committee had proposed a scheme of classification based on National Product Classification
for Services Sector (NPCSS) developed by NSO, which in turn was based on the UN CPC. He explained
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that NPCSS was based on UN’s 5-digit Central Product Classification (UN-CPC). Broadly, NPCSS
classification followed the following formulation: “99+5 digitized UN-CPC code +1 digit for Indian
requirements”. He stated that NPCSS was essentially a 6-digit expansion of the 5 digit UN-CPC
classification. The codes at 6-digit level had been devised to meet Indian requirements. The classification
Codes and the descriptions under NPCSS at 5-digit level matched with those at the 5-digit level under the
UN-CPC. The difference in the Codes and the descriptions was at the 6-digit level. This ensured that the
NPCSS was compatible with the international UN-CPC at 5-digit level.

29.3. He stated that the classification recommended by the Committee was an improvement over the current
Services Accounting Code (SAC) based classification followed for payment of Service Tax and statistics,
which essentially was a list of taxable services which were covered in the positive list regime. The new
GST system would enable collection of data at a more disaggregated level vis-a-vis the present system of
clubbing all services under 120 odd accounting heads. He proposed that the Council might accept this
classification of services for GST. The Council approved the proposal.

30. For agenda item 9, the Council approved the proposals related to supply of services as presented
in Volume-3 of the detailed agenda notes and the Addendum thereto and another Addendum attached as
Annexure-4 to the Minutes along with the modifications, where relevant, as listed below:-
(i) Annexure VI (List A-1): The Council approved the proposal of the Fitment Committee to continue
under GST, the 54 existing listed exemptions under the service tax, and to also exempt the services provided
by the GSTN to the Central of State Governments/Union Territories for implementation of GST;
(ii) Annexure VI (List A-2): The Council approved the proposal of the Fitment Committee to continue
under GST, the 10 existing listed exemptions under the service tax with certain modifications and with the
following further modifications:
(a) The exemption limit for services by a hotel, inn, guest house, club or campsite shall be room
rent of Rs. 1,000 per day instead of the proposed rate of Rs. 500 per day;
(iii) Annexure VI (List A-3): The Council approved the proposal of the Fitment Committee to withdraw
under GST, the 18 existing listed exemptions under the service tax;
(iv) Annexure VI (List B): The Council approved the proposed review of 13 Service Tax exemptions
which were recommended for withdrawal/modification by the Fitment Committee with the following
further modifications:
(a) To fully exempt tax on renting of rooms in a clinical establishment during the course of
providing healthcare services whereas earlier it was proposed to limit this exemption only for
room charges of less than Rs. 2,000 per day;
(v) Annexure VII: The Council approved the proposal to levy tax at the rate of 5% on the 11 listed services;
(vi) Annexure VIII: The Council approved the proposal to levy tax at the rate of 12% on the 7 listed
services with the following modifications:
(a) restaurants having facility of air-conditioning or central heating at any time during the year
(whether serving liquor or not) to be levied to tax at the rate of 18% and restaurants not having
facility of air-conditioning or central heating at any time during the year and not having license
to serve liquor to be taxed at the rate of 12%, , restaurants not having facility of air-conditioning
or central heating at any time during the year and having license to serve liquor to be taxed at
the rate of 18%;
(vii) Annexure IX: The Council approved the proposal to levy tax at the rate of 18% on the 6 listed services
subject to the modification of rates in respect of renting of hotels and supply of food/drinks in air-
conditioned restaurants recorded under Annexure VI (List A-2) and Annexure VIII respectively;
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(ix) Annexure X: The Council approved the proposal to levy tax at the rate of 28% on the 5 listed services
subject to the following modifications:
(a) services by way of admission or access to circus, Indian classical dance including folk dance,
theatrical performance and drama to be taxed at the rate of 18% and the rest of the entries under
Sl.No.1 of Annexure X to be taxed at the rate of 28%;
(b) hotels with room tariff of Rs. 1,000 and above but less than Rs. 2,500 per room per day to be
taxed at the rate of 12% with full ITC and hotels with room tariff of Rs. 2,500 and above but
less than Rs. 5,000 per room per day to be taxed at the rate of 18% with full ITC;
(x) Annexure XIII: The Council approved the proposal to levy GST and cess (where applicable) on the
listed services at the rates as applicable to goods;
(xi) Annexure XIV: The Council approved the proposal to levy tax on 18 listed services under reverse
charge;
(xii) Schedules for classification of Goods and Services: The Council approved the proposal to adopt the
First Schedule to the Customs Tariff Act, 1975 and the Rules for Interpretation thereof for classification of
Goods under GST and addition of a new Chapter 99 to the First Schedule to the Customs Tariff Act, 1975
providing for a 6-digit classification of Services based on the United Nations Central Product Classification
(UN CPC).

Agenda Item 10: Any other agenda item with the permission of the Chairperson:
31. The Hon’ble Minister from Jammu & Kashmir stated that the Council needed to deliberate on the tax
treatment in respect of trade across the Line of Control (LOC) in his State. The Secretary stated that broadly
the existing regime could be continued but this could be examined and discussed further.

Agenda Item 11: Date of the next meeting of the GST Council:
32.1. The Hon’ble Chairperson observed that it was a very successful two days meeting during which a lot
of ground had been covered. He stated that in the next meeting, the outstanding agenda for fitment of rates
for goods and the GST Rules would be taken up. He also suggested that GSTN should make a presentation
in the next meeting about their preparedness for GST. After discussion, it was agreed that the next meeting
of the Council would be held in New Delhi on 3 June 2017.
32.2. In conclusion, the Hon’ble Chairperson once again profusely thanked the Government of Jammu &
Kashmir for hosting the Council Meeting in Srinagar and for a very warm hospitality. The Hon’ble Minister
of Finance, Jammu & Kashmir, thanked the Hon’ble Chairperson and all the other Members for accepting
the invitation to host the Council Meeting in Srinagar and stated that this Meeting affirmed the
determination of Jammu & Kashmir to fully participate in the national economic process.
33. The meeting ended with a vote of thanks to the Chair.
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Annexure – 1
List of Ministers who attended the 14th GST Council Meeting on 18-19 May 2017
S No State/Centre Name of the Minister Charge
1 Govt. of India Shri Arun Jaitley Finance Minister
2 Govt. of India Shri Santosh Kumar Gangwar Minister of State (Finance)
3 Puducherry Shri V. Narayanasamy Chief Minister
4 Delhi Shri Manish Sisodia Deputy Chief Minister
5 Arunachal Pradesh Shri Chowna Mein Deputy Chief Minister
6 Gujarat Shri Nitinbhai Patel Deputy Chief Minister
7 Manipur Shri Y. Joykumar Singh Deputy Chief Minister
8 Andhra Pradesh Shri Yanamala Ramakrishnudu Finance Minister
9 Assam Dr. Himanta Biswa Sarma Finance Minister
10 Bihar Shri Bijendra Prasad Yadav Finance Minister
11 Chhattisgarh Shri Amar Agrawal Minister, Commercial Taxes
12 Goa Shri Mauvin Godinho Minister for Panchayat
13 Haryana Captain Abhimanyu Minister, Excise & Taxation
14 Jammu & Kashmir Dr. Haseeb Drabu Finance Minister
15 Jharkhand Shri C. P Singh
Minister, Urban Development, Housing &
Transport
16 Karnataka Shri Krishna Byregowda Minister, Agriculture
17 Kerala Dr. Thomas Isaac Finance Minister
18 Madhya Pradesh Shri Jayant Malaiya Finance Minister
19 Maharashtra Shri Sudhir Mungantiwar Finance Minister
20 Meghalaya Shri Zenith Sangma Minister, Taxation
21 Punjab Shri Manpreet Singh Badal Finance Minister
22 Rajasthan Shri Rajpal Singh Shekhawat Finance Minister
23 Tamil Nadu Shri D. Jayakumar
Minister (Fisheries, Finance & Administrative
Reforms)
24 Telangana Shri Etela Rajender Finance Minister
25 Uttar Pradesh Shri Rajesh Agrawal Finance Minister
26 Uttarakhand Shri Prakash Pant Finance Minister
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Annexure – 2
List of Officials who attended the 14th GST Council Meeting on 18-19 May 2017
S No State/Centre Name of the Officer Charge
1 Govt. of India Dr. Hasmukh Adhia Revenue Secretary
2 Govt. of India Ms. Vanaja N. Sarna Chairman, CBEC
3 Govt. of India Dr. Arvind Subramanian Chief Economic Adviser
4 Govt. of India Shri Mahender Singh Member (GST), CBEC
5 Govt. of India Shri R.K. Mahajan Member (Budget), CBEC
6 Govt. of India Shri P.K. Jain Chief Commissioner, (AR), CESTAT, CBEC
7 Govt. of India Shri B.N. Sharma Additional Secretary, Dept. of Revenue
8 Govt. of India Shri P.K. Mohanty Advisor (GST), CBEC
9 Govt. of India Shri Alok Shukla Joint Secretary (TRU), Dept. of Revenue
10 Govt. of India Ms. Hemambika R. Priya Commissioner (Coordination), CBEC
11 Govt. of India Shri Simanchala Dash PS to FM
12 Govt. of India Shri B.B. Mohapatra ADG Systems, DG Systems
13 Govt. of India Shri Upender Gupta Commissioner (GST), CBEC
14 Govt. of India Shri Udai Singh Kumawat Joint Secretary, Dept. of Revenue
15 Govt. of India Shri Amitabh Kumar Joint Secretary (TRU), Dept. of Revenue
16 Govt. of India Shri G.D. Lohani Commissioner, CBEC
17 Govt. of India Shri D.S.Malik ADG, Press, Ministry of Finance
18 Govt. of India Shri Hemant Jain OSD to MoS (Finance)
19 Govt. of India Shri G.G. Pai Director, TRU
20 Govt. of India Shri Reyaz Ahmed Director, TRU
21 Govt. of India Shri Somesh Chander Director, TRU
22 Govt. of India Ms. Aarti Saxena Deputy Secretary, Dept. of Revenue
23 Govt. of India Shri Promod Kumar OSD, TRU
24 Govt. of India Shri Paras Sankhla OSD to FM
25 Govt. of India Shri Siddharth Jain Assistant Commissioner, GST Policy
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S No State/Centre Name of the Officer Charge
26 GST Council Shri Arun Goyal Additional Secretary
27 GST Council Shri Shashank Priya Commissioner
28 GST Council Shri G.S. Sinha Joint Commissioner
29 GST Council Shri Kaushik TG Assistant Commissioner
30 GST Council Shri Shekhar Khansili Superintendent
31 GST Council Shri Amit Soni Inspector
32 GSTN Shri Navin Kumar Chairman
33 GSTN Shri Prakash Kumar CEO
34 Andhra Pradesh Shri J. Syamala Rao Commissioner, Commercial Taxes
35 Andhra Pradesh Shri T. Ramesh Babu Additional Commissioner, Commercial Taxes
36 Arunachal Pradesh Shri Marnya Ete Commissioner, Commercial Taxes
37 Arunachal Pradesh Shri Tapas Dutta Assistant Commissioner
38 Assam Shri Anurag Goel Commissioner, Commercial Taxes
39 Bihar Ms. Sujata Chaturvedi Commissioner, Commercial Taxes
40 Bihar Shri Arun Kumar Mishra Additional Secretary, Commercial Taxes
41 Chhattisgarh Shri Amitabh Jain Principal Secretary (Finance)
42 Chhattisgarh Ms. Sangeetha P Commissioner, Commercial Taxes
43 Delhi Shri S. N. Sahai Principal Secretary, Finance
44 Delhi Shri Anand Kumar Tiwari Additional Commissioner
45 Goa Shri Dipak Bandekar Commissioner, Commercial Taxes
46 Gujarat Dr. P.D. Vaghela Commissioner, Commercial Taxes
47 Gujarat Ms. Mona Khandhar Secretary, Economic Affairs
48 Haryana Shri Sanjeev Kaushal Additional Chief Secretary
49 Haryana Shri Shyamal Misra Commissioner, Excise & Taxation
50 Haryana Shri Rajeev Chaudhary Deputy Commissioner, Excise & Taxation
51 Himachal Pradesh Shri Onkar Chand Principal Secretary, Excise & Taxation
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S No State/Centre Name of the Officer Charge
52 Himachal Pradesh Shri Pushpendra Rajput Commissioner, Excise & Taxation
53 Himachal Pradesh Shri Sanjay Bhardwaj Additional Commissioner, Commercial Taxes
54 Jammu & Kashmir Shri Navin K. Choudhary Secretary, Finance
55 Jammu & Kashmir Shri P.I. Khateeb Commissioner, Commercial Taxes
56 Jammu & Kashmir Ms. Anu Malhotra Additional Commissioner, Commercial Taxes
57 Jammu & Kashmir Dr. Shamim Ahmed Wani Additional Commissioner, Commercial Taxes
58 Jammu & Kashmir Shri P.K. Bhat Additional Commissioner, Commercial Taxes
59 Jharkhand Shri Sanjay Kumar Prasad Joint Commissioner, Commercial Taxes
60 Jharkhand Shri G.S. Kapardar Asst. Commissioner, Commercial Taxes
61 Karnataka Dr. M.P. Raviprasad Joint Commissioner, Commercial Taxes
62 Kerala Dr. Rajan Khobragade Commissioner, Commercial Taxes
63 Madhya Pradesh Shri Raghwendra Kumar Singh Commissioner, Commercial Taxes
64 Madhya Pradesh Shri Sudip Gupta Deputy Commissioner, Commercial Taxes
65 Maharashtra Shri Dhananjay Akhade Joint Commissioner
66 Manipur Shri R.K. Khurkishor Singh Assistant Commissioner
67 Meghalaya Shri Leonardo Khongsit Assistant Commissioner
68 Nagaland Shri Y. Mhathung Murry Additional Commissioner, Commercial Taxes
69 Nagaland Shri Wochamo Udyuo Additional Commissioner, Commercial Taxes
70 Odisha Shri Ashok Meena Special Secretary (Finance)
71 Odisha Shri Sahadev Sahu Joint Commissioner, Commercial Taxes
72 Puducherry Dr. V. Candavelou Secretary, Finance & Commercial Taxes
73 Puducherry Shri G. Srinivas Commissioner, Commercial Taxes
74 Punjab Shri V.K. Garg Advisor (GST), Govt. of Punjab
75 Punjab Shri V.P. Singh Commissioner, Excise & Taxation
76 Punjab Shri Pawan Garg Deputy Commissioner, Commercial Taxes
77 Rajasthan Shri Prem Singh Mehra Principal Secretary, Finance
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S No State/Centre Name of the Officer Charge
78 Rajasthan Shri Praveen Gupta Secretary, Finance
79 Rajasthan Shri Alok Gupta Commissioner, Commercial Taxes
80 Sikkim Shri Manoj Rai Joint Commissioner, Commercial Taxes
81 Tamil Nadu Dr. C. Chandramouli Additional Chief Secretary
82 Tamil Nadu Shri K. Gnanasekaran Additional Commissioner, Commercial Taxes
83 Telangana Shri Somesh Kumar Principal Secretary (Revenue)
84 Telangana Shri Anil Kumar Commissioner, Commercial Taxes
85 Telangana Shri Kaashi Vishweshwar Rao Deputy Commissioner, Commercial Taxes
86 Tripura Ms. Brahmneet Kaur Commissioner, Commercial Taxes
87 Uttarakhand Shri Piyush Kumar Additional Commissioner, Commercial Taxes
88 Uttarakhand Shri Vipin Kumar Additional Commissioner, Commercial Taxes
89 Uttar Pradesh Shri R.K. Tiwari Additional Chief Secretary
90 Uttar Pradesh Shri Mukesh Kumar Meshram Commissioner, Commercial Taxes
91 Uttar Pradesh Shri Vivek Kumar Additional Commissioner
92 West Bengal Ms. Smaraki Mahapatra Commissioner, Commercial Taxes
93 West Bengal Shri Khalid Anwar Sr. Joint Commissioner, Commercial Taxes


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Annexure – 3
Presentation on GST Rules
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Annexure – 4
ADDENDUM DATED 18.05.2017 TO THE GST RATE SCHEDULE FOR GOODS
CIRCULATED ON 14.05.2017
[As per discussions in the Fitment Committee]
A. Amendments in the Detailed Horizontal Rate Sheets circulated to CCTs on 14.05.2017:
The following amendments / additions are proposed to be made to the aforesaid document:
1. Prasadam [2106] supplied by religious places like temples, mosques, churches, gurudwaras,
dargahs, etc. presently recommended to be at 5% (as sweetmeats) / 18% (as other edible
preparations) may be kept at Nil.
2. Granite slabs [2516], presently recommended to be at 12% may be kept at 28%, the rate
recommended for marble and travertine, in slabs [2515 12 20, 2515 12 90].
3. Sandstone, other monumental or building stone [2516] to be excluded from 12% List, as these stones
are recommended to be at 5%.
4. All types of contraceptives [Chapter 30] presently recommended to be at 5% may be kept at Nil,
the rate recommended for condoms [Chapter 40].
5. Soaps manufactured by KVIC [3401] presently recommended to be at Nil may be kept at 18%,
which is the general rate applicable to soaps.
6. Mats, mattings, screens, basket works, wickerwork and other articles of vegetable materials
bamboo, rattan or other vegetable materials [4601, 4602] {Plaits and similar products of plaiting
materials, whether or not assembled into strips; plaiting materials, plaits and similar products of
plaiting materials, bound together in parallel strands or woven, in sheet form, whether or not being
finished articles (for example, mats, matting, screens) of vegetables materials such as of bamboo,
of rattan, of other vegetable materials [4601] and Basketwork, wickerwork and other articles, made
directly to shape from plaiting materials or made up from goods of heading 4601; articles of loofah
[4602]} presently recommended to be at 18% may be kept at 12%.
7. Fly ash bricks [Ch. 68] presently recommended to be at 18% may be kept at 12%, along with sand
lime bricks.
8. Indigenous handmade musical instruments [Ch. 92] presently recommended to be at 12% may be
kept at Nil.
9. Branded broomsticks, phool bahari jhadoo (9603 10 00) presently recommended to be at 18% may
also be kept at 5% the rate recommended for unbranded broomsticks, phool bahari jhadoo.

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B. Addendum to Annexure-VI (List A1) (Existing service tax exemptions to continue in GST):


60. Services provided by cord blood banks by way of preservation
of stem cells or any other service in relation to such
preservation;
Exemption may be
continued.
61 Services by way of training or coaching in recreational
activities relating to, -
(i) arts or culture. or
(ii) sports by charitable entities registered under section
12AA of Income tax Act, 1961;
Exemption may be
continued.
62 Any services provided by, _
(i) the National Skill Development Corporation set up by the
Government of India;
(ii) a Sector Skill Council approved by the National Skill
Development Corporation;
(iii) an assessment agency approved by the Sector Skill
Council or the National Skill Development Corporation;
(iv) a training partner approved by the National Skill
Development Corporation or the Sector Skill Council
in relation to
(a) the National Skill Development Programme
implemented by the National Skill Development
Corporation; or
(b) a vocational skill development course under the National
Skill Certification and Monetary Reward Scheme; or
(c) any other Scheme implemented by the National Skill
Development Corporation.”
Exemption may be
continued.
63 Services of assessing bodies empanelled centrally by
Directorate General of Training, Ministry of Skill
Development and Entrepreneurship by way of
assessments under Skill Development Initiative (SDI)
Scheme
Exemption may be
continued
Services provided by training providers (Project
implementation agencies) under Deen Dayal Upadhyaya
Grameen Kaushalya Yojana under the Ministry of Rural
Development by way of offering skill or vocational
training courses certified by National Council For
Vocational Training.
Exemption may be
continued
64. Services by way of sponsorship of sporting events organised, -
(a) by a national sports federation, or its affiliated federations,
where the participating teams or individuals represent any
district, State, zone or Country;
(b) by Association of Indian Universities, Inter-University
Sports Board, School Games Federation of India, All India
Exemption may be
continued
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Sports Council for the Deaf, Paralympic Committee of
India or Special Olympics Bharat;
(c) by Central Civil Services Cultural and Sports Board;
(d) as part of national games, by Indian Olympic Association;
or
(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYK
KA) Scheme;
65. Services provided by way of construction, erection,
commissioning, installation, completion, fitting out, repair,
maintenance, renovation, or alteration of, -
(bb) a civil structure or any other original works pertaining to
the Beneficiary-led individual house construction /
enhancement under the Housing for All (Urban)
Mission/Pradhan Mantri Awas Yojana;

Exemption at (bb) may be
continued in respect of
pure labour contracts.
66. Services by way of construction, erection, commissioning, or
installation of original works pertaining to,-
(b) a single residential unit otherwise than as a part of a
residential complex;

Exemption at (bb) may be
continued in respect of
pure labour contracts.
67. Services of general insurance business provided under
following schemes -
(a) Hut Insurance Scheme;
(b) Cattle Insurance
under Swarnajaynti Gram Swarozgar Yojna (earlier known as
Integrated Rural Development Programme);
(c) Scheme for Insurance of Tribals;
(d) Janata Personal Accident Policy and Gramin Accident
Policy;
(e) Group Personal Accident Policy for Self-Employed
Women;
(f) Agricultural Pumpset and Failed Well Insurance;
(g) Premia collected on export credit insurance;
(h) Weather Based Crop Insurance Scheme or the Modified
National Agricultural Insurance Scheme, approved by the
Government of India and implemented by the Ministry of
Agriculture;
(i) Jan Arogya Bima Policy;
(j) National Agricultural Insurance Scheme
(Rashtriya Krishi Bima Yojana);
(k) Pilot Scheme on Seed Crop Insurance;
(l) Central Sector Scheme on Cattle Insurance;
(m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana; or
(o) Coconut Palm Insurance Scheme;
(p) Pradhan Mantri Suraksha BimaYojna;
Exemption may be
continued and its present
scope expanded to include
State insurance schemes.
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(q) Niramaya Health Insurance Scheme implemented by Trust
constituted under the provisions of the National Trust for the
Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
(r) Any other insurance scheme of the State Government as may
be notified by Government of India on the recommendation of
GSTC
68. Services of life insurance business provided under following
schemes -
(a) Janashree Bima Yojana (JBY); or
(b) Aam Aadmi Bima Yojana (AABY);
(c) Life micro-insurance product as approved by the Insurance
Regulatory and Development Authority, having maximum
amount of cover of fifty thousand rupees;
(d) Varishtha Pension BimaYojana;
(e) Pradhan Mantri Jeevan JyotiBimaYojana;
(f) Pradhan Mantri Jan DhanYogana;
(g) Pradhan Mantri Vaya Vandan Yojana
(h) Any other insurance scheme of the State Government as may
be notified by Government of India on the recommendation
of GSTC
Exemption may be
continued.
69 Services by way of collection of contribution under Atal
Pension Yojana (APY).
Exemption may be
continued.
70 Services by way of collection of contribution under any scheme
of the State Governments


*****

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Agenda Item 3: Approval of amendments to the draft GST Rules and related Forms
RETURNS
1. Form and manner of furnishing details of outward supplies
(1) Every registered person (other than a person referred to in section 14 of the Integrated Goods and
Services Tax Act) required to furnish the details of outward supplies of goods or services or both under
section 37, shall furnish such details in FORM GSTR-1 electronically through the Common Portal, either
directly or through a Facilitation Centre notified by the Commissioner.
(2) The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall
include, inter alia, –
(a) invoice wise details of all -
(i) inter-State and intra-State supplies made to registered persons; and
(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to
unregistered persons;
(b) consolidated details of all -
(i) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State wise inter-State supplies with invoice value less than upto two and a half lakh
rupees made to unregistered persons for each rate of tax;
(c) debit and credit notes, if any, issued during the month for invoices issued previously.

(3) The details of outward supplies furnished by the supplier shall be made available electronically to
the concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in
FORM GSTR-6A through the Common Portal after the due date of filing of FORM GSTR-1.
(4) The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2
under section 38 or FORM GSTR-4 or FORM GSTR-6 under section 39 shall be made available to the
supplier electronically in FORM GSTR-1A through the Common Portal and such supplier may either
accept or reject the modifications made by the recipient and FORM GSTR-1 furnished earlier by the
supplier shall stand amended to the extent of modifications accepted by him.
2. Form and manner of furnishing details of inward supplies
(1) Every registered person (other than a person referred to in section 14 of the Integrated Goods and
Services Tax Act) required to furnish the details of inward supplies of goods or services or both received
during a tax period under sub-section (2) of section 38 shall, on the basis of details contained in Part A,
Part Band Part C of FORM GSTR-2A, prepare such details as specified in sub-section (1) of the said
section and furnish the same in FORM GSTR-2 electronically through the Common Portal, either directly
or from a Facilitation Centre notified by the Commissioner, after including therein details of such other
inward supplies, if any, required to be furnished under sub-section (2) of section 38.
(2) Every registered person shall furnish the details, if any, required under sub-section (5) of section 38
electronically in FORM GSTR-2.
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(3) The registered person shall specify the inward supplies in respect of which he is not eligible, either
fully or partially, for input tax credit in FORM GSTR-2 where such eligibility can be determined at the
invoice level.
(4) The registered person shall declare the quantum of ineligible input tax credit on inward supplies
which is relatable to non-taxable supplies or for purposes other than business and cannot be determined at
the invoice level in FORM GSTR-2.
(4A) The details of invoices furnished by an non-resident taxable person in his return in FORM GSTR-
5 under rule 5 shall be made available to the recipient of credit in Part A of FORM GSTR 2A electronically
through the Common Portal and the said recipient may include the same in FORM GSTR-2.
(5) The details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6
under rule 7 shall be made available to the recipient of credit in Part B of FORM GSTR 2A electronically
through the Common Portal and the said recipient may include the same in FORM GSTR-2.
(6) The details of tax deducted at source furnished by the deductor under sub-section (3) of section 39
in FORM GSTR-7 shall be made available to the deductee in Part C of FORM GSTR-2A electronically
through the Common Portal and the said deductee may include the same in FORM GSTR-2.
(7) The details of tax collected at source furnished by an e-commerce operator under section 52 in
FORM GSTR-8 shall be made available to the concerned person in Part C of FORM GSTR 2A
electronically through the Common Portal and such person may include the same in FORM GSTR-2.
(8) The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall
include, inter alia, -
(a) invoice wise details of all inter-State and intra-State supplies received from registered
persons or unregistered persons;
(b) import of goods and services made; and
(c) debit and credit notes, if any, received from supplier.
3. Form and manner of submission of monthly return
(1) Every registered person other than a person referred to in section 14 of the Integrated Goods and
Services Tax Act or an Input Service Distributor or a non-resident taxable person or a person paying tax
under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return specified under
sub-section (1) of section 39 in FORM GSTR-3 electronically through the Common Portal either directly
or through a Facilitation Centre notified by the Commissioner.
(2) Part A of the return under sub-rule (1) shall be electronically generated on the basis of information
furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax
periods.
(3) Every registered person furnishing the return under sub-rule (1) shall, subject to the provisions of
section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the
Act or these rules by debiting the electronic cash ledger or electronic credit ledger and include the details
in Part B of the return in FORM GSTR-3.
(4) A registered person, claiming refund of any balance in the electronic cash ledger in accordance with
the provisions of sub-section (6) of section 49, may claim such refund in Part B of the return in FORM
GSTR-3 and such return shall be deemed to be an application filed under section 54.
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(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM
GSTR-2 under section 38 has been extended and the circumstances so warrant, return in FORM GSTR-
3B, in lieu of FORM GSTR-3, may be furnished in such manner as may be notified by the Commissioner.

4. Form and manner of submission of quarterly return by the composition supplier
(1) Every registered person paying tax under section 10 shall, on the basis of details contained in
FORM GSTR-4A, and where required, after adding, correcting or deleting the details, furnish the quarterly
return in FORM GSTR-4 electronically through the Common Portal, either directly or through a
Facilitation Centre notified by the Commissioner.
(2) Every registered person furnishing the return under sub-rule (1) shall discharge his liability towards
tax, interest, penalty, fees or any other amount payable under the Act or these rules by debiting the electronic
cash ledger.
(3) The return furnished under sub-rule (1) shall include, inter alia,-
(a) invoice wise inter-State and intra-State inward supplies received from registered and un-
registered persons; and
(b) consolidated details of outward supplies made.
(4) A registered person who has opted to pay tax under section 10 from the beginning of a financial year
shall, where required, furnish the details of outward and inward supplies and return under rule 1, rule 2 and
rule 3 relating to the period during which the person was liable to furnish such details and returns till the
due date of furnishing the return for the month of September of the succeeding financial year or furnishing
of annual return of the preceding financial year, whichever is earlier.
Explanation. – The person shall not be eligible to avail of input tax credit on receipt of invoices or debit
notes from the supplier for the period prior to his opting for the composition scheme.
(5) A registered person opting to withdraw from the composition scheme at his own motion or where option
is withdrawn at the instance of the proper officer shall, where required, furnish the details relating to the
period prior to his opting for payment of tax under section 9 in FORM GSTR- 4 till the due date of
furnishing the return for the quarter ending September of the succeeding financial year or furnishing of
annual return of the preceding financial year, whichever is earlier.
5. Form and manner of submission of return by non-resident taxable person
Every registered non-resident taxable person shall furnish a return in FORM GSTR-5 electronically
through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner,
including therein the details of outward supplies and inward supplies and shall pay the tax, interest, penalty,
fees or any other amount payable under the Act or these rules within twenty days after the end of a tax
period or within seven days after the last day of the validity period of registration, whichever is earlier.
5A. Form and manner of submission of return by persons providing online information and database
access or retrieval services
Every registered person providing online information and data base access or retrieval services from a place
outside India to a person in India other than a registered person shall file return in FORM GSTR-5A on or
before the twentieth day of the month succeeding the calendar month or part thereof.
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6. Form and manner of submission of return by an Input Service Distributor
Every Input Service Distributor shall, on the basis of details contained in FORM GSTR-6A, and where
required, after adding, correcting or deleting the details, furnish electronically the return in FORM GSTR-
6, containing the details of tax invoices on which credit has been received and those issued under section
20, through the Common Portal either directly or from a Facilitation Centre notified by the Commissioner.
7. Form and manner of submission of return by a person required to deduct tax at source
(1) Every registered person required to deduct tax at source under section 51 shall furnish a return in
FORM GSTR-7 electronically through the Common Portal either directly or from a Facilitation Centre
notified by the Commissioner.
(2) The details furnished by the deductor under sub-rule (1) shall be made available electronically to
each of the suppliers in Part C of FORM GSTR-2A and FORM-GSTR-4A on the Common Portal after
the due date of filing of FORM GSTR-7.
(3) The certificate referred to in sub-section (3) of section 51 shall be made available electronically to
the deductee on the Common Portal in FORM GSTR-7A on the basis of the return furnished under sub-
rule (1).
8. Form and manner of submission of statement of supplies through an e-commerce operator
(1) Every electronic commerce operator required to collect tax at source under section 52 shall furnish
a statement in FORM GSTR-8 electronically on the Common Portal, either directly or from a Facilitation
Centre notified by the Commissioner, containing details of supplies effected through such operator and the
amount of tax collected as required under sub-section (1) of section 52.
(2) The details furnished by the operator under sub-rule (1) shall be made available electronically to
each of the suppliers in Part C of FORM GSTR-2Aon the Common Portal after the due date of filing of
FORM GSTR-8.
9. Notice to non-filers of returns
A notice in FORM GSTR-3A shall be issued, electronically, to a registered person who fails to furnish
return under section 39 or section 44 or section 45 or section 52.
10. Matching of claim of input tax credit
The following details relating to the claim of input tax credit on inward supplies including imports,
provisionally allowed under section 41, shall be matched under section 42 after the due date for furnishing
the return in FORM GSTR-3
(a) GSTIN of the supplier;
(b) GSTIN of the recipient;
(c) invoice or debit note number;
(d) invoice or debit note date; and
(e) tax amount:
Provided that where the time limit for furnishing FORM GSTR-1 specified under section 37 and FORM
GSTR-2 specified under section 38 has been extended, the date of matching relating to claim of input tax
credit shall also be extended accordingly:
Provided further that the Commissioner may, on the recommendations of the Council, by order, extend the
date of matching relating to claim of input tax credit to such date as may be specified therein.
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Explanation 1.- The claim of input tax credit in respect of invoices and debit notes in FORM GSTR-2 that
were accepted by the recipient on the basis of FORM GSTR-2A without amendment shall be treated as
matched if the corresponding supplier has furnished a valid return.
Explanation 2. - The claim of input tax credit shall be considered as matched where the amount of input
tax credit claimed is equal to or less than the output tax paid on such tax invoice or debit note by the
corresponding supplier.
11. Final acceptance of input tax credit and communication thereof
(1) The final acceptance of claim of input tax credit in respect of any tax period, specified in sub-section
(2) of section 42, shall be made available electronically to the registered person making such claim in
FORM GST MIS-1 through the Common Portal.
(2) The claim of input tax credit in respect of any tax period which had been communicated as
mismatched but is found to be matched after rectification by the supplier or recipient shall be finally
accepted and made available electronically to the person making such claim in FORM GST MIS-1 through
the Common Portal.
12. Communication and rectification of discrepancy in claim of input tax credit and reversal of
claim of input tax credit
(1) Any discrepancy in the claim of input tax credit in respect of any tax period, specified in sub-section
(3) of section 42 and the details of output tax liable to be added under sub-section (5) of the said section on
account of continuation of such discrepancy, shall be made available to the recipient making such claim
electronically in FORM GST MIS-1 and to the supplier electronically in FORM GST MIS-2 through the
Common Portal on or before the last date of the month in which the matching has been carried out.
(2) A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy
is made available.
(3) A recipient to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement of inward supplies to be furnished for the month in which the discrepancy is
made available.
(4) Where the discrepancy is not rectified under sub-rule (2) or sub-rule (3), an amount to the extent of
discrepancy shall be added to the output tax liability of the recipient in his return to be furnished in FORM
GSTR-3 for the month succeeding the month in which the discrepancy is made available.
Explanation 1.- Rectification by a supplier means adding or correcting the details of an outward supply in
his valid return so as to match the details of corresponding inward supply declared by the recipient.
Explanation 2.- Rectification by the recipient means deleting or correcting the details of an inward supply
so as to match the details of corresponding outward supply declared by the supplier.
13. Claim of input tax credit on the same invoice more than once
Duplication of claims of input tax credit in the details of inward supplies shall be communicated to the
registered person in FORM GST MIS-1 electronically through the Common Portal.
14. Matching of claim of reduction in the output tax liability
The following details relating to the claim of reduction in output tax liability shall be matched under section
43 after the due date for furnishing the return in FORM GSTR-3:-
(a) GSTIN of the supplier;
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(b) GSTIN of the recipient;
(c) credit note number;
(d) credit note date; and
(e) tax amount:
Provided that where the time limit for furnishing FORM GSTR-1 under section 37 and FORM GSTR-2
under section 38 has been extended, the date of matching of claim of reduction in the output tax liability
shall be extended accordingly:
Provided further that the Commissioner may, on the recommendations of the Council, by order, extend the
date of matching relating to claim of reduction in output tax liability to such date as may be specified
therein.
Explanation 1. – The claim of reduction in output tax liability due to issuance of credit notes in FORM
GSTR-1 that were accepted by the corresponding recipient in FORM GSTR-2 without amendment shall
be treated as matched if the said recipient has furnished a valid return.

Explanation 2. — The claim of reduction in the output tax liability shall be considered as matched where
the amount of output tax liability after taking into account the reduction claimed is equal to or more than
the claim of input tax credit after taking into account the reduction admitted and discharged on such credit
note by the corresponding recipient in his valid return.

15. Final acceptance of reduction in output tax liability and communication thereof
(1) The final acceptance of claim of reduction in output tax liability in respect of any tax period,
specified in sub-section (2) of section 43, shall be made available electronically to the person making such
claim in FORM GST MIS-1 through the Common Portal.
(2) The claim of reduction in output tax liability in respect of any tax period which had been
communicated as mis-matched but is found to be matched after rectification by the supplier or recipient
shall be finally accepted and made available electronically to the person making such claim in FORM GST
MIS-1 through the Common Portal.
16. Communication and rectification of discrepancy in reduction in output tax liability and
reversal of claim of reduction
(1) Any discrepancy in claim of reduction in output tax liability, specified in sub-section (3) of section
43, and the details of output tax liability to be added under sub-section (5) of the said section on account of
continuation of such discrepancy, shall be made available to the registered person making such claim
electronically in FORM GST MIS- 1 and the recipient electronically in FORM GST MIS-2 through the
Common Portal on or before the last date of the month in which the matching has been carried out.
(2) A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy
is made available.
(3) A recipient to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement of inward supplies to be furnished for the month in which the discrepancy is
made available.
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(4) Where the discrepancy is not rectified under sub-rule (2) or sub-rule (3), an amount to the extent of
discrepancy shall be added to the output tax liability of the supplier and debited to the electronic liability
register and also shown in his return in FORM GSTR-3 for the month succeeding the month in which the
discrepancy is made available.
Explanation 1.- Rectification by a supplier means deleting or correcting the details of an outward supply in
his valid return so as to match the details of corresponding inward supply declared by the recipient.
Explanation 2.- Rectification by the recipient means adding or correcting the details of an inward supply
so as to match the details of corresponding outward supply declared by the supplier.
17. Claim of reduction in output tax liability more than once
Duplication of claims for reduction in output tax liability in the details of outward supplies shall be
communicated to the registered person in FORM GST MIS-1 electronically through the Common Portal.
18. Refund of interest paid on reclaim of reversals
The interest to be refunded under sub-section (9) of section 42 or sub-section (9) of section 43 shall be
claimed by the registered person in his return in FORM GSTR-3 and shall be credited to his electronic
cash ledger in FORM GST PMT-05 and the amount credited shall be available for payment of any future
liability towards interest or the taxable person may claim refund of the amount under section 54.
19. Matching of details furnished by the e-Commerce operator with the details furnished by the
supplier
The following details relating to the supplies made through an e-Commerce operator, as declared in FORM
GSTR-8, shall be matched with the corresponding details declared by the supplier in FORM GSTR-1-
(a) State of place of supply; and
(b) net taxable value:

Provided that where the time limit for furnishing FORM GSTR-1 under section 37 has been
extended, the date of matching of the above mentioned details shall be extended accordingly.
Provided further that the Commissioner may, on the recommendations of the Council, by order, extend the
date of matching to such date as may be specified therein.

20. Communication and rectification of discrepancy in details furnished by the e-commerce
operator and the supplier
(1) Any discrepancy in the details furnished by the operator and those declared by the supplier shall be
made available to the supplier electronically in FORM GST MIS-3 and to the e-commerce operator
electronically in FORM GST MIS–4 on the Common Portal on or before the last date of the month in
which the matching has been carried out.
(2) A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy
is made available.
(3) An operator to whom any discrepancy is made available under sub-rule (1) may make suitable
rectifications in the statement to be furnished for the month in which the discrepancy is made available.
(4) Where the discrepancy is not rectified under sub-rule (2) or sub-rule (3), an amount to the extent of
discrepancy shall be added to the output tax liability of the supplier in his return in FORM GSTR-3 for the
month succeeding the month in which the details of discrepancy are made available and such addition to
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the output tax liability and interest payable thereon shall be made available to the supplier electronically on
the Common Portal in FORM GST MIS–3.
21. Annual return
(1) Every registered person, other than an Input Service Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return
as specified under sub-section (1) of section 44 electronically in FORM GSTR-9 through the Common
Portal either directly or through a Facilitation Centre notified by the Commissioner:
Provided that a person paying tax under section 10 shall furnish the annual return in FORM GSTR-
9A.
(2) Every electronic commerce operator required to collect tax at source under section 52 shall furnish
annual statement referred to in sub-section (5) of the said section in FORM GSTR -9B.

(3) Every registered person whose aggregate turnover during a financial year exceeds two crore rupees
shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy
of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C,
electronically through the Common Portal either directly or through a Facilitation Centre notified by the
Commissioner.
22. Final return
Every registered person required to furnish a final return under section 45, shall furnish such return
electronically in FORM GSTR-10 through the Common Portal either directly or through a Facilitation
Centre notified by the Commissioner.
23. Details of inward supplies of persons having Unique Identity Number
(1) Every person who has been issued a Unique Identity Number and claims refund of the taxes paid
on his inward supplies, shall furnish the details of such supplies of taxable goods or services or both
electronically in FORM GSTR-11, along with application for such refund claim, through the common
portal either directly or through a Facilitation Centre notified by the Commissioner.
(2) Every person who has been issued a Unique Identity Number for purposes other than refund of the
taxes paid shall furnish the details of inward supplies of taxable goods or services or both as may be required
by the proper officer in FORM GSTR-11.
24. Provisions relating to a goods and services tax practitioner
(1) An application in FORM GST PCT-01 may be made electronically through the Common Portal either
directly or through a Facilitation Centre notified by the Commissioner for enrolment as goods and services
tax practitioner by any person who:
(a) (i) is a citizen of India;
(ii) is a person of sound mind;
(iii) is not adjudicated as insolvent;
(iv) has not been convicted by a competent court,-
and satisfies any of the following conditions: -
(b) that he is a retired officer of the Commercial Tax Department of any State Government or of the
Central Board of Excise and Customs, Department of Revenue, Government of India, who, during
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 71 of 147
his service under the Government, had worked in a post not lower in rank than that of a Group-B
gazetted officer for a period of not less than two years; or
(c) he has passed:
(i) a graduate or postgraduate degree or its equivalent examination having a degree in
Commerce, Law, Banking including Higher Auditing, or Business Administration or
Business Management from any Indian University established by any law for the time being
in force; or
(ii) a degree examination of any Foreign University recognized by any Indian University
as equivalent to the degree examination mentioned in sub-clause (i); or
(iii) any other examination notified by the Government, on the recommendation of the
Council, for this purpose; or
(iv) has also passed any of the following examinations, namely.-
(a) final examination of the Institute of Chartered Accountants of India; or
(b) final examination of the Institute of Cost Accountants of India; or
(c) final examination of the Institute of Company Secretaries of India.

(2) On receipt of the application referred to in sub-rule (1), the officer authorised in this behalf shall,
after making such enquiry as he considers necessary, either enrol the applicant as a goods and services tax
practitioner and issue a certificate to that effect in FORM GST PCT-02 or reject his application where it
is found that the applicant is not qualified to be enrolled as a goods and services tax practitioner.
(3) The enrolment made under sub-rule (2) shall be valid until it is cancelled:
Provided that no person enrolled as a goods and services tax practioner shall be eligible to remain enrolled
unless he passes such examination conducted at such periods and by such authority as may be notified by
the Commissioner on the recommendations of the Council.
(4) If any goods and services tax practitioner is found guilty of misconduct in connection with any
proceedings under the Act, the authorised officer may, after giving him a notice to show cause in FORM
GST PCT-03 for such misconduct and after giving him a reasonable opportunity of being heard, by order
in FORM GST PCT -04 direct that he shall henceforth be disqualified under section 48 to function as a
goods and services tax practitioner.
(5) Any person against whom an order under sub-rule (4) is made may, within thirty days from the date
of issue of such order, appeal to the Commissioner against such order.
(6) Any registered person may, at his option, authorise a goods and services tax practitioner on the
Common Portal in FORM GST PCT-05 or, at any time, withdraw such authorisation in FORM GST
PCT-05 and the goods and services tax practitioner so authorised shall be allowed to undertake such tasks
as indicated in the said authorization during the period of authorisation.
(7) Where a statement required to be furnished by a registered person has been furnished by the goods
and services tax practitioner authorised by him, a confirmation shall be sought from the registered person
over email or SMS and the statement furnished by the goods and services tax practitioner shall be made
available to the registered person on the Common Portal:
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 72 of 147
Provided that where the registered person fails to respond to the request for confirmation till the last
date of furnishing of such statement, it shall be deemed that he has confirmed the statement furnished by
the goods and services tax practitioner.
(8) A goods and services tax practitioner can undertake any or all of the following activities on behalf
of a registered person, if so authorised by him to:
(a) furnish the details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund; and
(e) file an application for amendment or cancellation of registration:
Provided that where any application relating to a claim for refund or an application for amendment or
cancellation of registration has been submitted by the goods and services tax practitioner authorised by the
registered person, a confirmation shall be sought from the registered person and the application submitted
by the said practitioner shall be made available to the registered person on the Common Portal and such
application shall not be proceeded with further until the registered person gives his consent to the same.(9)
Any registered person opting to furnish his return through a goods and services tax practitioner
shall-
(a) give his consent in FORM GST PCT-05 to any goods and services tax practitioner to
prepare and furnish his return; and
(b) before confirming submission of any statement prepared by the goods and services tax
practitioner, ensure that the facts mentioned in the return are true and correct.
(10) The goods and services tax practitioner shall-
(a) prepare the statements with due diligence; and
(b) affix his digital signature on the statements prepared by him or electronically verify using
his credentials.
(11) A goods and services tax practitioner enrolled in any other State or Union Territory shall be treated
as enrolled in the State/Union territory for the purposes specified in sub-rule (8).

25. Conditions for purposes of appearance
(1) No person shall be eligible to attend before any authority as a goods and services tax practitioner in
connection with any proceedings under the Act on behalf of any registered or un-registered person unless
he has been enrolled under rule 24.
(2) A goods and services tax practitioner attending on behalf of a registered or an un-registered person
in any proceedings under the Act before any authority shall produce before such authority, if required, a
copy of the authorisation given by such person in FORM GST PCT-05.

********

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 73 of 147








DRAFT
GOODS AND SERVICES TAX RULES, 2017
RETURN FORMS




Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 74 of 147
List of Forms
Sr. No. Form No. Title of the Form
1 2 3
1. GSTR-1 Details of outwards supplies of goods or services
2. GSTR-1A Details of auto drafted supplies of goods or services
3. GSTR-2 Details of inward supplies of goods or services
4. GSTR-2A
Details of supplies auto drafted from GSTR-1 or GSTR-5 to recipient
5. GSTR-3 Monthly return
6. GSTR-3A Notice to return defaulter u/s 46
7. GSTR-4 Quarterly return for registered persons opting composition levy
8. GSTR-4A Auto drafted details for registered persons opting composition levy
9. GSTR-5 Return for Non-Resident Taxable Persons
10. GSTR-5A Details of supplies of online information and database access or
retrieval services by a person located outside India made to non-
taxable persons in India
11. GSTR-6 Return for input service distributors
12. GSTR-6A Details of supplies auto drafted from GSTR-1 or
GSTR-5 to ISD.
13. GSTR-7 Return for Tax Deduction at Source
14. GSTR-7A Tax Deduction at Source Certificate
15. GSTR-8 Statement for Tax Collection at Source
16. GSTR-11 Inward supplies statement for persons having Unique Identification
Number (UIN)



Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 75 of 147
Form GSTR-1
[See Rule ----]

Details of outward supplies of goods or services

Year
Month

1. GSTIN
2. (a) Legal name of the registered person
(b) Trade name, if any
3. (a) Aggregate Turnover in the preceding Financial Year
(b) Aggregate Turnover - April to June, 2017

4. Taxable outward supplies made to registered persons (including UIN-holders) other than supplies
covered by Table 6
(Amount in Rs. for all Tables)
GSTIN/
UIN

Invoice details Rate Taxable
value
Amount Place of
Supply
(Name of
State)
No. Date Value Integrated
Tax
Central
Tax
State /
UT Tax
Cess
1 2 3 4 5 6 7 8 9 10 11
4A. Supplies other than those (i) attracting reverse charge and (ii) supplies made through e-commerce
operator


4B. Supplies attracting tax on reverse charge basis


4C. Supplies made through e-commerce operator attracting TCS (operator wise, rate wise)
GSTIN of e-commerce operator



5. Taxable outward inter-State supplies to un-registered persons where the invoice value is more
than Rs 2.5 lakh
Place of
Supply
(State)
Invoice details Rate Taxable
Value
Amount
No. Date Value Integrated Tax Cess
1 2 3 4 5 6 7 8
5A. Outward supplies (other than supplies made through e-commerce operator, rate wise)


5B. Supplies made through e-commerce operator attracting TCS (operator wise, rate wise)
GSTIN of e-commerce operator


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 76 of 147
6. Zero rated supplies and Deemed Exports
GSTIN of recipient
Invoice details
Shipping bill/ Bill of
export
Integrated Tax
No. Date Value No. Date Rate
Taxable
value
Amt.
1 2 3 4 5 6 7 8 9
6A. Exports


6B. Supplies made to SEZ unit or SEZ Developer


6C. Deemed exports

7. Taxable supplies (Net of debit notes and credit notes) to unregistered persons other
than the supplies covered in Table 5
Rate of tax Total Taxable
value
Amount
Integrated
Tax
Central Tax State Tax/UT Tax Cess
1 2 3 4 5 6
7A. Intra-State supplies
7A (1). Consolidated rate wise outward supplies [including supplies made through e-commerce operator attracting TCS]

7A (2). Out of supplies mentioned at 7A(1), value of supplies made through e-Commerce Operators attracting TCS
(operator wise, rate wise)
GSTIN of e-commerce operator

7B. Inter-State Supplies where invoice value is upto Rs 2.5 Lakh [Rate wise]
7B (1). Place of Supply (Name of State)

7B (2). Out of the supplies mentioned in 7B (1), the supplies made through e-Commerce Operators (operator
wise, rate wise)
GSTIN of e-commerce operator
8. Nil rated, exempted and non-GST outward supplies
Description Nil Rated
Supplies
Exempted
(Other than Nil rated/non-
GST supply)
Non-GST
supplies
1 2 3 4
8A. Inter-State supplies to registered persons
8B. Intra- State supplies to registered persons
8C. Inter-State supplies to unregistered persons
8D. Intra-State supplies to unregistered persons

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 77 of 147
9. Amendments to taxable outward supply details furnished in returns for earlier tax
periods in Table 4, 5 and 6 [including debit notes, credit notes, refund vouchers issued
during current period and amendments thereof]

Details of original
document
Revised details of document or details of
original Debit/Credit Notes or refund
vouchers
Rate Taxable
Value
Amount Place of
supply
GSTIN Inv.
No.
Inv.
Date

GSTIN Invoice Shipping bill Value
Integrated
Tax
Central
Tax
State /
UT Tax
Cess
No Date No. Date
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
9A. If the invoice/Shipping bill details furnished earlier were incorrect

9B. Debit Notes/Credit Notes/Refund voucher [original]

9C. Debit Notes/Credit Notes/Refund voucher [amendments thereof]



10. Amendments to taxable outward supplies to unregistered persons furnished in returns for
earlier tax periods in Table 7
Rate of tax Total Taxable
value
Amount
Integrated
Tax
Central Tax State/UT Tax
UT Tax
Cess
1 2 3 4 5 6
Tax period for which the details are being
revised
<Month>
10A. Intra-State Supplies [including supplies made through e-commerce operator attracting TCS] [Rate wise]

10A (1). Out of supplies mentioned at 10A, value of supplies made through e-Commerce Operators attracting TCS (operator
wise, rate wise)
GSTIN of e-commerce operator

10B. Inter-State Supplies [including supplies made through e-commerce operator attracting TCS] [Rate wise]
Place of Supply (Name of State)

10B (1). Out of supplies mentioned at 10B, value of supplies made through e-Commerce Operators attracting TCS (operator
wise, rate wise)
GSTIN of e-commerce operator









Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 78 of 147

11. Consolidated Statement of Advances Received/Advance adjusted in the current tax period/
Amendments of information furnished in earlier tax period
Rate Gross Advance
Received/adjusted
Place of supply
(Name of State)
Amount
Integrated Central State/UT Cess
1 2 3 4 5 6 7
I Information for the current tax period
11A. Advance amount received in the tax period for which invoice has not been issued (tax amount to be added
to output tax liability)
11A (1). Intra-State supplies (Rate Wise)

11A (2). Inter-State Supplies (Rate Wise)

11B. Advance amount received in earlier tax period and adjusted against the supplies being shown in this tax
period in Table Nos. 4, 5, 6 and 7
11B (1). Intra-State Supplies (Rate Wise)

11B (2). Inter-State Supplies (Rate Wise)

II Amendment of information furnished in Table No. 11[1] in GSTR-1 statement for earlier tax periods
[Furnish revised information]
Month
Amendment relating to information furnished in
S. No.(select)
11A(1) 11A(2) 11B(1) 11B(2)


12. HSN-wise summary of outward supplies
Sr. No. HSN
Description
(Optional if
HSN is
provided)
UQC Total
Quantity
Total
value
Total
Taxable
Value
Amount
Integrated
Tax
Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11

13. Documents issued during the tax period
Sr.
No.
Nature of document Sr. No. Total
number
Cancelled Net issued
From To
1 2 3 4 5 6 7
1 Invoices for outward supply
2
Invoices for inward supply from
unregistered person

3 Revised Invoice
4 Debit Note
5 Credit Note
6 Receipt voucher
7 Payment Voucher
8 Refund voucher
9 Delivery Challan for job work
10 Delivery Challan for supply on approval
11 Delivery Challan in case of liquid gas
12 Delivery Challan in cases other than by
way of supply (excluding at S no. 9 to 11)

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 79 of 147

Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best
of my knowledge and belief and nothing has been concealed there from and in case of any reduction in
output tax liability the benefit thereof has been/will be passed on to the recipient of supply.


Signatures
Place Name of Authorized
Signatory ….……………………
Date Designation
/Status……………………………………


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 80 of 147
Instructions –
1. Terms used:
a. GSTIN: Goods and Services Tax Identification Number
b. UIN: Unique Identity Number
c. UQC: Unit Quantity Code
d. HSN: Harmonized System of Nomenclature
e. POS: Place of Supply (Respective State)
f. B to B: From one registered person to another registered person
g. B to C: From registered person to unregistered person
2. The details in GSTR-1 should be furnished by 10thof the month succeeding the relevant tax period.
3. Aggregate turnover of the taxpayer for the immediate preceding financial year and first
quarter of the current financial year shall be reported in the preliminary information in Table
3. This information would be required to be submitted by the taxpayers only in the first year.
Quarterly turnover information shall not be captured in subsequent returns. Aggregate
turnover shall be auto-populated in subsequent years.
4. Invoice-level information pertaining to the tax period should be reported for all supplies as
under:
(i) For all B to B supplies (whether inter-State or intra-State), invoice level details, rate-
wise, should be uploaded in Table 4, including supplies attracting reverse charge and
those effected through e-commerce operator. Outwards supply information in these
categories are to be furnished separately in the Table.
(ii) For all inter-State B to C supplies, where invoice value is more than Rs. 2,50,000/- (B
to C Large) invoice level details, rate-wise, should be uploaded in Table 5; and
(iii) For all B to C supplies (whether inter-State or intra-State) where invoice value is up to
Rs. 2,50,000/- State-wise summary of supplies, rate-wise, should be uploaded in Table
7.
5. Table 4 capturing information relating to B to B supplies should:
(i) be captured in:
a. Table 4A for supplies relating to other than reverse charge/ made through e-
commerce operator, rate-wise;
b. Table 4B for supplies attracting reverse charge, rate -wise; and
c. Table 4C relating to supplies effected through e-commerce operator attracting
collection of tax at source under section 52 of the Act, operator wise and rate-wise.
(ii) Capture Place of Supply (PoS) only if the same is different from the location of the recipient.
6. Table 5 to capture information of B to C Large invoices and other information shall be
similar to Table 4. The Place of Supply (PoS) column is mandatory in this table.
7. Table 6 to capture information related to:
(i) Exports out of India
(ii) Supplies to SEZ unit/ and SEZ developer
(iii) Deemed Exports
8. Table 6 needs to capture information about shipping bill and its date. However, if the
shipping bill details are not available, Table 6 will still accept the information. The same
can be updated through submission of information in relation to amendment Table 9 in the
tax period in which the details are available but before claiming any refund / rebate related
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 81 of 147
to the said invoice. The detail of Shipping Bill shall be furnished in 13 digits capturing port
code (six digits) followed by number of shipping bill.
9. Any supply made by SEZ to DTA, without the cover of a bill of entry is required to be
reported by SEZ unit in GSTR-1. The supplies made by SEZ on cover of a bill of entry shall
be reported also by DTA unit in its GSTR-2 as imports in GSTR-2. The liability for payment
of IGST in respect of supply of services would, be created from this Table..
10. In case of export transactions, GSTIN of recipient will not be there. Hence it will remain
blank.
11. Export transactions effected without payment of IGST (under Bond/ Letter of Undertaking
(LUT)) needs to be reported under “0” tax amount heading in Table 6A and 6B.
12. Table 7 to capture information in respect of taxable supply of:
(i) B to C supplies (whether inter-State or intra-State)with invoice value upto Rs 2,50,000;
(ii) Taxable value net of debit/ credit note raised in a particular tax period and information
pertaining to previous tax periods which was not reported earlier, shall be reported in
Table 10. Negative value can be mentioned in this table, if required;
(iii) Transactions effected through e-commerce operator attracting collection of tax at
source under section 52 of the Act to be provided operator wise and rate wise;
(iv) Table 7A (1) to capture gross intra-State supplies, rate-wise, including supplies made
through e-commerce operator attracting collection of tax at source and Table 7A (2) to
capture supplies made through e-commerce operator attracting collection of tax at
source out of gross supplies reported in Table 7A (1);
(v) Table 7B (1) to capture gross inter-State supplies including supplies made through e-
commerce operator attracting collection of tax at source and Table 7B (2) to c apture
supplies made through e-commerce operator attracting collection of tax at source out of
gross supplies reported in Table 7B (1); and
(vi) Table 7B to capture information State wise and rate wise.
13. Table 9 to capture information of:
(i) Amendments of B to B supplies reported in Table 4, B to C Large supplies reported in
Table 5 and Supplies involving exports/ SEZ unit or SEZ developer/ deemed exports
reported in Table 6;
(ii) Information to be captured rate-wise;
(iii) It also captures original information of debit / credit note issued and amendment to it
reported in earlier tax periods; While furnishing information the original debit
note/credit note, the details of invoice shall be mentioned in the first three columns,
While furnishing revision of a debit note/credit note, the details of original debit
note/credit note shall be mentioned in the first three columns of this Table,
(iv) Place of Supply (PoS) only if the same is different from the location of the recipient;
(v) Any debit/ credit note pertaining to invoices issued before the appointed day under the
existing law also to be reported in this table; and
(vi) Shipping bill to be provided only in case of exports transactions amendment.
14. Table 10 is similar to Table 9 but captures amendment information related to B to C supplies
and reported in Table 7.
15. Table 11A captures information related to advances received, rate -wise, in the tax period
and tax to be paid thereon along with the respective PoS. It also includes information in
Table 11B for adjustment of tax paid on advance received and reported in earlier tax periods
against invoices issued in the current tax period. The details of information relating to
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 82 of 147
advances would be submitted only if the invoice has not been issued in the same tax period
in which the advance was received.
16. Summary of supplies effected against a particular HSN code to be reported only in summary
table. It will be optional for taxpayers having annual turnover upto Rs. 1.50 Cr but they need
to provide information about description of goods .
17. It will be mandatory to report HSN code at two digits level for taxpayers having annual
turnover in the preceding year above Rs. 1.50 Cr but upto Rs. 5.00 Cr and at four digits level
for taxpayers having annual turnover above Rs. 5.00 Cr.












Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 83 of 147
Form GSTR-1A
[See Rule ----]

Details of auto drafted supplies
(From GSTR 2, GSTR 4 or GSTR 6 )

Year
Month
1. GSTIN
2. (a) Legal name of the registered person
(b) Trade name, if any

3. Taxable outward supplies made to registered persons including supplies attracting reverse
charge other than the supplies covered in Table No. 4
GSTIN/
UIN

Invoice details Rate Taxable
value
Amount Place of
Supply
(Name of
State)
No. Date Value Integrated
Tax
Central
Tax
State /
UT Tax
Cess
1 2 3 4 5 6 7 8 9 10 11
3A. Supplies other than those attracting reverse charge (From table 3 of GSTR-2)

3B. Supplies attracting reverse charge (From table 4A of GSTR-2)

4. Zero rated supplies made to SEZ and deemed exports

GSTIN of recipient Invoice details Integrated Tax
No. Date Value Rate Taxable value Tax amount
1 2 3 4 5 6 7
4A. Supplies made to SEZ unit or SEZ Developer


4B. Deemed exports


5. Debit notes, credit notes (including amendments thereof) issued during current period

Details of original
document
Revised details of
document or details of
original Debit / Credit Note
Rate Taxable
value
Place of
supply
(Name
of State)
Amount of tax
GSTIN No. Date GSTIN No. Date Value Integrated
Tax
Central
Tax
State /
UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 84 of 147


Verification

I hereby solemnly affirm and declare that the information given herein above is true and correct to the best
of my knowledge and belief and nothing has been concealed therefrom and in case of any reduction in
output tax liability the benefit thereof has been/will be passed on to the recipient of supply.


Signatures
Place Name of Authorized
Signatory ….……………………
Date Designation
/Status……………………………………






Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 85 of 147
Form GSTR-2
[See Rule…..]

Details of inward supplies of goods or services


Year
Month

1. GSTIN
2. (a) Legal name of the registered person Auto populated
(b) Trade name, if any Auto populated
3. Inward supplies received from a registered person other than the supplies attracting
reverse charge
(Amount in Rs. for all Tables)
4. Inward supplies on which tax is to be paid on reverse charge
GSTIN
of
supplier

Invoice details
Rate Taxable
value
Amount of Tax Place
of
supply
(Name
of
State)

Whether
input or
input
service/
Capital
goods (incl.
plant and
machinery)/
Ineligible
for ITC
Amount of ITC available
Integrated
Tax
Central
Tax
State/
UT
Tax
Cess
No Date Value Integrated
tax
Central
Tax
State/
UT
Tax
CESS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
4A. Inward supplies received from a registered supplier (attracting reverse charge)


4B. Inward supplies received from an unregistered supplier

4C. Import of service



GSTIN
of
supplier
Invoice details Rate Taxable
value
Amount of Tax Place
of
supply
(Name
of
State)

Whether
input or
input service/
Capital
goods (incl
plant and
machinery)/
Ineligible for
ITC
Amount of ITC available
Integrated
Tax
Central
Tax
State/
UT
Tax
Cess
No Date Value Integrated
tax
Central
Tax
State/
UT
Tax
CESS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 86 of 147

5. Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry
GSTIN
of
supplier
Details of bill of
entry
Rate Taxable
value
Amount Whether input /
Capital
goods(incl.
plant and
machinery)/
Ineligible for
ITC
Amount of ITC
available
No. Date Value Integrated
Tax
Cess Integrated
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11
5A. Imports


5B. Received from SEZ


Port code +No of BE=13 digits
Assessable
Value

6. Amendments to details of inward supplies furnished in returns for earlier tax periods in Tables 3, 4
and 5 [including debit notes/credit notes issued and their subsequent amendments]

7. Supplies received from composition taxable person and other exempt/Nil rated/Non GST supplies
received
Description Value of supplies received from
Composition taxable
person
Exempt supply Nil Rated supply Non GST supply
1 2 3 4 5
7A. Inter-State supplies
7B. Intra-state supplies
Details of
original
invoice /Bill of
entry No
Revised details of
invoice
Rate Taxable
value
Amount Place
of
supply
Whether
input or
input
service/
Capital
goods/
Ineligible
for ITC)
Amount of ITC available

Integrated
Tax

Central
Tax

State/UT
Tax
Cess
GSTIN No. Date GSTIN No. Date Value Integrated
Tax
Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
6A. Supplies other than import of goods or goods received from SEZ [Information furnished in Table 3 and 4 of earlier
returns]-If details furnished earlier were incorrect

6B. Supplies by way of import of goods or goods received from SEZ [Information furnished in Table 5 of earlier returns]-If
details furnished earlier were incorrect

6C. Debit Notes/Credit Notes [original]

6D. Debit Notes/ Credit Notes [amendment of debit notes/credit notes furnished in earlier tax periods]

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 87 of 147
8. ISD credit received

GSTIN of ISD
ISD Document
Details
ISD Credit received Amount of eligible ITC
No. Date Integrated
Tax
Central
Tax
State/
UT Tax
Cess Integrated
Tax
Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11
8A. ISD Invoice

8B. ISD Credit Note


9. TDS and TCS Credit received

GSTIN of Deductor /
GSTIN of e-
Commerce Operator
Gross
Value
Sales
Return
Net Value Amount
Integrated
Tax
Central Tax State Tax /UT Tax
1 2 3 4 5 6 7
9A. TDS

9B. TCS

10. Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply
Rate Gross
Advance
Paid
Place of supply
(Name of State)
Amount
Integrated
Tax
Central Tax State/UT Tax Cess
1 2 3 4 5 6 7
(I) Information for the current month
10A. Advance amount paid for reverse charge supplies in the tax period (tax amount to be added to output tax
liability)
10A (1). Intra-State supplies (Rate Wise)

10A (2). Inter -State Supplies (Rate Wise)

10B. Advance amount on which tax was paid in earlier period but invoice has been received in the current period
[ reflected in Table 4 above]
10B (1). Intra-State Supplies (Rate Wise)

10B (2). Intra-State Supplies (Rate Wise)

II Amendments of information furnished in Table No. 10 (I) in an earlier month [Furnish revised
information]
Month
Amendment relating to information furnished in S.
No.(select)
10A(1) 10A(2) 10(B1) 10B(2)

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 88 of 147
11. Input Tax Credit Reversal / Reclaim
Description for reversal of ITC To be added to or
reduced from output
liability
Amount of ITC
Integrated
Tax
Central
Tax
State/UT
Tax
CESS
1 2 3 4 5 6
A. Information for the current tax period
(a) Amount in terms of rule 2(2) of ITC Rules To be added
(b) Amount in terms of rule 4(1)(j)(ii) of ITC
Rules
To be added
(c) Amount in terms of rule 7 (1) (m) of ITC
Rules
To be added
(d) Amount in terms of rule 8(1) (h) of the
ITC Rules
To be added
(e) Amount in terms of rule 7 (2)(a) of ITC
Rules
To be added
(f) Amount in terms of rule 7(2)(b) of ITC
Rules
To be reduced
(g) On account of amount paid subsequent to
reversal of ITC
To be reduced
(h) Any other liability (Specify) ……
B. Amendment of information furnished in Table No 11 at S. No A in an earlier return
Amendment is in respect of information
furnished in the Month

Specify the information you wish to amend
(Drop down)


12. Addition and reduction of amount in output tax for mismatch and other reasons

Description Add to or
reduce from
output
liability
Amount
Integrated
Tax
Central
Tax
State
/ UT
Tax
CESS
1 2 3 4 5 6
(a)
ITC claimed on mismatched/duplication of invoices/debit
notes
Add
(b) Tax liability on mismatched credit notes Add
(c)
Reclaim on account of rectification of mismatched
invoices/debit notes
Reduce
(d)
Reclaim on account of rectification of mismatched credit
note
Reduce
(e) Negative tax liability from previous tax periods Reduce
(f)
Tax paid on advance in earlier tax periods and adjusted
with tax on supplies made in current tax period
Reduce

13. HSN summary of inward supplies
Sr. No. HSN Description
(Optional
if HSN is
furnished)
UQC Total
Quantity
Total
value
Total
Taxable
Value
Amount
Integrated
Tax
Central
Tax

State/UT
Tax

Cess
1 2 3 4 5 6 7 8 9 10 11

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 89 of 147

Verification (by authorized signatory)
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best
of my knowledge and belief and nothing has been concealed therefrom

Signatures………………………………
Place: Name of Authorized Signatory ….……………………
Date: Designation /Status……………………………………


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 90 of 147
Instructions –
1. Terms used:
a. GSTIN: Goods and Services Tax Identification Number
b. UIN: Unique Identity Number
c. UQC: Unit Quantity Code
d. HSN: Harmonized System of Nomenclature
e. POS: Place of Supply (Respective State)
f. B to B: From one registered person to another registered person
g. B to C: From registered person to unregistered person

2. Table 3& 4 to capture information of:
(i) Invoice-level inward supply information, rate-wise, pertaining to the tax period reported by
supplier in GSTR-1 to be made available in GSTR-2 based on auto-populated details
received in GSTR-2A;
(ii) Table 3 to capture inward supplies other than those attracting reverse charge and
Table 4 to capture inward supplies attracting reverse charge;
(iii) The recipient taxpayer has the following option to act on the auto populated
information:
a. Accept,
b. Reject,
c. Modify (if information provided by supplier is incorrect), or
d. Keep the transaction pending for action (if goods or services have not been
received)
(iv) After taking the action, recipient taxpayer will have to mention whether he is eligible
to avail credit or not and if he is eligible to avail credit, then the amount of eligible
credit against the tax mentioned in the invoice needs to be filed;
(v) The recipient taxpayer can also add invoices (not uploaded by the counterparty
supplier) if he is in possession of invoices and have received the goods or services;
(vi) Table 4A to be auto populated;
(vii) In case of invoices added by recipient tax payer, Place of Supply (PoS) to be captured
always except in case of supplies received from registered person, where it is required only if
the same is different from the location of the recipient;
(viii) Recipient will have the option to accept invoices auto populated as well as add
invoices, pertaining to reverse charge only when the time of supply arises in terms of
section 12 or 13 of the Act; and
(ix) Recipient tax payer is required to declare in Column No. 12 whether the inward
supplies are inputs or input services or capital goods (including plant and machinery).
3. Details relating to import of Goods/Capital Goods from outside India as well as supplied by
an SEZ Unit to be reported rate-wise by recipient tax payer in Table 5.
4. Recipient to provide for Bill of Entry information including six digits port code and seven
digits bill of entry number.
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 91 of 147
5. Taxable Value in Table 5 means assessable value for customs purposes on which IGST is
computed (IGST is levied on value plus specified customs duties). In case of imports, the
GSTIN would be of recipient tax payer.
6. Table 6 to capture amendment of information, rate-wise, provided in earlier tax periods in
Table 3, 4 and 5 as well as original/ amended information of debit or credit note. GSTIN not
to be provided in case of export transactions.
7. Table 7 captures information on a gross value level.
8. An option similar to Table 3 is not available in case of Table 8 and the credit as distributed
by ISD (whether eligible or ineligible) will be made available to the recipient unit and it
will be required to re-determine the eligibility as well as the amount eligible as ITC.
9. TDS and TCS credit would be auto-populated in Table 9. Sales return and Net value columns
are not applicable in case of tax deducted at source in Table 9.
10. The eligible credit from Table 3, Table 4 & Table 8 relating to inward supplies to be
populated in the Electronic Credit Ledger on submission of its return in Form GSTR-3.
11. Recipient can claim less ITC on an invoice depending on its use i.e. whether for business
purpose or non-business purpose.
12. Information of advance paid pertaining to reverse charge supplies and the tax paid on it
including adjustments against invoices issued should be reported in Table 10.
13. Table 12 to capture additional liability due to mismatch as well as reduction in output
liability due to rectification of mismatch on account of filing of GSTR-3 of the immediately
preceding tax period.
14. Reporting criteria of HSN will be same as reported in GSTR-1.





Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 92 of 147
FORM GSTR-2A
[See Rule…..]
Details of auto drafted supplies
(From GSTR 1, GSTR 5, GSTR-6, GSTR-7 and GSTR-8)

Year
Month

1. GSTIN
2. (a) Legal name of the registered person
(b) Trade name, if any

PART A

3. Inward supplies received from a registered person other than the supplies attracting
reverse charge
(Amount in Rs. for all Tables)

4. Inward supplies received from a registered person on which tax is to be paid on reverse
charge

GSTIN
of supplier
Invoice details Rate Taxable
value
Amount of tax Place of
supply
(Name of
State)
No.
Date Value Integrated
Tax
Central
Tax
State/
UT Tax
Cess
1 2 3 4 5 6 7 8 9 10 11

5. Debit / Credit notes (including amendments thereof) received during current tax period


GSTIN
of supplier
Invoice details Rate Taxable
value
Amount of tax Place of supply
(Name of State)

No.

Date Value Integrated
tax
Central
Tax
State/
UT Tax
Cess
1 2 3 4 5 6 7 8 9 10 11

Details of original
document
Revised details of
document or details of
original Debit / Credit
note
Rate Taxable
value
Amount of tax Place of
supply
(Name of
State)

GSTIN No. Date GSTIN No. Date Value Integrated
Tax
Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 93 of 147
PART B
6. ISD credit (including amendments thereof) received
GSTIN of ISD ISD document details ITC amount involved
No. Date Integrated Tax Central Tax State/
UT Tax
Cess
1 2 3 4 5 6 7
ISD Invoice –eligible ITC
ISD Invoice –ineligible ITC
ISD Credit note –eligible ITC
ISD Credit note –ineligible ITC

PART- C

7. TDS and TCS Credit (including amendments thereof) received
GSTIN of Deductor /
GSTIN of e-
Commerce Operator
Amount
received /
Gross
Value

Sales Return


Net Value
Amount
Integrated
Tax
Central Tax State Tax /UT Tax
1 2 3 4 5 6 7
7A. TDS


7B. TCS


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 94 of 147
Form GSTR-3
[See Rule ------]

Monthly return
Year
Month

1. GSTIN
2. (a) Legal name of the registered person Auto Populated
(b) Trade name, if any Auto Populated
Part-A (To be auto populated)
(Amount in Rs. for all Tables)
3. Turnover
Sr.
No.
Type of Turnover Amount
1 2 3
(i) Taxable [other than zero rated]
(ii) Zero rated supply on payment of Tax
(iii) Zero rated supply without payment of Tax
(iv) Deemed exports
(v) Exempted
(vi) Nil Rated
(vii) Non-GST supply
Total
4. Outward supplies
4.1 Inter-State supplies (Net Supply for the month)

Rate Taxable Value Amount of Tax
Integrated Tax CESS
1 2 3 4
A. Taxable supplies (other than reverse charge and zero rated supply) [Tax Rate Wise]
B. Supplies attracting reverse charge-Tax payable by recipient of supply

C. Zero rated supply made with payment of Integrated Tax

D. Out of the supplies mentioned at A, the value of supplies made though an e-commerce operator attracting
TCS-[Rate wise]
GSTIN of e-commerce operator



Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 95 of 147
4.2 Intra-State supplies (Net supply for the month)
Rate Taxable Value Amount of Tax
Central Tax State /UT Tax Cess
1 2 3 4 5
A. Taxable supplies (other than reverse charge) [Tax Rate wise]

B. Supplies attracting reverse charge- Tax payable by the recipient of supply

C. Out of the supplies mentioned at A, the value of supplies made though an e-commerce operator attracting
TCS [Rate wise]
GSTIN of e-commerce operator

4.3 Tax effect of amendments made in respect of outward supplies
Rate Net differential value Amount of Tax
Integrated
tax
Central Tax State/UT Tax Cess
1 2 3 4 5 6
(I) Inter-State supplies
A Taxable supplies (other than reverse charge and Zero Rated supply made with payment of Integrated Tax)
[Rate wise]

B Zero rated supply made with payment of Integrated Tax [Rate wise]

C Out of the Supplies mentioned at A, the value of supplies made though an e-commerce operator attracting
TCS

(II) Intra-state supplies
A Taxable supplies (other than reverse charge) [Rate wise]

B Out of the supplies mentioned at A, the value of supplies made though an e-commerce operator attracting
TCS

5. Inward supplies attracting reverse charge including import of services (Net of advance adjustments)
5A. Inward supplies on which tax is payable on reverse charge basis
Rate of tax Taxable Value Amount of tax
Integrated Tax Central Tax State/UT tax CESS
1 2 3 4 5 6
(I) Inter-State inward supplies [Rate Wise]

(II) Intra-State inward supplies [Rate Wise]
5B. Tax effect of amendments in respect of supplies attracting reverse charge
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 96 of 147
Rate of tax Differential
Taxable Value
Amount of tax
Integrated Tax Central Tax State/UT Tax CESS
1 2 3 4 5 6
(I) Inter-State inward supplies (Rate Wise)

(II) Intra-State inward supplies (Rate Wise)

6. Input tax credit
ITC on inward taxable supplies, including imports and ITC received from ISD [Net of debit notes/credit
notes]

7. Addition and reduction of amount in output tax for mismatch and other reasons
Description Add to or
reduce from
output
liability
Amount
Integrated
tax
Central
tax
State
/ UT
tax
CESS
1 2 3 4 5 6
(a)
ITC claimed on mismatched/duplication of
invoices/debit notes
Add
(b) Tax liability on mismatched credit notes Add
(c)
Reclaim on rectification of mismatched
invoices/Debit Notes
Reduce
(d) Reclaim on rectification of mismatch credit note Reduce
(e) Negative tax liability from previous tax periods Reduce
(f)
Tax paid on advance in earlier tax periods and
adjusted with tax on supplies made in current tax
period
Reduce
(g) Input Tax credit reversal/reclaim Add/Reduce



Description Taxable
value
Amount of tax Amount of ITC
Integrated
Tax
Central
Tax
State/
UT
Tax
CESS Integrated
Tax
Central
Tax
State/
UT
Tax
CESS
1 2 3 4 5 6 7 8 9 10
(I) On account of supplies received and debit notes/credit notes received during the current tax period
(a) Inputs
(b) Input services
(c) Capital goods
(II) On account of amendments made (of the details furnished in earlier tax periods)
(a) Inputs
(b) Input services
(c) Capital goods
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 97 of 147
8. Total tax liability
Rate of Tax Taxable value Amount of tax
Integrated
tax
Central
tax
State/UT Tax CESS
1 2 3 4 5 6
8A. On outward supplies
8B. On inward supplies attracting reverse charge

8C. On account of Input Tax Credit
Reversal/reclaim

8D. On account of mismatch/ rectification /other
reasons


9. Credit of TDS and TCS
Amount
Integrated tax Central tax State/ UT Tax
1 2 3 4
(a) TDS
(b) TCS
10. Interest liability (Interest as on ...............)
On account of Output
liability
on
mismatch
ITC
claimed on
mismatched
invoice
On
account
of other
ITC
reversal
Undue
excess
claims or
excess
reduction
[refer sec
50(3)]
Credit of
interest on
rectification
of mismatch
Interest
liability
carry
forward
Delay in
payment
of tax
Total
interest
liability
1 2 3 4 5 6 7 8 9
(a) Integrated Tax
(b) Central Tax
(c) State/UT Tax
(d) Cess

11. Late Fee
On account of Central Tax State/UT tax
1 2 3
Late fee


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 98 of 147
Part B
12. Tax payable and paid

Description Tax
payable
Paid in
cash
Paid through ITC Tax Paid
Integrated Tax Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8
(a) Integrated Tax
(b) Central Tax
(c) State/UT Tax
(d) Cess

13. Interest, Late Fee and any other amount (other than tax) payable and paid

Description Amount payable Amount Paid
1 2 3
(I) Interest on account of
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
Late fee
(a) Central tax
(b) State/UT tax

14. Refund claimed from Electronic cash ledger

Description Tax Interest Penalty Fee Other Debit Entry Nos.
1 2 3 4 5 6 7
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
Bank Account Details (Drop Down)

15. Debit entries in electronic cash/Credit ledger for tax/interest payment [to be populated after payment of tax
and submissions of return]

Description Tax paid
in cash
Tax paid through ITC Interest Late
fee
Integrated tax Central Tax State/UT Tax Cess
1 2 3 4 5 6 7 8
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
Verification
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 99 of 147
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my
knowledge and belief and nothing has been concealed therefrom.

Signatures of Authorized Signatory ……………………………
Place …………… Name of Authorized Signatory ….……………………
Date ……………. Designation /Status……………………………………


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 100 of 147
Instructions:-
1. Terms Used :-
a) GSTIN :- Goods and Services Tax Identification Number
b) TDS :- Tax Deducted at source
c) TCS :- Tax Collected at source

2. GSTR 3 can be generated only when GSTR-1 and GSTR- 2 of the tax period have been filed.

3. Electronic liability register, electronic cash ledger and electronic credit ledger of taxpayer will be
updated on generation of GSTR-3 by taxpayer.
4. Part A of GSTR-3 is auto-populated on the basis of GSTR 1, GSTR 1A and GSTR 2.
5. Part B of GSTR-3 relates to payment of tax, interest, late fee etc. by utilising credit available in
electronic credit ledger and cash ledger.

6. Tax liability relating to outward supplies in Table 4 is net of invoices, debit/credit notes and
advances received.
7. Table 4.1 will not include zero rated supplies made without payment of taxes.
8. Table 4.3 will not include amendments of supplies originally made under reverse charge basis.
9. Tax liability due to reverse charge on inward supplies in Table 5 is net of invoices, debit/credit
notes, advances paid and adjustments made out of tax paid on advances earlier.

10. Utilization of input tax credit should be made in accordance with the provisions of section 49.

11. GSTR-3 filed without discharging complete liability will not be treated as valid return.

12. If taxpayer has filed a return which was not valid earlier and later on, he intends to discharge the
remaining liability, then he has to file the Part B of GSTR-3 again.
13. Refund from cash ledger can only be claimed only when all the return related liabilities for that tax
period have been discharged.

14. Refund claimed from cash ledger through Table 14 will result in a debit entry in electronic cash
ledger on filing of valid GSTR 3.

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 101 of 147
Form GSTR – 3A
[See rule ----]

Reference No: Date:

To

_______ GSTIN

----------------------- Name

_______________ Address
Notice to return defaulter u/s 46 for not filing return

Tax Period - Type of Return -

Being a registered taxpayer, you are required to furnish return for the supplies made or received and to
discharge resultant tax liability for the aforesaid tax period by due date. It has been noticed that you have not
filed the said return till date.

2. You are, therefore, requested to furnish the said return within 15 days failing which the tax liability will be
assessed u/s 62 of the Act, based on the relevant material available with this office. Please note that in addition
to tax so assessed, you will also be liable to pay interest and penalty as per provisions of the Act.

3. Please note that no further communication will be issued for assessing the liability.

4. The notice shall be deemed to have been withdrawn in case the return referred above, is filed by you before
issue of the assessment order.
Or
Notice to return defaulter u/s 46 for not filing final return upon cancellation of registration

Cancellation order No. -- Date ---
Application Reference Number, if any - Date -

Consequent upon applying for surrender of registration or cancellation of your registration for the reasons
specified in the order, you were required to submit a final return in form GSTR-10 as required under section
45 of the Act.
2. It has been noticed that you have not filed the final return by the due date.
3. You are, therefore, requested to furnish the final return as specified under section 45 of the Act within 15
days failing which your tax liability for the aforesaid tax period will be determined in accordance with the
provisions of the Act based on the relevant material available with or gathered by this office. Please note that
in addition to tax so assessed, you will also be liable to pay interest as per provisions of the Act.
4. This notice shall be deemed to be withdrawn in case the return is filed by you before issue of the assessment
order.
Signature
Name
Designation

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 102 of 147
Form GSTR-4
[See Rule…..]

Quarterly return for registered person opting for composition levy

Year
Quarter
1. GSTIN
2. (a) Legal name of the registered person Auto Populated
(b) Trade name, if any Auto Populated
3. (a) Aggregate Turnover in the preceding Financial Year
(b) Aggregate Turnover - April to June, 2017
4. Inward supplies including supplies on which tax is to be paid on reverse charge
GSTIN
of
supplier
Invoice details Rate Taxable
value
Amount of Tax Place of
supply
(Name of
State) No. Date Value Integrated
Tax
Central
Tax
State/UT Tax CESS
1 2 3 4 5 6 7 8 9 10 11
4A. Inward supplies received from a registered supplier (other than supplies attracting reverse charge)
4B. Inward supplies received from a registered supplier (attracting reverse charge)


4C. Inward supplies received from an unregistered supplier
4D. Import of service


5. Amendments to details of inward supplies furnished in returns for earlier tax periods in Table 4
[including debit notes/credit notes and their subsequent amendments]


Details of original
invoice
Revised details of invoice Rate Taxable
value
Amount Place of
supply
(Name
of State) GSTIN No. Date GSTIN No. Date Value Integrated
Tax
Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14
5A. Supplies [Information furnished in Table 4 of earlier returns]-If details furnished earlier were incorrect

5B. Debit Notes/Credit Notes [original)]

5C. Debit Notes/ Credit Notes [amendment of debit notes/credit notes furnished in earlier tax periods]

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 103 of 147

6. Tax on outward supplies made (Net of advance and goods returned)

Rate of tax Turnover Composition tax amount
Central Tax State/UT Tax
1 2 3 4

7. Amendments to Outward Supply details furnished in returns for earlier tax periods in Table No. 6
Quarter Rate Original details Revised details
Turnover Central Tax State/UT tax Turnover Central Tax State/UT Tax
1 2 3 4 5 6 7 8


8. Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply
Rate Gross
Advance
Paid
Place of supply
(Name of State)
Amount
Integrated Tax Central Tax State/ UT Tax Cess
1 2 3 4 5 6 7
(II) Information for the current quarter
8A. Advance amount paid for reverse charge supplies in the tax period (tax amount to be added to output tax
liability)
8A (1). Intra-State supplies (Rate Wise)

8A (2). Inter-State Supplies (Rate Wise)

8B. Advance amount on which tax was paid in earlier period but invoice has been received in the current period [
reflected in Table 4 above] (tax amount to be reduced from output tax liability)
8B (1). Intra-State Supplies (Rate Wise)

8B (2). Intra-State Supplies (Rate Wise)

II Amendments of information furnished in Table No. 8 (I) for an earlier quarter
Year Quarter
Amendment relating to information furnished in S.
No.(select)
8A(1) 8A(2) 8B(1) 8B(2)

9. TDS Credit received
GSTIN of Deductor Gross Value Amount
Central Tax State/UT Tax
1 2 3 4


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 104 of 147
10. Tax payable and paid
Description Tax amount payable Pay tax amount
1 2 3
(a) Integrated Tax
(b) Central Tax
(c) State/UT Tax
(d) Cess

11. Interest, Late Fee payable and paid
Description Amount payable Amount Paid
1 2 3
Interest on account of
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
(II) Late fee
(a) Central tax
(b) State/UT tax

12. Refund claimed from Electronic cash ledger
Description Tax Interest Penalty Fee Other Debit Entry Nos.
1 2 3 4 5 6 7
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
Bank Account Details (Drop Down)

13. Debit entries in cash ledger for tax /interest payment [to be populated after payment of tax and submissions
of return]
Description Tax paid in cash Interest Late fee
1 2 3 4
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess

Verification (by authorized signatory)
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my
knowledge and belief and nothing has been concealed therefrom

Signature of Authorized Signatory ……………………………
Place Name of Authorized Signatory ….……………………
Date Designation /Status……………………………………

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 105 of 147
Instructions:-
1. Terms used:
(a) GSTIN: Goods and Services Tax Identification Number
(b) TDS: Tax Deducted at Source
2. The details in GSTR-4 should be furnished between 11th and 18th of the month succeeding the
relevant tax period.
3. Aggregate turnover of the taxpayer for the immediate preceding financial year and first
quarter of the current financial year shall be reported in the preliminary information in
Table 3. This information would be required to be submitted by the taxpayers only in the
first year and should be auto-populated in subsequent years.
4. Table 4 to capture information related to inward supplies, rate -wise:
(i) Table 4A to capture inward supplies from registered supplier other than reverse
charge. This information will be auto-populated from the information reported by
supplier in GSTR-1and GSTR-5;
(ii) Table 4B to capture inward supplies from registered supplier attracting reverse
charge. This information will be auto-populated from the information reported by
supplier in GSTR-1;
(iii) Table 4C to capture supplies from unregistered supplier ;
(iv) Table 4D to capture import of service;
(v) Tax recipient to have the option to accept invoices auto populated/ add invoices,
pertaining to reverse charge only when the time of supply arises in terms of
section 12 or 13 of the Act; and
(vi) Place of Supply (PoS) only if the same is different from the location of the recipient.
5. Table 5 to capture amendment of information provided in ear lier tax periods as well as
original/ amended information of debit or credit note received, rate -wise. Place of Supply
(PoS) to be reported only if the same is different from the location of the recipient. While
furnishing information the original debit /credit note, the details of invoice shall be
mentioned in the first three columns, While furnishing revision of a debit note/credit
note, the details of original debit /credit note shall be mentioned in the first three
columns of this Table,
6. Table 6 to capture details of outward supplies including advance and net of goods
returned during the current taxperiod.
7. Table 7 to capture details of amendment of incorrect details reported in Table 6 of
previous returns.
8. Information of advance paid pertaining to reverse charge supplies and the tax paid on it
including adjustments against invoices issued to be reported in Table 8.
9. TDS credit would be auto-populated in a Table 9.
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 106 of 147
Form GSTR-4A
[See Rule…..]
Auto-drafted details for registered person opting for composition levy
(Auto-drafted from GSTR-1, GSTR-5 and GSTR-7)

Year
Quarter

1. GSTIN
2. (a) Legal name of the registered person Auto Populated
(b) Trade name, if any Auto Populated
3. Inward supplies received from registered person including supplies attracting reverse
charge
GSTIN
of
supplier
Invoice details Rate Taxable
value
Amount of tax Place of
supply
(Name of
State) No. Date Value Integrated
Tax
Central Tax State/UT Tax Cess
1 2 3 4 5 6 7 8 9 10 11
3A. Inward supplies received from a registered supplier (other than supplies attracting reverse charge)

3B. Inward supplies received from a registered supplier (attracting reverse charge)



4. Debit notes/credit notes (including amendments thereof) received during current period

5. TDS Credit received
GSTIN of deductor Gross value Amount of tax
Central Tax State/UT Tax
1 2 3 4



Details of original
document
Revised details of
document or details of
original Debit / Credit
Note
Rate Taxable
value
Amount of tax Place of
supply
(Name of
State)
GSTIN No. Date GSTIN No. Date Value Integrated
Tax
Central
Tax
State/UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 107 of 147
Form GSTR-5
(See Rule….)
Return for Non-resident taxable person
Year
Month

1. GSTIN
2. (a) Legal name of the registered person Auto Populated
(b) Trade name, if any Auto Populated
(c) Validity period of registration Auto Populated
3. Inputs/Capital goods received from Overseas (Import of goods
(Amount in Rs. for all Tables)

Details of bill of entry
Rate
Taxable
value
Amount Amount of ITC available
No. Date Value Integrated Tax Cess Integrated Tax Cess
1 2 3 4 5 6 7 8 9


4. Amendment in the details furnished in any earlier return

Original details Revised details Differential ITC
(+/_)
Bill of entry Bill of entry Rate Taxable
value
Amount Amount of ITC
available
No Date No Date Value Integrated
Tax
Cess Integrated
Tax
Cess Integrated
tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13


5. Taxable outward supplies made to registered persons (including UIN holders)
GSTIN/
UIN
Invoice details Rate Taxable
value
Amount Place of
Supply
(Name of
State)
No. Date Value Integrated
Tax
Central
Tax
State
/
UT
Tax
Cess
1 2 3 4 5 6 7 8 9 10 11


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 108 of 147
6. Taxable outward inter-State supplies to un-registered persons where invoice value is more than Rs 2.5 lakh
Place of
Supply
(State)
Invoice details Rate Taxable Value Amount
No. Date Value Integrated Tax Cess
1 2 3 4 5 7 8 9

7. Taxable supplies (net of debit notes and credit notes) to unregistered persons other than the
supplies mentioned at Table 6
Rate of tax Total Taxable
value
Amount
Integrated Tax Central Tax State /UT Tax Cess
1 2 3 4 5 6
7A. Intra-State supply (Consolidated, rate wise)
7B. Inter-State Supplies where the value of invoice is upto Rs 2.5 Lakh [Rate wise]
Place of Supply (Name of State)

8. Amendments to taxable outward supply details furnished in returns for earlier tax periods in
Table 5 and 6 [including debit note/credit notes and amendments thereof]
Details of original
document
Revised details of document
or
details of original
Debit/Credit Notes
Rate Taxable
Value
Amount Place of
supply
GSTIN No. Date GSTIN No. Date Value Integrated
Tax
Central
Tax
State /
UT Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14
8A. If the invoice details furnished earlier were incorrect

8B. Debit Notes/Credit Notes [original)]

8C. Debit Notes/Credit Notes [amendment of debit notes/credit notes furnished in earlier tax periods]


9. Amendments to taxable outward supplies to unregistered persons furnished in returns for
Earlier tax periods in Table 7
Rate of tax Total taxable
value
Amount
Integrated Tax Central Tax State / UT Tax

Cess
1 2 3 4 5 6
Tax period for which the details are being revised
9A. Intra-State Supplies [Rate wise]

9B. Inter-State Supplies [Rate wise]
Place of Supply (Name of State)

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 109 of 147
10. Total tax liability
Rate of Tax Taxable value
Amount of tax
Integrated Tax
Central
Tax
State/UT Tax CESS
1 2 3 4 5 6
10A. On account of outward supply

10B. On account of differential ITC being negative in Table 4

11. Tax payable and paid
Description Tax payable Paid in
cash
Paid through ITC
Tax Paid
Integrated tax Cess
1 2 3 4 5 6
(e) Integrated Tax
(f) Central Tax
(g) State/UT Tax
(h) Cess
12. Interest, late fee and any other amount payable and paid
Description Amount payable Amount paid
1 2 3
(II) Interest on account of
(b) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
Late fee on account of
(a) Central tax
(b) State / UT tax
13. Refund claimed from electronic cash ledger
Description Tax Interest Penalty Fee Other Debit Entry Nos.
1 2 3 4 5 6 7
(b) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess
Bank Account Details (Drop Down)

14. Debit entries in electronic cash/credit ledger for tax/interest payment [to be populated after payment of
tax and submissions of return]
Description Tax paid in cash Tax paid through ITC Interest Late fee
Integrated tax Cess
1 2 3 4 5 6
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
(d) Cess

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 110 of 147

Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my
knowledge and belief and nothing has been concealed therefrom.
Signatures of Authorized Signatory ……………………………
Place …………… Name of Authorized Signatory ….……………………
Date ……………. Designation /Status……………………………………

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 111 of 147
Instructions:-
1. Terms used:
a. GSTIN: Goods and Services Tax Identification Number
b. UIN: Unique Identity Number
c. UQC: Unit Quantity Code
d. HSN: Harmonized System of Nomenclature
e. POS: Place of Supply (Respective State)
f. B to B: From one registered person to another registered person
g. B to C: From registered person to unregistered person
2. GSTR-5 is applicable to non-resident taxable person and it is a monthly return.
3. The details in GSTR-5 should be furnished by 20thof the month succeeding the relevant tax period
or within 7 days from the last date of the registration whichever is earlier.
4. Table 3 consists of details of import of goods, bill of entry wise and taxpayer has to specify the
amount of ITC eligible on such import of goods.
5. Recipient to provide for Bill of Entry information including six digits port code and
seven digits bill of entry number.
6. Table 4 consists of amendment of import of goods which are declared in the returns of earlier tax
period.
7. Invoice-level information, rate-wise, pertaining to the tax period separately for goods
and services should be reported as under:
i. For all B to B supplies (whether inter-State or intra-State), invoice level details
should be uploaded in Table 5;
ii. For all inter-state B to C supplies, where invoice value is more than Rs.
2,50,000/- (B to C Large) invoice level detail to be provided in Table 6; and
iii. For all B to C supplies (whether inter-State or intra-State) where invoice value
is up to Rs. 2,50,000/- State-wise summary of supplies shall be filed in Table 7.
8. Table 8 consists of amendments in respect of -
i. B2B outward supplies declared in the previous tax period;
ii. “B2C inter-State invoices where invoice value is more than 2.5 lakhs” reported in the previous
tax period; and
iii. Original Debit and credit note details and its amendments.
9. Table 9 covers the Amendments in respect of B2C outward supplies other than inter-State supplies
where invoice value is more than Rs 250000/-.
10. Table 10 consists of tax liability on account of outward supplies declared in the current tax period
and negative ITC on account of amendment to import of goods in the current tax period.
On submission of GSTR-5, System shall compute the tax liability and ITC will be posted to the
respective ledgers.





Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 112 of 147
Form GSTR-6
[See Rule…..]
Return for input service distributor


Year
Month

1. GSTIN
2. (a) Legal name of the registered person
(b) Trade name, if any

3. Input tax credit received for distribution (Amount in Rs. for all
Tables)

4. Total ITC/Eligible ITC/Ineligible ITC to be distributed for tax period (From Table No. 3)

5. Distribution of input tax credit reported in Table 4
GSTIN of recipient/State, if
recipient is unregistered
ISD invoice Distribution of ITC by ISD
No. Date Integrated Tax Central Tax State / UT
Tax
CESS
1 2 3 4 5 6 7
5A. Distribution of the amount of eligible ITC

5B. Distribution of the amount of ineligible ITC


GSTIN
of
supplier
Invoice details Rate Taxable
value
Amount of Tax
No Date Value Integrated tax Central Tax State / UT
Tax
CESS
1 2 3 4 5 6 7 8 9 10

Description Integrated tax Central Tax State / UT Tax CESS
1 2 3 4 5
(a) Total ITC available for distribution
(b) Amount of eligible ITC
(c) Amount of ineligible ITC
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 113 of 147
6. Amendments in information furnished in earlier returns in Table No. 3

7. Input tax credit mis-matches and reclaims to be distributed in the tax period

Description Integrated
tax
Central
Tax
State/
UT Tax
Cess
1 2 3 4 5
7A. Input tax credit mismatch
7B. Input tax credit reclaimed on rectification of
mismatch


8. Distribution of input tax credit reported in Table No. 6 and 7 (plus / minus)
GSTIN of
recipient
ISD credit no. ISD invoice Input tax distribution by ISD
No. Date No. Date Integrated
Tax
Central
Tax
State Tax CESS
1 2 3 4 5 6 7 8 9
8A. Distribution of the amount of eligible ITC
8B. Distribution of the amount of ineligible ITC

9. Redistribution of ITC distributed to a wrong recipient (plus / minus)

Original input tax credit distribution Re-distribution of input tax credit to the correct recipient
GSTIN
of
original
recipient
ISD invoice
detail
ISD credit
note
GSTIN
of new
recipient
ISD
invoice
Input tax credit redistributed
No. Date No Date No. Date Integrated
Tax
Central
Tax
State
Tax
CESS
1 2 3 4 5 6 7 8 9 10 11 12
9A. Distribution of the amount of eligible ITC

9B. Distribution of the amount of ineligible ITC

Original details Revised details
GSTIN
of
supplier
No. Date GSTIN
of
supplier

Invoice/debit
note/credit note
details
Rate Taxable
value
Amount of Tax
No Date Value Integrated
tax
Central
Tax
State /
UT Tax
CESS
1 2 3 4 5 6 7 8 9 10 11 12 13
6A. Information furnished in Table 3 in an earlier period was incorrect

6B. Debit Notes/Credit Notes received [Original]

6C. Debit Notes/Credit Notes [Amendments]
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 114 of 147
10. Late Fee
On account of Central Tax State / UT tax Debit Entry No.
1 2 3 4
Late fee
11. Refund claimed from electronic cash ledger
Description Fee Other Debit Entry Nos.
1 2 3 4
(a) Central Tax
(b) State/UT Tax
Bank Account Details (Drop Down)

Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my
knowledge and belief and nothing has been concealed therefrom.
Signature of Authorized Signatory ……………………………
Place Name of Authorized Signatory ….……………………
Date Designation /Status……………………………………
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 115 of 147
Instructions:-
1. Terms Used :-
a. GSTIN :- Goods and Services Tax Identification Number
b. ISD :- Input Service Distributor
c. ITC: - Input tax Credit.

2. GSTR 6 can only be filed only after 10th of the month and before 13th of the month succeeding the
tax period.
3. ISD details will flow to Part B of GSTR-2A of the Registered Recipients Units on filing of GSTR
6.
4. ISD will not have any reverse charge supplies. If ISD wants to take reverse charge supplies, then
in that case ISD has to separately register as Normal taxpayer.
5. ISD will have late fee and any other liability only.
6. ISD has to distribute both eligible and ineligible ITC to its Units in the same tax period in which
the inward supplies have been received.
7. Ineligible ITC will be in respect of supplies made as per Section 17(5).
8. Mismatch liability between GSTR-1 and GSTR-6 will be added to ISD and further ISD taxpayer
has to issue ISD credit note to reduce the ITC distributed earlier to its registered recipients units.
9. Table 7 in respect of mismatch liability will be populated by the system.
10. Refund claimed from cash ledger through Table 11 will result in a debit entry in electronic cash
ledger.

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 116 of 147
Form GSTR-6A
[See Rule…..]
Details of supplies auto-drafted from
(Auto-drafted from GSTR-1)

Year
Month
1. GSTIN
2. (a) Legal name of the registered person
(b) Trade name, if any

3. Input tax credit received for distribution
(Amount in Rs. for all
Tables)

4. Debit / Credit notes (including amendments thereof) received during current tax period





GSTIN
of supplier
Invoice details Rate Taxable
value
Amount of Tax
No Date Value Integrated tax Central Tax State / UT Tax Cess
1 2 3 4 5 6 7 8 9 10

Details of original document Revised details of document or details of Debit / Credit Note
GSTIN of
supplier
No. Date GSTIN
of
supplier
No. Date Value Rate Taxable
value
Amount of tax
Integrated
tax
Central
Tax
State /
UT Tax
Cess
1 2 3 4 5 6 7 8 9 10 11 12 13

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 117 of 147
Form GSTR-7
[See Rule…]

Return for Tax Deducted at Source
Year
Month

1. GSTIN
2. (a) Legal name of the Deductor Auto Populated
(b) Trade name, if any Auto Populated

3. Details of the tax deducted at source
(Amount in Rs. for all
Tables)

GSTIN
of deductee
Amount paid to deductee on which tax
is deducted
Amount of tax deducted at source
Integrated Tax Central Tax State/UT Tax
1 2 3 4 5

4. Amendments to details of tax deducted at source in respect of any earlier tax period
Original details Revised details
Month GSTIN of
deductee
Amount paid to
deductee on
which tax is
deducted
GSTIN
of
deductee
Amount paid to
deductee on which
tax is deducted
Amount of tax deducted at source
Integrated
Tax
Central
Tax
State/UT
Tax
1 2 3 4 5 6 7 8

5. Tax deduction at source and paid
Description Amount of tax deducted Amount paid
1 2 3
(a) Integrated Tax
(b) Central Tax
(c) State/UT Tax

6. Interest, late Fee payable and paid

Description Amount payable Amount paid
1 2 3
(I) Interest on account of TDS in respect of
(b) Integrated tax
(b) Central Tax
(c) State/UT Tax
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 118 of 147
(II) Late fee
(a) Central tax
(b) State / UT tax

7. Refund claimed from electronic cash ledger

Description Tax Interest Penalty Fee Other Debit Entry Nos.
1 2 3 4 5 6 7
(a) Integrated Tax
(b) Central Tax
(c) State/UT Tax
Bank Account Details (Drop Down)

8. Debit entries in electronic cash ledger for TDS/interest payment [to be populated after payment of
tax and submissions of return]

Description Tax paid in cash Interest Late fee
1 2 3 4
(b) Integrated Tax
(b) Central Tax
(c) State/UT Tax

Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best
of my knowledge and belief and nothing has been concealed therefrom.

Signature of Authorized Signatory ……………………………
Place: Name of Authorized Signatory ….……………………
Date: Designation /Status……………………………………

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 119 of 147
Instructions –
1. Terms used:
a) GSTIN: Goods and Services Tax Identification Number
b) TDS: Tax Deducted at Source
2. Table 3 to capture details of tax deducted.
3. Table 4 will contain amendment of information provided in earlier tax periods.
4. Return cannot be filed without full payment of liability.
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 120 of 147
Form GSTR 7A
[See Rule ----]
Tax Deduction at Source Certificate

1. TDS Certificate No. –

2. GSTIN of deductor –

3. Name of deductor –

4. GSTIN of deductee–

5. (a) Legal name of the deductee -
(b) Trade name, if any –

6. Tax period in which tax deducted and accounted for in GSTR-7 –

7. Amount of tax deducted -









Note –
The certificate is generated on the basis of information furnished by deductor in return filed in Form
GSTR-7.






Amount of Tax deducted at source (Rs.)
Integrated
Tax
Central Tax State /UT
Tax


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 121 of 147

Form GSTR - 8
[See Rule ----]

Statement for tax collection at source

Year
Month

1. GSTIN
2. (a) Legal name of the registered person Auto Populated
(b) Trade name, if any Auto Populated

3. Details of supplies made through e-commerce operator
(Amount in Rs. for all Tables)
GSTIN of
the
supplier
Details of supplies made which attract TCS Amount of tax collected at source
Gross value of
supplies made
Value of
supplies
returned
Net amount liable
for TCS
Integrated Tax Central Tax State /UT Tax
1 2 3 4 5 6 7
3A. Supplies made to registered persons

3B. Supplies made to unregistered persons

4. Amendments to details of supplies in respect of any earlier statement
Original details Revised details
Month GSTIN
of
supplier
GSTIN
of
supplier
Details of supplies made which attract
TCS
Amount of tax collected at source
Gross value
of supplies
made
Value of
supply
returned
Net
amount
liable for
TCS
Integrated
Tax
Central
Tax
State/UT Tax
1 2 3 4 5 6 7 8 9
4A. Supplies made to registered persons

4B. Supplies made to unregistered persons


5. Details of interest
On account of Amount in
default
Amount of interest
Integrated Tax Central Tax State /UT Tax
1 2 3 4 5
Late payment of TCS amount


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 122 of 147

6. Tax payable and paid
Description Tax payable Amount paid
1 2 3
Integrated Tax
Central Tax
State / UT Tax

7. Interest payable and paid

Description Amount of tax collected Amount paid
1 2 3
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax

8. Refund claimed from electronic cash ledger

Description Tax Interest Penalty Other Debit Entry Nos.
1 2 3 4 5 6
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax
Bank Account Details (Drop Down)

9. Debit entries in cash ledger for TCS/interest payment [to be populated after payment of tax and
submissions of return]
Description Tax paid in cash Interest
1 2 3
(a) Integrated tax
(b) Central Tax
(c) State/UT Tax

Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the
best of my knowledge and belief and nothing has been concealed therefrom.

Signature of Authorized Signatory
……………………………
Place: Name of Authorized Signatory ….……………………
Date: Designation /Status……………………………………

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 123 of 147
Instructions:-
1. Terms Used :-
a. GSTIN :- Goods and Services Tax Identification Number
b. TCS :- Tax Collected at source

2. An e-commerce operator can file GSTR- 8 only when full TCS liability has been discharged.

3. TCS liability will be calculated on the basis of table 3 and table 4.

4. Refund from electronic cash ledger can only be claimed only when all the TCS liability for that
tax period has been discharged.
5. Cash ledger will be debited for the refund claimed from the said ledger.
6. Amount of tax collected at source will flow to Part C of GSTR- 2A of the taxpayer on filing of
GSTR-8.
7. Matching of Details with supplier’s GSTR-1 will be at the level of GSTIN of supplier.





Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 124 of 147
Form GSTR -11
[See Rule ----]

Statement of inward supplies by persons having Unique Identification Number (UIN)

Year
Month


1
.
UIN
2. Name of the person having
UIN
Auto
populated

3. Details of inward supplies received
(Amount in Rs. for all Tables)

4. Refund amount


Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to
the best of my knowledge and belief and nothing has been concealed therefrom.

Place Signature
Name of Authorized Signatory ….………
Date
Designation /Status……………………

GSTIN
of
supplier
Invoice/Debit
Note/Credit Note
details
Rate Taxable
value
Amount of Tax
No Date Value Integrated
tax
Central
Tax
State/
UT Tax
CESS
1 2 3 4 5 6 7 8 9 10
3A. Invoices received


3B. Debit/Credit Note received
Integrated tax Central Tax State/UT Tax CESS
1 2 3 3
Bank details (drop down)
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 125 of 147
Instructions:-
1. Terms Used :-
a. GSTIN :- Goods and Services Tax Identification Number
b. UIN :- Unique Identity Number

2. UIN holder has to file GSTR-11 for claiming refund on quarterly basis or otherwise as and when required
to file by proper officer.
3. Table 3 of GSTR 11 will be populated from GSTR-1.
4. UIN holder will not be allowed to add or modify any details in GSTR-11.



















Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 126 of 147


DRAFT
GOODS AND SERVICES TAX RULES, 2017
GOODS AND SERVICE TAX PRACTITIONER FORMS





List of Goods and Service Tax Forms
Sr. No. Form No. Description
1. GST PCT - 1
Application for Enrolment as Goods and Service Tax Practitioner
2.
GST PCT-02

Enrolment Certificate for Goods and Service Tax Practitioner
3.
GST PCT-03
Show Cause Notice for disqualification
4.
GST PCT-04
Order of Rejection of Application for enrolment as GST Practitioner/ Or
Disqualification to function as GST Practitioner
5. GST PCT-05
Authorization/withdrawal of authorization of Goods and Service Tax
Practitioner.


Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 127 of 147

Form GST PCT - 1
[See Rule --- ]
Application for Enrolment as Goods and Services Tax Practitioner
Part –A
State /UT – District -
(i) Name of the Goods and Services Tax Practitioner
(As mentioned in PAN)

(ii) PAN
(iii) Email Address
(iv) Mobile Number
Note - Information submitted above is subject to online verification before proceeding to fill up Part-B.

PART B
1. Enrolling Authority Centre
State
2. State/UT
3. Date of application
4 Enrolment sought as:
(1) Chartered Accountant holding COP
(2) Company Secretary holding COP
(3) Cost and Management Accountant holding COP
(4) Advocate
(5) Graduate or Postgraduate degree in Commerce
(6) Graduate or Postgraduate degree in Banking
(7) Graduate or Postgraduate degree in Business
Administration
(8) Graduate or Postgraduate degree in Business
Management
(9) Degree examination of any recognized Foreign
University
(10) Retired Government Officials
5. Membership Number
5.1 Membership Type (drop down will
change based the institute selected )
5.1 Date of Enrolment / Membership
5.2 Membership Valid upto
6 Advocates registered with Bar (Name of
Bar Council)
6.1 Registration Number as given by Bar
6.2 Date of Registration
6.3 Valid up to
7 Retired Government Officials Retired from Centre/ State
7.1 Date of Retirement
7.2 Designation of the post held at the time of
retirement
Scanned copy of Pension Certificate issued by AG office or
any other document evidencing retirement
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 128 of 147
8. Applicant Details
8.1 Full name as per PAN
8.2 Father’s Name
8.3 Date of Birth
8.4 Photo
8.5 Gender
8.6 Aadhaar <optional>
8.7 PAN < Pre filled from Part A>
8.8 Mobile Number <Pre filled from Part A>
8.9 Landline Number
8.10 Email id < Pre filled from Part A>
9. Professional Address (Any three will be mandatory)
9.1 Building No./ Flat No./ Door No.
9.2 Floor No.
9.3 Name of the Premises / Building
9.4 Road / Street Lane
9.5 Locality / Area / Village
9.6 District
9.7 State
9.8 PIN Code
10. Qualification Details
10.1 Qualifying Degree
10.2 Affiliation University / Institute
Consent
I on behalf of the holder of Aadhaar number <pre-filled based on Aadhaar number provided in the form>
give consent to “Goods and Services Tax Network” to obtain my details from UIDAI for the purpose of
authentication. “Goods and Services Tax Network” has informed me that identity information would only
be used for validating identity of the Aadhaar holder and will be shared with Central Identities Data
Repository only for the purpose of authentication.

Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best
of my knowledge and belief and nothing has been concealed therefrom.
Place < DSC /E-sign of the Applicant/EVC>
Date < Name of the Applicant>




Acknowledgment

Application Reference Number (ARN) –
You have filed the application successfully.
GSTIN, if available:
Legal Name:
Form No. :
Form Description :
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 129 of 147
Date of Filing:
Time of filing:
Center Jurisdiction:
State Jurisdiction :
Filed by :
Temporary reference number, (TRN) if any:
Place:
It is a system generated acknowledgement and does not require any signature.
Note - The status of the application can be viewed through “Track Application Status” at dash board on the GST Portal.
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 130 of 147

Form GST PCT-02
[See Rule ----]
Enrolment Certificate of Goods and Services Tax Practitioner

1. Enrolment Number
2. PAN
3. Name of the Goods and Services Tax Practitioner
4. Address and Contact Information
5. Date of enrolment as GSTP
Date Signature of the Enrolment
Authority
Name and Designation.
Centre / State



Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 131 of 147
Form GST PCT-03
[See Rule -----]
Reference No. Date
To
Name
Address of the Applicant
GST practitioner enrolment No.

Show Cause Notice for disqualification

It has come to my notice that you are guilty of misconduct, the details of which are given hereunder:
1.
2.

You are hereby called upon to show cause as to why the certificate of enrolment granted to you should not
be rejected for reasons stated above. You are requested to submit your response within <15> days to the
undersigned from the date of receipt of this notice.
Appear before the undersigned on ----- (date)…………. (Time)………

If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed
date and time, the case will be decided ex parte on the basis of available records and on merits

Signature
Name
(Designation)




Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 132 of 147
Form GST PCT-04
[See Rule ------]
Reference No. Date-

To
Name
Address
Enrollment Number
Order of rejection of enrolment as GST Practitioner
This has reference to your reply dated ---- in response to the notice to show cause dated -----.
- Whereas no reply to notice to show cause has been submitted; or
- Whereas on the day fixed for hearing you did not appear; or
- Whereas the undersigned has examined your reply and submissions made at the time of hearing, and is of the
opinion that your enrolment is liable to be cancelled for following reason(s).
1.
2.
The effective date of cancellation of your enrolment is <<DD/MM/YYYY >>.

Signature
Name
(Designation)



Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 133 of 147
Form GST PCT-05
[See Rule ---------]
Authorisation / withdrawal of authorisation for Goods and Services Tax Practitioner
To
The authorized officer
Central Tax/State Tax.
PART-A
Sir/Madam
I/We <Name of the Proprietor/all Partners/Karta/Managing Directors and whole time Director/Members
of Managing Committee of Associations/Board of Trustees etc.) do hereby
1. *solemnly authorize,
2. *withdraw authorization of
----------- (Name of the Goods and Services Tax Practitioner), bearing Enrolment Number-------- for the
purposes of Section 48 read with rule 24.Return to perform the following activities on behalf of --------
(Legal Name) bearing << GSTIN - >>:

Sr.
No.
List of Activities Check box
1. To furnish details of outward and inward supplies
2. To furnish monthly, quarterly, annual or final return
3. To make deposit for credit into the electronic cash ledger
4. To file an application for claim of refund
5. To file an application for amendment or cancellation of registration
2. The consent of the ---------- (Name of Goods and Services Tax Practitioner) is attached herewith*.
*Strike out whichever is not applicable.

Signature of the authorized signatory
Name

Designation/Status
Date
Place
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 134 of 147
Part -B
Consent of the Goods and Services Tax Practitioner

I <<(Name of the Goods and Services Tax Practitioner>>< Enrolment Number> do hereby solemnly accord my
consent to act as the Goods and Services Tax Practitioner on behalf of ------ (Legal name), GSTIN ……….. only
in respect of the activities specified by ------ (Legal name), GSTIN ………..

Signature
Name
Date Enrolment No.





















Detailed Agenda Notes 1 - Agenda for 15th GSTCM
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Results of Matching after filing of the Returns of September (to be filed by 20th October)
Month
Bill of Entry No. /Invoice/Debit
Note/Credit Note ITC/Output Liability Interest
Date Number Taxable Value Integrated Central
State
/ UT Cess Integrated Central State Cess
A. Finally Accepted Input Tax Credit
A.1 Details of Invoices, Debit and Credit Notes of the month of September that have matched
1 September Nil
2 Septmeber Nil
A.2 Details of Invoices, Debit and Credit Notes of the month of August that were found to have mismatched in the return of the month of August filed
by 20th September but mismatch was rectified in the return for the month of September filed by 20th October
1 August Nil
2 August Nil
A.3 Details of Invoices, Debit and Credit Notes of the month of July and before but not earlier than April of the previous Financial Year which had
become payable but the pairing supplier/recipient has included the details of corresponding document in his return of the month of September
filed by 20th October and the reclaim is being allowed alongwith refund of interest.
1 Month Refund
2 Month Refund
B. Mismatches/Duplicates that have led to increase of liability in the return for September filed by 20th October
B.1 Details of Invoices, Debit and Credit Notes of the month of July that were found to have mismatched in the return of the month of July filed by
20th August but mismatch was not rectified in the return for the month of August filed by 20th September and have become payable in the return
for month of September to be filed 20th October
1 July Two Months
2 July Two Months
B.2 Details of Invoices, Debit and Credit Notes of the month of August that were found to be duplicates and have become payable in the return
September filed by 20th October
1 August One Month
2 August One Month
B.3 Details of Invoices, Debit and Credit Notes of the month of August where reversal was reclaimed in violation of Section 42/ 43 and that have
become payable in the return of September filed by 20th October
1 August One Month-high
2 August One Month-high
C. Mismatches/Duplicates that will lead to increase of liability in the return for October to be filed by 20th November
C.1 Details of Invoices, Debit and Credit Notes of the month of August that were found to have mismatched in the return of the month of
August filed by 20th September but mismatch was not rectified in the return for the month of September filed by 20th October and
will become payable in the return for month of October to be filed 20th November
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
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1 August Two Months
2 August Two Months
C.2 Details of Invoices, Debit and Credit Notes of the month of September that were found to be duplicate and will be become payable in the return
for October to be filed by 20th November
1 September One Month
2 September One Month
C.3 Details of Invoices, Debit and Credit Notes of the month of September where reversal was reclaimed in violation of Section 42/43 and that will
become payable in the return of October return to be filed by 20th November
1 September One Month-high
2 September One Month-high
D. Mismatches/Duplicates that may lead to increase of liability in the return for November to be filed by 20th December
D.1 Details of Invoices, Debit and Credit Notes of the month of September that have been found to have mismatched and may become payable in the
return for November to be filed by 20th December in case mismatch not rectified in the return for October to be filed by 20th November
1 September Nil/Two Months
2 September Nil/Two Months

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Agenda Item 5: Concept note on operationalizing the Anti-Profiteering Clause in GST
Law

Notifying Provisions related to Anti-profiteering
Section 171 of the Central Goods and Services Tax Act, 2017 (CGST Act) requires that
any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit
is passed on to the recipient by way of commensurate reduction in prices. This section also
provides for constitution of an Authority or empowering any existing Authority to examine
that reduction in effective tax incidence is passed on next in the supply chain.
2. In the 14th meeting of the GST Council on 18th and 19th May, 2017, the tax rates for
most of goods and services have been finalized. The rates recommended by the Council have
been placed in the public domain. Based on the recommended rates, businesses are now in a
position to estimate the likely prices in the GST regime.
3. In this background, it is essential that steps to notify section 171 of the CGST Act are
taken so that an Authority can be constituted which can monitor the present prices and possible
impact of tax rates recommended by the Council on prices under GST.
4. Further the Anti-Profiteering Rules have also been drafted which are submitted for
consideration and approval of the Council.
5. It may be mentioned that 23 States (list placed as Annexure-A) have already passed the
respective SGST Acts till 31 May, 2017 but it appears that they are yet to be notified. Thus,
the Rules would have to be notified under CGST Act, 2017 and such Rules would be deemed
to be notified under SGST Act and UTGST Act as and when such Acts are notified.
6. It is proposed that the Council may kindly approve notifying section 171 of the CGST
Act from 19th June, 2017 and also approve the draft Anti-Profiteering Rules. After getting the
approval, the draft Anti-Profiteering Rules would be put in public domain & finalised after
getting views of public. It would then be brought back to the Council.

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
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Annexure-A
States that have passed SGST Acts as on 31 May 2017
1. Telangana
2. Bihar
3. Rajasthan
4. Jharkhand
5. Chhattisgarh
6. Uttarakhand
7. Madhya Pradesh
8. Haryana
9. Goa
10. Gujarat
11. Assam
12. Arunachal Pradesh
13. Andhra Pradesh
14. Uttar Pradesh
15. Puducherry
16. Odisha
17. Maharashtra
18. Sikkim
19. Tripura
20. Mizoram
21. Nagaland
22. Himachal Pradesh
23. Delhi
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
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Anti-profiteering Rules, 2017

In exercise of the powers conferred by section 164 read with sub-section (3) of section 171 of
the Central Goods and Service Tax Act, 2017(12 of 2017) the Central Government here by
makes the following rules, namely :-
1. Short title, extent and commencement. -
(i) These rules may be called the Anti-profiteering Rules, 2017.
(ii) They extend to the whole of India except the State of Jammu and Kashmir.
(iii) They shall come into force on the date of their publication in the Official
gazette.
2. Definitions. -
In these rules, unless the context otherwise requires,-
(a) “Act” means the Central Goods and Service Tax Act, 2017;
(b) “Authority” means the National Anti-profiteering Authority constituted under sub-
section (2) of section 171 of the Act.
(c) “Committee” means Standing Committee on Anti-profiteering constituted by the
Council in terms of rule 13 of these rules.
(d) “Interested party” includes-
(i) supplier of goods or services under the proceedings;
(ii) recipients of goods or services under the proceedings;
(iii) trade or business association(s) concerned with goods or services under the
proceedings; and
(iv) consumer associations;
(e) Words and expressions used and not defined herein but defined in the Act, shall have
the same meaning respectively, assigned to them, in the Act.
3. Power to determine procedure in certain circumstances. - In a situation not provided
for in these rules, the Authority may determine the procedure of proceedings in any
specific matter, if so required.
4. Power to determine the methodology and the accounting period. - Subject to the
provisions of these rules, the Authority may determine the methodology and the
accounting period for determination of whether a registered person has passed on the
reduction in rate of tax on the supply of goods or services or the benefit of input tax
credit to the recipient by way of commensurate reduction in prices.

5. Duties of the Authority. -Subject to the provisions of these rules, it shall be the duty
of the Authority, -
(1) to determine whether any reduction in rate of tax on any supply of goods or
services or the benefit of the input tax credit has been passed on to the recipient
by way of commensurate reduction in prices or not;
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 140 of 147
(2) to identify the registered person who has not passed on to the recipient the
reduction in rate of tax on its supply or the benefit of the input tax credit by way
of commensurate reduction in prices;
(3) to recommend,
(i) reduction in prices;
(ii) return of the amount equivalent to the amount not passed on to the
recipient by way of commensurate reduction in prices to the recipient
along with eighteen percent of interest; or
(iii) recovery of the amount not returned under clause (ii) and depositing
the same in the Fund referred to in section 57 of the Act.
6. Initiation of proceedings. -
(1) Except as provided in sub-rule (4), the Authority shall, on receipt of a written
application, initiate proceedings to determine whether any reduction in rate of
tax on any supply of goods or services or the benefit of the input tax credit has
been passed on to the recipient by way of commensurate reduction in prices.
(2) An application under sub-rule (1), shall be in the form, as may be specified by
the Authority in this behalf and such application shall be supported by prima-
facie evidence to support the claim that a reduction in rate of tax on any supply
of goods or services or the benefit of the input tax credit has not been passed on
to the recipient by way of commensurate reduction in prices.
(3) The Authority shall not initiate the proceedings pursuant to an application under
sub-rule (1) unless it examines the accuracy and adequacy of the evidence
provided in the application; satisfies itself that there is a prima-facie evidence
of not passing on the reduction in rate of tax on the supply of goods or services
or the benefit of input tax credit by way of commensurate reduction in prices
and also receives recommendation from the Committee to initiate the
proceedings.
(4) Notwithstanding anything contained in sub-rule (1), the Authority may initiate
proceedings suo motu if it is satisfied with the information received from any
Commissioner or any other source that sufficient evidence exists as referred to
in sub-rule (3).

7. Principles governing the proceedings. -
(1) The Authority shall, after it has decided to initiate the proceedings issue a public
notice notifying its decision there to. The public notice shall, inter alia, contain
adequate information on the following, namely: -
(i) the description of the goods or services in respect of which the
proceedings have been initiated;
(ii) the name and addresses of registered person(s) against whom the
proceedings have been initiated;
(iii) date of initiation of the proceedings;
(iv) summary of statement of facts on which the allegations are based;
(v) the address to which the representation by the interested parties should
be directed;
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 141 of 147
(vi) the time limit allowed to the interested parties for making their views
known.
(2) A copy of the public notice shall be placed by the Authority on the website
notified by the Authority for this purpose and shall also be forwarded to the
Department of Consumer Affairs and other interested parties.
(3) The Authority shall provide a copy of the application referred to in sub-rule (1)
of rule 6 to-
(i) the known suppliers of goods or services under the proceedings;
(ii) the concerned trade associations; and
(iii) the known associations engaged in the protection of consumers’ interest;
Provided that the Authority may also make available a copy of the application,
upon request in writing, to any other interested party, after due examination.
(4) the Authority may issue a notice calling for any information in such form as
may be specified by it from the suppliers or recipients of goods or services
covered under the proceedings or the registered person who may have
information related to the proceedings initiated and such information shall be
furnished by such persons in writing within fifteen days from the date of receipt
of the notice or within such extended period not exceeding further fifteen days
as the Authority may allow on sufficient cause being shown.
(5) The Authority may require the Directorate General of Goods and Service Tax
Intelligence (DGI) or any other agency notified by the Government or State
Government to conduct investigation to collect evidence necessary to determine
whether any reduction in rate of tax on any supply of goods or services or the
benefit of the input tax credit has been passed on to the recipient by way of
commensurate reduction in prices.
(6) The Authority shall also provide opportunity to the concerned supplier or
recipient of goods or services under the proceedings or registered person
alleged to have violated the Anti-profiteering provisions; consumer
associations and other interested parties.
(7) The Authority may allow an interested party or its representative to present the
information relevant to the proceedings orally but such oral information shall
be taken into consideration by the Authority only when it is subsequently
submitted in writing or recorded by the Authority in writing.
(8) The Authority shall make available the evidence presented to it by one
interested party to the other interested parties, participating in the proceedings.
(9) In case where an interested party refuses access to or otherwise does not provide
necessary information within a reasonable period or significantly impedes the
proceedings, the Authority may recommend as it deems fit under such
circumstances on the basis of the facts available before it.
8. Confidential Information. -
(1) Notwithstanding anything contained in sub-rules (1), (3) and (8) of rule 7 and
sub-rule (2) of rule 12, any information which is confidential by nature or which
is provided on a confidential basis shall, upon cause being shown, be treated as
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 142 of 147
such by the Authority and shall not be disclosed without specific authorization
of the party providing such information.
(2) The Authority may require the parties providing information on confidential
basis to furnish non-confidential summary thereof and if, in the opinion of the
party providing such information, such information cannot be summarised, such
party may submit to the Authority a statement of reasons why summarisation is
not possible.
(3) Notwithstanding anything contained in sub-rule (2), if the Authority is satisfied
that the request for confidentiality is not warranted or the supplier of the
information is unwilling either to make the information public or to authorise
its disclosure in a generalized or summary form, he may disregard such
information unless it is demonstrated to his satisfaction from appropriate
sources that such information is correct.
9. Cooperation with other agencies or statutory authorities. -Where the Authority
deems fit, it may seek opinion of any other agencies or statutory Authorities in
discharge of its duties.
10. Power to summon persons to give evidence and produce documents. -
(1) Members of the Authority shall be deemed to be the proper officer to exercise
power to summon any person whose attendance it considers necessary either to
give evidence or to produce a document or any other thing under section 70 of
the Act and shall have power in any inquiry in the same manner, as provided in
the case of a civil court under the provisions of the Code of Civil Procedure,
1908 (5 of 1908).
(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a
“judicial proceedings” within the meaning of section 193 and section 228 of the
Indian Penal Code (45 of 1860).
11. Decision to be by majority. -If the Members of the Authority differ in opinion on any
point, the point shall be decided according to the opinion of the majority.
12. Recommendation of the Authority. -
(1) The Authority shall, within three months of initiation of the proceedings or
within such extended period as the Board may allow, determine whether a
registered person has passed on the reduction in rate of tax on the supply of
goods or services or the benefit of input tax credit to the recipient by way of
commensurate reduction in prices.
(2) Where the Authority determines that a registered person has not passed on the
reduction in rate of tax on the supply of goods or services or the benefit of input
tax credit to the recipient by way of commensurate reduction in prices, the
Authority may recommend-
(i) the reduction in prices;
(ii) return of the amount equivalent to the amount not passed on to the
recipient by way of commensurate reduction in prices to the recipient
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 143 of 147
along with simple interest calculated at the annual interest rate of
eighteen percent;
(iii) recovery of the amount including the interest recommended to be
returned under clause (ii) but not returned within thirty days and such
recovered amount to be deposited in the Fund referred to in section 57
of the Act; and
(iv) imposition of penalty as prescribed under the Act.
13. Constitution of the Standing Committee. -
(1) The Council may constitute a Committee, namely Standing Committee on
Anti-profiteering.
(2) The Committee shall consist of such Officers of the Central Government or
State Government as nominated by the Council.
(3) The Committee shall be authorised to pass such order so as to implement section
171 of the Act.
14. Order of the Committee. - The Committee may, based on the determination and
recommendations made by the Authority, pass such orders as it deems fit to implement
the section 171 of the Act with the prior approval of the Council.
Provided that the Council may allow the Committee to pass orders without
prior approval of the Council, if it is within the threshold prescribed by the Council.

15. Appeal before the High Court. - Orders under these rules shall be appealable in the
High Court.
16. Compliance by the registered person. -Any order passed by the Committee under the
rules shall be immediately complied with by the registered person failing which the
proper officer shall proceed to recover the amount under provisions of the Act.

17. Monitoring of the order. -
(1) The Authority may require the Directorate General of Goods and Service Tax
Intelligence (DGI) or any other agency notified by the Government or State
Government to
(i) monitor implementation of the Order passed by the Committee;
(ii) monitor whether a registered person continues passing on the reduction
in rate of tax on the supply of goods or services or the benefit of input
tax credit to the recipient by way of commensurate reduction in prices;
and
(iii) conduct market survey with the help of professional survey agencies to
find the impact of reduction in rate of tax on the supply of goods or
services or grant of the benefit of input tax credit on prices.

***


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Agenda Item 6: Any other agenda item with the permission of the Chairperson
(1) Applicability of GST on supply of Electricity
In the last GST Council meeting held on 18-19 May, 2017, a point was raised on whether
supply of “electricity” would come within the ambit of GST or not. This matter has been
examined in the following paragraphs.
2. In this regard, attention is drawn to the following definitions/clauses of Article 366 of
the Constitution:
a. 366 (12A) “goods and services tax” means any tax on supply of goods, or services or
both except taxes on the supply of the alcoholic liquor for human consumption”
b. 366 (12) “goods” includes all materials, commodities and articles
c. 366 (26A) “services” means anything other than good.
3. Further, vide the Constitution (One Hundred and First Amendment) Act, 2016, erstwhile
Entry 52 of List – II (State List) of the Seventh Schedule to the Constitution, has been deleted.
Entry 52 empowered the State Governments to levy taxes on the entry of goods into a local
area for consumption, use or sale therein. Also, Entry 54 of List – II (State List) of the Seventh
Schedule to the Constitution has been restricted to taxes on intra-State sale of petroleum
products and alcoholic liquor for human consumption. Further, Entry 62 of List – II (State List)
of the Seventh Schedule to the Constitution has been restricted to taxes on entertainment and
amusement to the extent levied and collected by the Panchayat or the Municipality or the
Regional Council or the District Council.
4. In addition, it may be mentioned that taxes on consumption or sale of “electricity” is provided
for as a separate Entry 53 of List – II (State List) of the Seventh Schedule to the Constitution
and it reads as follows:
“53. Taxes on the consumption or sale of electricity”
5. Further, it may be noted that the Hon’ble Supreme Court in a number of decisions has held
that “electricity” falls under the category of “goods”.
6. Given the above Constitutional provisions and the observations of the Hon’ble Supreme
Court, a view needed to be taken as to whether GST would be applicable on supply of
“electricity” or not. A reference in this regard was made to the Union Ministry of Law.
7. The Union Ministry of Law has opined that having a separate Entry on “electricity” in the
State List does not preclude electricity from being under the ambit of GST. With this
interpretation, any GST imposed on supply of “electricity” at any later date would be over and
above any tax imposed on consumption or sale of “electricity” by any State under Entry 53 of
the State List. This will be similar to treatment of tobacco under the Constitution, as amended
by Constitution (One Hundred and First Amendment) Act 2016, wherein by virtue of Entry 84
of Union List, the Union Government has powers to impose Excise Duty on tobacco and
tobacco products over and above any GST which may be imposed on supply of tobacco and
tobacco products, since tobacco as a “good” has been subsumed under GST.
8. In light of the observations made by the Union Ministry of Law, it is proposed that the GST
Council may recommend that the supply of “electricity” be exempted from the levy of GST.
Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 145 of 147
Agenda Item 6: Any other agenda item with the permission of the Chairperson
(2) Notifying Provisions related to Composition Levy
Section 10 of the CGST Act, 2017 (CGST Act) provides that a registered person, whose
aggregate turnover in the preceding financial year did not exceed Rs. 50 lac, may opt to pay
tax under composition levy. Under this option, a person can pay tax at an alternative rate on
the turnover. This provision has been made to reduce compliance cost for small taxpayers.
2. The taxpayers who are registered under the existing laws are being migrated to GST.
The process of migration had already started in November, 2016. Although majority of existing
taxpayers have already migrated to GST yet it has been proposed to open the migration process
for two more weeks from 1st June, 2017 so as to enable remaining taxpayers to migrate. The
migrated taxpayers have been allotted a provisional registration. At the time of giving Goods
and Services Tax Identification Number (GSTIN), the migrated taxpayer would be asked to
declare whether he wishes to avail composition scheme or not. In other words, an existing
taxpayer is required to declare, in advance, about option for composition levy. Further new
registrants would also be required to opt for composition scheme. In the 14th meeting of the
GST Council on 18th and 19th May, 2017, rules on composition levy, apart from other six rules,
have also been recommended by the Council.
3. In order to allow the facility for availing the option of composition levy to intending
migrated taxpayers, it is required that provisions related to composition levy are notified. This
would also enable notifying relevant rules on composition levy. The relevant section of the
CGST Act which is required to be notified is section 10 of the CGST Act on composition levy.
4. It may be mentioned that 23 States have already passed the respective SGST Acts till
31 May, 2017 but it appears that they are yet to be notified. Thus, benefit of composition levy
would have to be granted under CGST Act, 2017 and such option would be deemed to be
allowed under SGST Act and UTGST Act as and when such Acts are notified.
5. It is proposed that the Council may kindly approve notifying section 10 of the CGST
Act from 19th June, 2017.




Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 146 of 147
Agenda Item 6: Any other agenda item with the permission of the Chairperson
(3) Notifying Provisions related to Appointment of Officers
Section 3 of the Central Goods and Services Tax Act, 2017 (CGST Act) provides that
the Central Government shall, by notification, appoint the different classes of officers for the
purposes of the CGST Act. Section 4 of the CGST Act empowers the Board (Central Board of
Excise and Customs) to appoint officers as it may think fit in addition to the officers notified
by the Government under section 3. Section 5 of the CGST Act provides for powers of the
officers. Section 3 of the Integrated Goods and Services Tax Act, 2017 (IGST Act) provides
that the Board may appoint such central tax officers as it thinks fit for exercising the powers
under the IGST Act.
2. Sections 3, 4 and 5 of the CGST Act and section 3 of the IGST Act are required to
be notified so that officers can be appointed under the CGST and IGST Acts. This would
enable Central Government to notify the reorganisation of its field formations so that the new
formations are in place well before the appointed date.
4. Section 1 of CGST Act and IGST Act are also required to be notified so that these Acts
come into effect for notifying different provisions of the said Acts.
5. It is proposed that the Council may kindly approve notifying section 1, 3, 4 and 5 of the
CGST Act, 2017 and section 1 and 3 of the IGST Act, 2017 from 19th June, 2017.

Detailed Agenda Notes 1 - Agenda for 15th GSTCM
Page 147 of 147
Agenda Item 6: Any other agenda item with the permission of the Chairperson
(4) Notifying Provisions related to Registration
Sections 22 to 30 contained in Chapter VI of the Central Goods and Services Tax Act, 2017
(CGST Act) contain provisions for registration of taxpayers under GST. However, persons
already registered under the existing law (Central Excise, Service Tax, Value Added Tax,
Central Sales Tax etc.) are proposed to be migrated to GST through a simpler process so that
existing taxpayers are not required to apply for fresh registration for GST. The existing
taxpayer would be migrated under the provisions of section 139 of the CGST Act.
2. The process of migration of presently registered taxpayers had already started in
November, 2016. Although majority of existing taxpayers have already migrated to GST yet it
has been proposed to open the migration process for two more weeks from 1st June, 2017 so as
to enable remaining taxpayers to migrate. The migrated taxpayers have been allotted a
provisional registration. In the 14th meeting of the GST Council held on 18th and 19th May,
2017, rules on registration, apart from other six rules, have also been recommended by the
Council.
3. In order to issue registration certificate (Goods and Services Tax Identification Number
(GSTIN)) under the provisions of CGST to the migrated taxpayers, it is required that provisions
related to registration and transitional provisions on migration are notified. This would also
enable notifying the relevant rules on registration and migration. Further the procedure to grant
new registrations also needs to be started. The relevant chapters/sections of the CGST Act
which are required to be notified are chapter VI on registration containing sections from 22 to
30 and section 139 of the CGST Act on migration of existing taxpayers.
4. The Integrated Goods and Services Tax Act, 2017 (IGST Act) envisages under section
20 that provisions relating to registration and transition, among others, as in the CGST Act
shall, mutatis mutandis, apply to integrated tax. Therefore, section 20 of the IGST Act is also
required to be notified.
5. It may be mentioned that 23 States have already passed the respective SGST Acts till
31 May, 2017 but it appears that they are yet to be notified. Thus, issuance of registration
certificates to migrated taxpayers and fresh registrations to new taxpayers would have to be
granted under CGST Act, 2017 and such registrations would be deemed to be granted under
SGST Act and UTGST Act as and when such Acts are notified.
6. It is proposed that the Council may kindly approve notifying section 22 to 30 and
section 139 of the CGST Act and section 20 of the IGST Act from 19th June, 2017.

Detailed Agenda Notes 1 - Agenda for 15th GSTCM


Confidential






Agenda for
15th GST Council Meeting
Volume – 2




3 June 2017




Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 2 of 40

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 3 of 40

TABLE OF CONTENTS

Agenda
No.
Agenda Item Page No.
3 Approval of amendments to the draft GST Rules and related Forms
1. Transition Rules
2. Transition Forms

04
07

4 Finalization of the rates of tax and cess to be levied on commodities remaining after the Fitment
exercise in the 14th GST Council meeting
1. Brief note on Agenda No. 4
2. Cereals, pulses and flour put up in unit container and bearing a registered brand name
3. Puja samagri, including havan samagri
4. Definition of Handmade matches
5. Biscuits
6. Power driven Agricultural, horticultural, forestry, poultry keeping or bee-keeping
machinery, Harvesting or threshing machinery, machines for cleaning, sorting or
grading, machinery used in milling industry and parts thereof [8432, 8433, 8436 and
8437]:
7. Footwear – Ch. 64
8. Textiles – Ch. 50 to 63
9. Biri wrapper leaves and Biris
10. Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad
with precious metal, and articles thereof; imitation jewellery; coin – Ch. 71
11. GST tax treatment of Supplies to Canteen Stores Department [CSD], a Government of
India undertaking under the Union Ministry of Defence and Supplies from CSD and Unit
Run Canteens [URCs]:
12. Addendum to the GST rate Schedule for Goods [As per discussions in the GST Council
Meeting held on 18th May, 2017]

18
19
22
23
24

25

26
28
29

30

35

36
- Additional Agenda Item – e-Way Bills 39

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 4 of 40

Discussion on Agenda Items
Agenda Item 3: Approval of amendments to the draft GST Rules and related Forms
TRANSITIONAL PROVISIONS

1. Tax or duty credit carried forward under any existing law or on goods held in stock on the
appointed day
(1) Every registered person entitled to take credit of input tax under section 140 shall, within ninety days
of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the
Common Portal specifying therein, separately, the amount of input tax credit to which he is entitled under
the provisions of the said section:
Provided that the Commissioner may, on the recommendations of the Council, extend the period of ninety
days by a further period not exceeding ninety days.
Provided further that where the inputs have been received from an Export Oriented Unit or a unit located
in Electronic Hardware Technology Park, the credit shall be allowed to the extent as provided in sub-rule
(7) of rule 3 of the CENVAT Credit Rules, 2004:
[this proviso only in CGST rules]
Provided that in the case of a claim under sub-section (1) of section 140, the application shall specify
separately—
(i) the value of claims under section 3, sub-section (3) of section 5, sections 6 and 6A and sub-section (8)
of section 8 of the Central Sales Tax Act, 1956 made by the applicant and
(ii) the serial number and value of declarations in Forms C and/or F and Certificates in Forms E and/or
H or Form I specified in rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957
submitted by the applicant in support of the claims referred to in sub-clause (i) above;
(this proviso only in SGST rules)
(2) Every declaration under sub-rule (1) shall: -
(a) in the case of a claim under sub-section (2) of section140, specify separately the following particulars
in respect of every item of capital goods as on the appointed day-
(i) the amount of tax or duty availed or utilized by way of input tax credit under each of the existing
laws till the appointed day, and
(ii) the amount of tax or duty yet to be availed or utilized by way of input tax credit under each of
the existing laws till the appointed day;
(b) in the case of a claim under sub-section (3) or the proviso thereto or clause (b) of sub-section (4) or sub-
section (6) or sub-section (8) of section 140, specify separately the details of stock held on the appointed
day;
(c) in the case of a claim under sub-section (5) of section 140, furnish the following details—
(i) the name of the supplier, serial number and date of issue of the invoice by the supplier or any
document on the basis of which credit of input tax was admissible under the existing law,
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 5 of 40
(ii) the description and value of the goods or services,
(iii) the quantity in case of goods and the unit or unit quantity code thereof,
(iv) the amount of eligible taxes and duties or, as the case may be, the value added tax [or entry tax]
charged by the supplier in respect of the goods or services,
the date on which the receipt of goods or services is entered in the books of account of the
recipient.
(3) The amount of credit specified in the application in FORM GST TRAN-1 shall be credited to the
electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the Common Portal.

(4) (a) (i) A registered person who was not registered under the existing law shall, in accordance with the
proviso to sub-section (3) of section 140, be allowed to avail of input tax credit on goods (on which the
duty of central excise or, as the case may be, additional duties of customs under sub-section (1) of section
3 of Customs Tariff Act, 1975, is leviable) held in stock on the appointed day in respect of which he is not
in possession of any document evidencing payment of central excise duty.
(ii) Such credit shall be allowed at the rate of sixty per cent. on such goods which attract central tax at the
rate of nine per cent. or more and forty per cent. for other goods of the central tax applicable on supply of
such goods after the appointed date and shall be credited after the central tax payable on such supply has
been paid:
Provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at the rate
of thirty per cent. and twenty per cent. respectively of the said tax
(iii) The scheme shall be available for six tax periods from the appointed date.
(b) Such credit of central tax shall be availed subject to satisfying the following conditions, namely, -
(i) such goods were not unconditionally exempt from the whole of the duty of excise specified in the First
Schedule to the Central Excise Tariff Act, 1985 or were not nil rated in the said Schedule.
(ii) the document for procurement of such goods is available with the registered person.
(iii) the registered person availing of this scheme and having furnished the details of stock held by him in
accordance with the provisions of clause (b) of sub-rule (2) of rule 1, submits a statement in FORM GST
TRAN 2 --- at the end of each of the six tax periods during which the scheme is in operation indicating
therein the details of supplies of such goods effected during the tax period.
(iv) the amount of credit allowed shall be credited to the electronic credit ledger of the applicant maintained
in FORM GST PMT-2 on the Common Portal.
(v) the stock of goods on which the credit is availed is so stored that it can be easily identified by the
registered person.
(In CGST Rules)
(4) (a) (i) A registered person, holding stock of goods which have suffered tax at the first point of their
sale in the State and the subsequent sales of which are not subject to tax in the State availing credit in
accordance with the proviso to sub-section (3) of section 140 shall be allowed to avail input tax credit on
goods held in stock on the appointed day in respect of which he is not in possession of any document
evidencing payment of value added tax.
(ii) Such credit shall be allowed at the rate of sixty per cent. on such goods which attract central tax at the
rate of nine per cent. or more and forty per cent. for other goods of the State tax applicable on supply of
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 6 of 40
such goods after the appointed date and shall be credited after the State tax payable on such supply has
been paid:
Provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at the rate
of thirty per cent. and twenty per cent. respectively of the said tax.
(iii) The scheme shall be available for six tax periods from the appointed date.
(b) Such credit of State tax shall be availed subject to satisfying the following conditions, namely, -
(i) such goods were not wholly exempt from tax under the <Name of the State> Value Added Tax Act,…..
(ii) the document for procurement of such goods is available with the registered person.
(iii) the registered person availing this scheme and having furnished the details of stock held by him in
accordance with the provisions of clause (b) of sub-rule (2) of rule 1, submits a statement in FORM GST
TRAN 2--- at the end of each of the six tax periods during which the scheme is in operation indicating
therein the details of supplies of such goods effected during the tax period.
(iv) the amount of credit allowed shall be credited to the electronic credit ledger of the applicant
maintained in FORM GST PMT-2 on the Common Portal.
(v) the stock of goods on which the credit is availed is so stored that it can be easily identified by the
registered person.
(4) The amount of credit specified in the application in FORM GST TRAN-1 shall be credited to the
electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the Common Portal.
(In SGST Rules of States offering tax on MRP scheme)

2 Declaration to be made under clause (c) of sub-section (11) of section 142
Every person to whom the provision of clause (c) of sub-section (11) of section 142 applies, shall within a
period of sixty days of the appointed day, submit a declaration electronically in FORM GST TRAN-1
furnishing the proportion of supply on which VAT or service tax has been paid before the appointed day
but the supply is made after the appointed day, and the ITC admissible thereon.
[Individual States may insert a proviso giving the details of methodology of calculation of the VAT
paid which would be available as ITC of State Tax]
3. Declaration of stock held by a principal
Every person to whom the provisions of section 141 apply shall, within sixty days of the appointed day,
submit a declaration electronically in FORM GST TRAN-1, specifying therein, the stock of the inputs,
semi-finished goods or finished goods held by him on the appointed day.
4. Details of goods sent on approval basis
Every person having sent goods on approval under the existing law and to whom sub-section (12) of section
142 applies shall, within sixty days of the appointed day, submit details of such goods sent on approval in
FORM GST TRAN-1.
5. Recovery of credit wrongly availed
The amount credited under sub-rule (3) of rule 1 may be verified and proceedings under section 73 or, as
the case may be, section 74 shall be initiated in respect of any credit wrongly availed, whether wholly or
partly.
* * * * * * *

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 7 of 40





DRAFT
GOODS AND SERVICES TAX RULES, 2017
TRANSITIONAL PROVISIONS FORMS




Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 8 of 40
Form GST TRAN - 1
(See Rule -----)

Transitional ITC / Stock Statement

1. GSTIN -
2. Legal name of the registered person -
3. Trade Name, if any -

4. Whether all the returns required under existing law for the period of six months immediately preceding the appointed date have been furnished: - Yes/No

5. Amount of tax credit carried forward in the return filed under existing laws:
(a) Amount of Cenvat credit carried forward to electronic credit ledger as central tax (Section 140(1) and Section 140(4)(a))
Sl. no. Registration no.
under existing
law (Central
Excise and
Service Tax)
Tax period to which
the last return filed
under the existing law
pertains
Date of filing
of the return
specified in
Column no. 3
Balance cenvat credit
carried forward in the said
last return
Cenvat Credit admissible
as ITC of central tax in
accordance with transitional
provisions
1 2 3 4 5 6

Total

(b) Amount of tax credit carried forward to electronic credit ledger as State/UT Tax
(For all registrations on the same PAN and in the same State)
Sr.
no.
Registration
no.
under the
existing law
Tax period to which
the last return filed
under the existing
law pertains
Date of filing of
the return
specified in
column no. 3
Balance
VAT [&
Entry Tax]
credit carried
forward in
the return
Credit related to
unsubstantiated claims on
transactions under CST
(pending
forms C/F/H/E/I)
Input tax credit
admissible as ITC
of State/UT tax
(Column 5 -
Column6)
1 2 3 4 5 6 7

Total

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 9 of 40
6. Details of statutory forms (mentioned in column no. 6 of Table 5 above) received for which credit is being carried forward

Amount of
carried forward
ITC shown in
the last Return in
Rs.
Details of claim related to section 3, sub-section (3) of section 5,
section 6, section 6A or sub-section (8) of section 8 of the
Central Sales Tax Act, 1956
Credit not eligible
to be credited to the
electronic credit
ledger on account of
non-substantiation
of claim as per
Annexure 2

Credit eligible to be
credited to the
electronic credit
ledger Total claim against
Form C, F, H & I
during last 3 years
(Total turnover
involved in such
inter-State
transactions
including BT in Rs.)
Claim duly
substantiated in the
manner prescribed in
Rule 12 of CST
Rules, 1957 *
Claim not
substantiated in the
manner prescribed in
Rule 12 of CST Rules,
1957 as per
Annexure 1
1 2 3 4 5 6 (1-5)
(Auto populated from
Annexure 1)
(Auto populated from
Annexure 2)



Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 10 of 40
Annexure 1
Claim duly substantiated in the manner prescribed in Rule 12 of CST Rules, 1957
(i.e. details of statutory forms already received)

YEAR: …………………….. (2014-15/15-16/16-17/17-18)
Claim against C Form Claim against F Form Claim
against H
Form
Claim
against I
Form
Name of
Purchaser
TIN of
Purchaser
Sr. No. of
Form C
Amount Name of
Person
issuing F
Form
TIN of
Person
Sr. No.
of Form
F
Amount




Total


Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 11 of 40
Annexure 2
Calculation of credit not eligible to be credited to the electronic credit ledger due to non-submission of Form
(Amount in Rs.)
Sr. No. Particulars C FORM F FORM H FORM I FORM
1. Amount of pending claims (i.e. turnover) on account of non-submission of Form
2. Amount of tax levied, if any, on such turnover
3. Amount of ITC denied, if any (Varies from State to State)
4. Total tax burden on such pending claim
5. Details ITC claimed on intra-State purchases of taxable goods that is involved in such claim
5A (i) Amount of taxable purchase having 5% rate of tax
(ii) Amount of ITC claimed on such purchase
5B (i) Amount of taxable purchase having 15% rate of tax
(ii) Amount of ITC claimed on such purchase
5C (i) Amount of taxable purchase having ……..% rate of tax
(ii) Amount of ITC claimed on such purchase
6. Total ITC Claimed (= 5A(ii) + 5B(ii) + 5C(ii) + ………………)
7. Total ITC utilized (6-4)
8. Total ITC remained un-utilized (6-7)


Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 12 of 40

7. Details of capitals goods for which unavailed credit has not been carried forward under existing law (section140(2)).

(a) Amount of unavailed cenvat credit in respect of capital goods carried forward to electronic credit ledger as central tax
Sr.
no
Invoice
/
Docum
ent
no.
Invoice
/
docume
nt
Date
Supplier’s
registratio
n no.
under
existing
law
Recipients’
registration
no.
under
existing
law
Details of capital goods on which
credit has been partially availed
Total
eligible
cenvat
credit
under
existing
law
Total
cenvat
credit
availed
under
existing
law
Total cenvat
credit unavailed
under existing
law (admissible
as ITC of
central tax) (9-
10)
Value Duties and taxes paid
ED/
CVD
SAD
1 2 3 4 5 6 7 8 9 10 11

Total

(b) Amount of unavailed input tax credit carried forward to electronic credit ledger as State/UT tax
(For all registrations on the same PAN and in the same State)

Sr.
no
Invoice
/
Docum
ent
no.
Invoice
/
docume
nt
Date
Supplier’s
registratio
n no.
under
existing
law
Recipients’
registration
no.
under
existing
law
Details regarding capital goods on
which credit is not availed
Total
eligible
VAT [and
ET] credit
under
existing
law
Total
VAT [and
ET] credit
availed
under
existing
law
Total VAT [and
ET] credit
unavailed under
existing law
(admissible as
ITC of State/UT
tax) (8-9)
Value Taxes paid VAT
[and ET]

1 2 3 4 5 6 7 8 9 10

Total


Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 13 of 40

8. Details of the inputs held in stock in terms of sections 140(3), 140(4)(b) and 140(6).
(a) Amount of duties and taxes on inputs claimed as credit excluding the credit claimed under Table 5(a) and 7(a)
Sr. no. Details of inputs held in stock or inputs contained in semi-finished or finished
goods held in stock
HSN (at 6-
digit level)
Unit Qty. Value
Eligible Duties paid on
such inputs
1 2 3 4 5 6
8A Where duty paid invoices are available
Inputs

Inputs contained in semi-finished and finished goods

8B Where duty paid invoices are not available (Applicable only for person other than
manufacturer or service provider) – Credit in terms of Rule 3(a)(i)
Inputs

(b) Amount of vat and entry Tax paid on inputs supported by invoices/documents evidencing payment of tax carried forward to electronic credit ledger as
SGST/UTGST

Sr.
no.
Invoice/
docume
nt no.
Invoice/
docume
nt date
Supplier
reg. no.
under
earlier
laws
Name of
supplier
Recipient
s reg.
no.
under
earlier
laws
Details of inputs in stock Total input tax
credit claimed
under earlier
law
Total input tax
credit related
to exempt
sales not
claimed under
earlier law
Total Input
tax credit
admissible as
SGST/UTGS
T
Descript
ion
Unit Qty Type of
stock(input
s/semi-
finished/Fi
nished)
Value Taxes paid
VAT Entry
tax
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Total
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 14 of 40
(c) Details of inputs held on appointed day not supported by invoices/documents evidencing payment of tax (SGST Act)







9. Details of inputs or input services received on or after appointed day but duty and taxes has been paid under existing law under Section 140(5)

Sr. no. Invoice/d
ocument
no.
Invoice/docume
nt
Date
Supplier reg.
no. under
earlier laws
Name of
supplier
Recipients reg.
no. under
earlier laws
Details of Inputs in stock
Description Unit Quantity Value
1 2 3 4 5 6 7 8 9 10

Total
Sr.
no.
Invoice/do
cument
no.
Invoice/do
cument
date
Supplier’s
reg. no.
under
existing
laws
Recipient’s
reg. no.
under
existing
laws
Details of Inputs / input services
Value Amount of eligible
Duties and Taxes
1 2 3 4 5 6 7
Inputs

Input Services

Total
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 15 of 40
Details of description and quantity of inputs / input services as well as date of receipt of goods or services (as entered in books of accounts) is also required.

10. Details of transfer of cenvat credit for registered person having centralized registration under existing law (Section 140(8))

11. Details of goods sent as principal to the job worker under section 141

Sr.
No.
Challan
No.
Challan
date
Type of goods
(inputs/ semi-finished/
finished)
Details of goods with job- worker
HSN Description Unit Quantity Value
1 2 3 4 7 8 9 10 11
GSTIN of Job Worker, if available

Total

12. Details of goods held in stock as job worker on behalf of the principal under section 141

Sr.
No.
Challan
No.
Challan
Date
Type of goods
(inputs/ semi-finished/
finished)
Details of goods with job- worker
HSN Description Unit Quantity Value
1 2 3 4 7 8 9 10 11
GSTIN of Manufacturer

Total
Sl. no. Registration no.
under existing
law
(Centralized)
Tax period to
which the last
return filed under
the existing law
pertains
Date of
filing of the
return
specified in
Column no.
3
Balance eligible
cenvat credit
carried forward
in the said last
return
GSTIN of receivers
(same PAN)
of ITC of
CENTRAL TAX
Distribution document
/invoice
ITC of CENTRAL
TAX transferred
No. Date
1 2 3 4 5 6 7 8 9

Total
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 16 of 40

13. Details of credit availed in terms of Section 142 (11 (c ))

Sr.
no.
Registrati
on No of
VAT
Service
Tax
Registratio
n No.
Invoice/doc
ument no.
Invoice/
docume
nt
date
Tax Paid VAT paid
Taken as
SGST Credit
or Service
Tax paid as
CENTRAL
TAX Credit
1 2 3 4 5 6 7

Total


14. Details of goods sent on approval basis six months prior to the appointed day (section 142(12))



Verification (by authorized signatory)
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed
therefrom

Signature
Place Name of Authorized Signatory ….……………………
Date
Designation /Status……………………………………
Sr
No.
Document
no.
Document
date
GSTIN no. of
recipient, (if
applicable)
Name &
address of
recipient
Details of goods sent on approval basis
HSN Description Unit Quantity Value
1 2 3 4 5 6 7 8 9 10

Total
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 17 of 40
Form GST TRAN - 2
(See Rule -----)

1. GSTIN -
2. Name of Taxable person -
3. Tax Period : month……. year………

4. Details of inputs held on stock on appointment date in respect of which he is not in possession of any invoice/document evidencing payment of tax carried
forward to Electronic Credit ledger.
Opening stock for the tax period Outward supply made

Closing
balance
HSN (at 6 digit
level)
Unit Qty. Qty Value
Central
Tax
Integrate
d Tax
ITC
allowed
Qty
1 2 3 4 5 6 7 8 9


Verification (by authorized signatory)
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed
therefrom

Signature
Place Name of Authorized Signatory ….……………………
Date
Designation /Status……………………………………
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 18 of 40

Agenda Item 4: Finalization of the rates of tax and cess to be levied on commodities
remaining after the Fitment exercise in the 14th GST Council meeting

1. GST rates for supply of certain goods: The Hon’ble GST Council in its 14th
Meeting on 18th and 19th May, 2017, while discussing the GST rates for supply of
goods, had decided to discuss GST rates in respect of the following
commodities/commodity groups in its next meeting:
(i) Biri wrapper leaves (tendu patta) – Ch. 14
(ii) Biscuits – Ch.19
(iii) Biris – Ch. 24
(iv) Textiles – Ch. 50 to 63
(v) Footwear – Ch. 64
(vi) Natural or cultured pearls, precious or semi-precious stones, precious
metals, metals clad with precious metal, and articles thereof; imitation
jewellery; coin – Ch. 71
(vii) Power driven Agricultural, horticultural, forestry, poultry keeping or bee-
keeping machinery, Harvesting or threshing machinery, machines for
cleaning, sorting or grading, machinery used in milling industry and parts
thereof [8432, 8433, 8436 and 8437]
(viii) Cereals and flour put up in unit container and bearing a registered brand
name.
(ix) Puja samagri including havan samagri will be under Nil category. However,
the exact specifications for the same will be finalised.
2. This Agenda note gives certain factual details on the aforesaid
commodities/commodity groups so as to facilitate the discussions regarding GST rates
for them.
3. Subsequent to the putting on website the GST rates approved by the GST
Council, certain discrepancies have been noticed in the rate schedule. To rectify such
discrepancies an addendum is being circulated.
3. In addition, this Agenda also proposes definition of handmade matches and a
note on GST concession for supplies to Canteen Stores Department of Armed Forces.




Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 19 of 40
2. Cereals, pulses and flour put up in unit container and bearing a registered brand
name:

2.1 Table below gives an illustrative list of some such items sold packed in unit
container and bearing a registered brand name. The table also compares the prices of
branded goods either with the retail prices as per Department of Consumer Affairs
[DoCA], or with the lowest price of branded goods.

S.
No.
Wheat Flour Price Qty
(kg.)
Retail
Price
(MRP) per
Kg.
Variation
from
DoCA
price (Rs.
per Kg)
%
variation
w.r.t
DOCA
retail
price
Brand/
Registered
TradeMark
Owned by
Brand
/Registered
Trademark/
Label/ Device
registered
with CGPDT
1 Average Retail
Price as per DoCA
24.51 1 24.51

2 Ashirvaad shudh
Chakki Whole
wheat
330 10 33 8.49 35% ITC Ltd.

3 Patanjali Whole
wheat Atta
300 10 30 5.49 22% Patanjali
Ayurved
Ltd.

4 Nature Fresh
Chakki Atta
340 10 34 9.49 39% Cargill India
Pvt. Ltd.

5 Pillsbury Multigrain
Atta
245 5 49 24.49 100% The
Pillsbury
Company
LLC


6 Rajdhani whole
Wheat Chakki fresh
350 10 35 10.49 43% Victoria
Foods Pvt
Ltd.

7 Aashirvaad select
superior sharbati
Wheat atta
480 10 48 23.49 96% ITC Ltd.
8 Organic Tattva
Wheat Atta
280 5 56 31.49 128% Mehrotra
Consumer
Products
Pvt. Ltd.

9 24 Mantra organic
whole Wheat
260 5 52 27.49 112% Sresta
Natural
Bioproducts
Pvt.Ltd


10 Pro nature whole
Wheat
290 5 58 33.49 137% Pro Nature
Organic
Foods Pvt
Ltd




Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 20 of 40
S.
No.
Maida Price Qty
kg.
Retail
Price
(MRP) Rs.
per Kg.
Variation
from
cheapest
branded
maida
(Rs. per
Kg)
%
variation
with
reference
to
cheapest
branded
maida
Brand/
Registered
TradeMark
Owned by
Brand
/Registered
Trademark/
Label/ Device
registered
with CGPDT

1 Rajdhani Maida 30 0.5 60

Victoria
Foods Pvt
Ltd.


2 Ecolife Organic
Maida
55 0.5 110 50 367% Nature Bio
Foods Ltd. Word Mark
3 Organic tattva
Maida
55 0.5 110 50 367% Mehrotra
Consumer
Products
Pvt. Ltd.



Daliya Price Qty
(kg.)
Maximum
Retail
Price
(MRP)
per Kg.
Variation
from
cheapest
branded
maida
(Rs. per
kg.)
%
variation
with
reference
to
cheapest
branded
maida
Brand/
Registered
TradeMark
Owned by
Brand
/Registered
Trademark/
Label/
Device
registered
with CGPDT
1 Rajdhani Daliya 30 0.5 60 Victoria
Foods Pvt
Ltd.

2 Ecolife Organic
Daliya
48 0.5 96 36 60% Nature Bio
Foods Ltd.
Word Mark
3 Best Value wheat
daliya
35 0.5 70 10 17% Grofers
India Pvt.
Ltd.

4 Organic tattva
wheat daliya
55 0.5 110 50 83% Mehrotra
Consumer
Products
Pvt. Ltd.


Rice Price Qty
(kg.)
Price per
Kg.
Variation
from
cheapest
branded
basmati
rice per
kg.
%
variation
w.r.t
cheapest
branded
basmati
rice
Brand/
Registered
TradeMark
Owned by
Brand
/Registered
Trademark/
Label/ Device
registered
with CGPDT
1 Kohinoor charminar
rozana basmati
79 1 79 Kohinoor
Flour Mills
Ltd.

2 Patanjali samriddhi
Basmati Rice
790 5 158 79 100% Patanjali
Ayurved
Ltd.

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 21 of 40
3 24 Mantra organic
rice
89 1 89 10 13% Sresta
Natural
Bioproducts
Pvt.Ltd

4 Kohinoor everyday
basmati
439 5 88 9 11% Kohinoor
Flour Mills
Ltd.

5 Patanjali Basmati
XXL Rice
540 5 108 29 37% Patanjali
Ayurved
Ltd.


6 Patanjali
Dhanashree
Basmati
440 5 88 9 11% Patanjali
Ayurved
Ltd.




Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 22 of 40
3. Puja samagri, including havan samagri:

3.1 Puja samagri, including havan samagri, is proposed to kept under Nil GST rate.

3.2 As per the list provided by Uttar Pradesh, puja samagri includes items as under:
(i) Incense sticks commonly known as agarbatti, dhupkathi or dhupbatti
[proposed GST rate 12%];
(ii) Sambhrani or lobhana [proposed GST rate 12%];
(iii) Rudraksha, rudraksha mala, tulsi kanthi mala, panchgavya (mixture of
cowdung, desi ghee, milk and curd);
(iv) Sacred thread (commonly known as yagnopavit);
(v) Wooden khadau;
(vi) Panchamrit,
(vii) Vibhuti sold by religious institutions,
(viii) Unbranded honey [proposed GST Nil]
(ix) Wick for diya.
(x) Misri, batasha, bura [proposed GST rate 18%];

3.3 Goods like incense sticks commonly known as agarbattis, dhupkathi or
dhupbatti, sambhrani or lobhana are manufactured items and exempting them from GST
will put domestic manufacturers of such goods at a disadvantage vis-a-vis imports.
[proposed GST rate 12%].

3.4 Thus, except
(i) Incense sticks commonly known as agarbattis, dhupkathi or dhupbatti
[proposed GST rate 12%],
(ii) Sambhrani or lobhan [proposed GST rate 12%],
(iii) Mishri, batasha, bura [proposed GST rate 18%]
all other goods, namely, -
(i) Rudraksha, rudraksha mala, tulsi kanthi mala, panchgavya
(mixture of cowdung, desi ghee, milk and curd);
(ii) Sacred thread (commonly known as yagnopavit);
(iii) Wooden khadau;
(iv) Panchamrit,
(v) Vibhuti sold by religious institutions,
(vi) Unbranded honey [proposed GST Nil]
(vii) Wick for diya.
may be kept at Nil GST, as part of Puja samagri.

3.5 In addition, lobhan, mishri, batasha may be kept at 5% [the GST rate for
natural resin/sugar].

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 23 of 40
4. Definition of Handmade matches:

4.1 Handmade matches are proposed to be kept at 5%. The following definition as
it exists for the purposes of exemption from central excise duty is proposed to
be adopted:
“Matches, in or in relation to the manufacture of which, none of the following
processes is ordinarily carried on with the aid of power, namely: -
(i) frame filling;
(ii) dipping of splints in the composition for match heads;
(iii) filling of boxes with matches;
(iv) pasting of labels on match boxes, veneers or cardboards;
(v) packaging.”

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 24 of 40
5. Biscuits – Chapter 19:
Type of
biscuits
Excise
Duty Rate
/
embedded
excise
duty
Post-
clearance
Service
Tax
embedding
Headline /
Weighted
Average
VAT Rate
CST,
Entry
Tax,
Octroi,
etc.
Present
Incidence
Proposed
GST Rate
by the
Fitment
Committee
Low priced
Biscuits [RSP
equivalent not
exceeding
Rs.100 per kg.]
3.07% - 14.5% 2.50%
20.6%
with Octroi, etc.
18.1%
without Octroi,
etc.
18%
Other biscuits 6% 0.14% 14.5% 2.50%
23.11%
with Octroi, etc.
20.61%
without Octroi,
etc.
18%

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 25 of 40
6. Power driven Agricultural, horticultural, forestry, poultry keeping or bee-keeping
machinery, Harvesting or threshing machinery, machines for cleaning, sorting or
grading, machinery used in milling industry and parts thereof [8432, 8433, 8436
and 8437]:

Chapter
heading
Excise Duty
Rate / embedded
excise duty
Post-
clearance
Service
Tax
embedding
Headline /
Weighted
Average
VAT Rate
CST,
Entry
Tax,
Octroi,
etc.
Present
Incidence
Proposed
GST Rate
by the
Fitment
Committee
8432, 8433,
8436
Agricultural,
horticultural,
etc.
machinery
5% 0.09% 6.2% 2.50%
13.79%
with Octroi,
etc.
11.29%
without
Octroi, etc.
12%
8437
Cleaning,
sorting,
grading
machinery,
Milling
machinery
0%
[Actual embedding
will be more or less
same as other
agricultural
machinery. The
excise duty
drawback not
worked out as there
was no request from
industry]
0.09% 6.2% 2.50%
8.79%
with Octroi,
etc.
6.29%
without
Octroi, etc.
12%

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 26 of 40
7. Footwear – Ch. 64:

7.1 Excise duty Structure
Description Retail Sale Price
(RSP)
Rate
excise of
duty
Total tax incidence Proposed
GST rate
All footwear Less than Rs.500 per
pair
NIL
[Embedded
Taxes
5.04%]
9.5%
[5.04% Excise embedded+
2% VAT embedded +
2.5% CST, Octroi etc.]

12%
All footwear
More than Rs.500
and less than
Rs.1000 per pair
6%
23.1%
[6.14% Excise + 14.5%
VAT + 2.5% CST, Octroi
etc.]

18%
Leather
footwear More than Rs.1000
per pair
6%
23.1%
[6.14% Excise + 14.5%
VAT + 2.5% CST, Octroi
etc.]

18%
All footwear
[other than
leather
footwear]
More than Rs.1000
per pair
12.5%
29.58%
[12.64% Excise + 14.5%
VAT + 2.5% CST, Octroi
etc.]

18%

7.2 VAT Structure
State Exempt/lower rate
With description
Higher Rate
Bihar
5%
Plastic footwear/parts
15%
Jharkhand 0%
Rubber Chappal

5%
Plastic footwear/parts
15%
Karnataka 0%
Upto Rs 500 [plastic footwear, rubber]
14.5%
5.5%
Single moulded plastic above Rs 500
-
WB 5%
Hawai Chappal, plastic, EVA footwear

5%
Other than above footwear Up to Rs 750
14.50%
Gujarat
5%
Plastic footwear
14.50%
Kerala 5%
Up to Rs 500
14.50%
UP 0%
Up to Rs 300

5%
Plastic moulded and Hawai above Rs 300
14.50%
JK 5%
Plastic moulded and Hawai Chappal
14.50%
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 27 of 40
State Exempt/lower rate
With description
Higher Rate
Haryana
0%
Upto Rs 500
13.13%
Punjab
5%
Upto Rs 250
14.50%
Tamil Nadu
0%
Upto Rs 201
14.50%
Rajasthan
0%
Upto to Rs 500
14.50%
Chhattisgarh
0%
Upto to Rs 250
14.50%
MP
0%
Upto Rs. 250
14.50%
Uttarakhand
5%
Hawai moulded
14.5%

7.3 Imports
Rs. Crore
Financial Year CTH (2-Digit) CVD Rate Assessable Value CVD Paid

20152016 64 0.00 975 0.00
20152016 64 6.00 258 40
20152016 64 12.50 1233 470
Grand Total 2466 511

7.4 Domestic factory gate value
Rs. Crore
Financial Year Chapter Duty
rate
Assessable
Value
Duty collected
Cash Credit Total
20152016 64 Nil 2802 -- -- --
20152016 64 6.00 3266 121 57 178
20152016 64 12.50 1727 79 50 129
Grand Total 7790 200 107 307

7.5 Value of imports at 12.5% of CVD is less than the domestic production. However,
CV duty is more because of higher MRP of imported footwear.

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 28 of 40
8. Textiles – Ch. 50 to 63:

8.1 Present tax incidence and proposed GST rates [have already been circulated]

8.2 The CVD collection on imports during 2016-17:
Rs. Crore
Chapter Description CVD
Rate
Assessable
Value
CVD
Payable
50 Silk yarn and fabrics 12.5% 307 28
51 Wool fibres and fabrics 12.5% 227 11
52 100% Cotton yarn and fabrics 6% 276 9
52 Blended cotton yarn and fabrics 12.5% 678 10
53 Other vegetable fibres and fabrics 12.5% 464 28
TOTAL 1418 47
54 Man-made filaments/fibres and man-made
textile materials
12.5% 4593 419
55 Manmade staple fibres 12.5% 3475 293
TOTAL 8068 712
56 Wadding, felt and nonwovens; special yarns;
twine, cordage, ropes and cables and articles
thereof
12.5% 1540 187
57 Carpets and other textile floor coverings 12.5% 427 44
58
Special woven fabrics; tufted textile fabrics; lace;
tapestries; trimmings; embroidery
12.5% 519 41
59 Impregnated, coated, covered or laminated
textile fabrics; textile articles of a kind suitable for
industrial use
12.5% 4382 440
60 Knitted or crocheted fabrics 12.5% 2739 303
TOTAL 9607 1016
61
Articles of apparel and clothing accessories,
knitted or crocheted
12.5% 1597 398
62 Articles of apparel and clothing accessories, not
knitted or crocheted
12.5% 1943 495
63
Other made up textile articles, sets, worn clothing
and worn textile articles; rags
12.5% 1477 197
TOTAL OF GARMENTS AND MADE UPS 5017 1091
Total CVD collected

8.3 Excise collection during 2016-17:
Rs.
Crore
Central Excise Duty 2016-17
Chapter Commodity Cash Credit
54 Synthetic filament yarn [Excise duty @ 12.5%] 312 3781
55 M/M fibres & yarn [Excise duty @ 12.5%] 276 1662
54, 55 Manmade fabrics 10 61
52 Cotton Yarn & fabrics 5 100
TOTAL 603 5604
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 29 of 40

9. Biri wrapper leaves and Biris

9.1 Biri wrapper leaves (tendu patta) – Ch. 14:
Embedded
excise duty
Post-
clearance
Service
Tax
embedding
Headline
/Weighted
Average
VAT Rate
CST,
Entry Tax,
Octroi,
etc.
Present
Incidence
GST Rate
recommended
by the
Fitment
Committee
Rate
suggested
by
Madhya
Pradesh
0.85% 0.14% 5% 2.50%
8.41%
with Octroi,
etc.
5.91%
without
Octroi, etc.
5% 28%


9.2 Biris – Ch. 24:
a) Excise duty = 3.72%
b) Weighted average VAT rate = 19.46%
c) CST, Octroi, etc. = 2.5%
d) Total tax incidence = 25.68%
e) Proposed GST rate – 28%









Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 30 of 40
10. Natural or cultured pearls, precious or semi-precious stones, precious
metals, metals clad with precious metal, and articles thereof; imitation
jewellery; coin – Ch. 71:

Heading Description Excise duty rate
7101 Pearls, natural or cultured, whether or not worked
or graded but not strung, mounted or set; Pearls,
natural or cultured, temporarily strung for
convenience of transport
Nil
7102 Diamonds, whether or not worked, but not
mounted or set
Nil
7103 Precious stones (other than diamonds) and semi-
precious stones, whether or not worked or graded
but not strung, mounted or set; ungraded precious
stones (other than diamonds) and semi-precious
stones, temporarily strung for convenience
transport
Nil
7104 Synthetic or reconstructed precious or semi-
precious stones, whether or not worked or graded
but not strung, mounted or set; Ungraded
synthetic or reconstructed precious stones,
temporarily strung for convenience of transport
Nil
7105 Dust and powder of natural or synthetic precious
or semi - precious stones
6%
7106 Silver (including silver plated with gold or
platinum), unwrought or in semi - manufactured
forms, or in powder form
Silver manufactured
from Silver ore or
concentrate; Silver dore
bar; gold dore bar; or
during the process of
copper smelting, zinc or
lead smelting, attracts
duty of 8.5%. However,
CVD on Silver is Nil.
7107 Base metals clad with silver, not further worked
than semi - manufactured
12.5%
7108 Gold (including gold plated with platinum)
unwrought or in semi - manufactured forms, or in
powder form
Gold bars manufactured
from gold ore or
concentrate; Gold dore
bar; Silver dore bar; or
during the process of
copper smelting, zinc or
lead smelting, attracts
duty of 9.35%.
7109 Base metals or silver, clad with gold, not further
worked than semi - manufactured
12.5%
7110 Platinum, unwrought or in semi - manufactured
form, or in powder form
12.5%
7111 Base metals, silver or gold, clad with platinum,
not further worked than semi-manufactured
12.5%
7113 Articles of jewellery and parts thereof, of precious
metal or of metal clad with precious metal
1% (without input tax
credit)
or
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 31 of 40
12.5% with input tax
credit
7113 Articles of silver jewellery, other than those
studded with diamond, ruby, emerald or sapphire
are exempted.
Nil
7114 Articles of goldsmiths' or silversmiths' wares and
parts thereof, of precious metal or of metal clad
with precious metal
1% (without input tax
credit)
or
12.5% with input tax
credit
7115 Other articles of precious metal or of metal clad
with precious metal
12.5%
7116 Articles of natural or cultured pearls, precious or
semi-precious stones (natural, synthetic or re-
constructed)
12.5%
7117 Imitation jewellery 6%
7118 Numismatic Coins Nil


10.2 VAT Rates for Jewellery in different States:
S. No. State Rate
1. Andhra Pradesh 1%
2. Arunachal Pradesh 1%
3. Assam 1%
4. Bihar 1%
5. Chhattisgarh 1%
6. Chandigarh 1%
7. Dadra & Nagar Haveli 1%
8. Daman & Diu 1%
9. Delhi 1%
10. Goa 1%
11. Gujarat 1%
12. Haryana 1%
13. Himachal Pradesh 1%
14. Jammu & Kashmir 1%
15. Jharkhand 1%
16. Karnataka 1%
17. Kerala 5%
18. Madhya Pradesh 1%
19. Maharashtra 1.2%
20. Manipur 1%
21. Meghalaya 1%
22. Mizoram 1%
23. Nagaland 1%
24. Odisha 1%
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 32 of 40
S. No. State Rate
25. Puducherry 1%
26. Punjab 1%
27. Rajasthan 1%
28. Sikkim 1%
29. Tamil Nadu 1%
30. Telangana 1%
31. Tripura 2%
32. Uttar Pradesh 1%
33. Uttarakhand 1%
34. West Bengal 1%

10.3 VAT Rates for diamond and other precious and semi-precious stones in
different States: VAT rates applicable to diamonds and precious and semi-
precious stones in different States are same as that for jewellery, except in
case of Gujarat, which has Nil VAT on rough diamonds.
10.4 Market size:
10.4.1 Articles of jewellery and other articles of precious metals:

(i) Total jewellery market size in India is about Rs. 4.5 lakh crore.
(ii) Gold consumption in Jewellery sector was 527 MT during 2016-17 as against
606 MT during 2015-16
(iii) As per report of the GST Revenue Neutral Rate Committee, consumption
of gold by top 2 income deciles account for about 80% of the total
consumption, while consumption by bottom 4 deciles is only 0.2%.
(iv) Simultaneously, it is by nature an evasion prone commodity and, thus,
linked to black money generation.


10.4.2 Imports of Gold Jewellery:
Rs Crore
Description 2015-
16
2016-17
( Up to Feb)
JEWELLERY OF GOLD UNSET 2,526 292
JEWELLERY OF GOLD SET WITH PEARLS 3 13
JEWELLERY OF GOLD SET WITH DIAMOND 1,214 956
JEWELLERY OF GOLD SET WITH PRECIOUS AND
SEMI PRECIOUS STONES OTHER THAN DIAMONDS
65 67
JEWELLERY OF PLATINUM GROUP METALS UNSET 21 18
Grand Total 3,829 1345



Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 33 of 40

10.4.3 Exports of Gold Jewellery:
Rs Crore
Description 2015-16 2016-17
(Upto Feb)
JEWELLERY OF GOLD UNSET 23,998 23,355
JEWELLERY OF GOLD SET WITH PEARLS 359 140
JEWELLERY OF GOLD SET WITH DIAMOND 23,202 21,254
JEWELLERY OF GOLD SET WITH PRECIOUS AND
SEMI PRECIOUS STONES OTHER THAN DIAMONDS
3,792 3,706
Total 51,352 48,455



10.5 Precious metals:
Gold and Silver imports during 2015-16 and 2016-17
Rs. Crore
Financial year Quantity (in Kg) Value
Gold
2015-16 929167 197255
2016-17 716418 167316
Silver
2015-16 6740444 21636
2016-17 2121620 7749



10.6 Diamonds: Imports and exports

Rs Crore
Description Imports value Exports value
2015-16
2016-17
(Upto Feb) 2015-16
2016-17
(Upto Feb)
Rough Diamonds 92368 101418 9170 9579
Cut and polished
diamonds 17758 14129 133379 139263




Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 34 of 40
10.7 Precious and semi-precious stones: Imports and exports

Rs Crore
Description Imports value Exports value
15-16
2016-17
( upto Feb)
15-16
2016-17
(upto Feb)
EMERALDS, UNCUT 664 1597 194 190
RUBY AND SAPPHIRE,
UNCUT
1,058 1109 5 37
OTHR PRCS STONE (E.G.
AQUAMARINE
CHRISOBARYLE-TOPAZ
ETC) UNCUT
36 219 11 2
OTHER SEMI PRECIOUS
STONE UNCUT
738 641 94 42
OTHERWISE WRKD
RUBIES SAPPHIRES AND
EMERALS
8,062 8797 1594 1619
OTHER STONE CUT
(TOPAZ AQUAMARINE
ETC)
266 241 - -



Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 35 of 40
11. GST tax treatment of Supplies to Canteen Stores Department [CSD], a
Government of India undertaking under the Union Ministry of Defence
and Supplies from CSD and Unit Run Canteens [URCs]:

11.1 The Canteen Stores Department [of Armed Forced], CSD as it is commonly
referred to, was created to provide ‘easy access to quality products of daily use, at
prices less than market rates’ to the soldiers, ex-servicemen and their families. It is
not driven by the profit motive.

11.2 The Department has 34 depots strategically located across India. This is the
core strength of the CSD, which puts its operation in close proximity to the thousands
of URCs it has mandated to serve. These Depots are the hub of the CSD chain.

11.3 Presently, CSD enjoys partial or full exemption, as the case may be, which
varies from State to State, on procurements by CSD, supplies by CSD to the URCs
and supplies by URCs to the customers.

11.4 During 2015-16
a) Sales = Rs. 15,828 crore
b) Sales net of liquor sales = Rs. 13,421 crore
c) Total VAT exemption benefit on non-liquor sales = Rs. 1376 crore
d) % VAT concession on items other than liquor = 10.3%.

11.5 Thus, Hon’ble GST Council may like to consider, 50% concession from GST
on supplies to CSD, which will result in concessional rate of 2.5%, 6%, 9% and 14%
[with resultant concessions of 2.5%, 6%, 9% and 14%]. No concession may, however,
be extended from Compensation Cess.

11.6 At present, there is no excise duty concession on supplies to CSD. However,
in GST it would be advisable that the cost of concessions to CSD is equally borne by
the Centre and States.

11.7 If the above proposal is accepted then we will have to issue:
a) A notification under section 55 of the CGST/SGST Acts, providing for
refund of 50% of GST to CSD;
b) Exempt 50% of GST payable on supplies [sales] made by CSD to Unit Run
Canteens
c) Exempt 50% of GST payable on supplies [sales] made by CSD or Unit Run
Canteens to final consumer.

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 36 of 40

12. Addendum to the GST rate Schedule for Goods [As per discussions in the
GST Council Meeting held on 18th May, 2017]

The following amendments / additions are required to be made to the aforesaid document:
1. In Chapter 15, in the 18% rate column, the part entry from 1517 relating to edible
mixtures of vegetable fats or oils, that is “edible mixtures or preparations of vegetable
fats or vegetable oils or of fractions of different vegetable fats or vegetable oils of this
Chapter, other than edible fats or oils or their fractions of heading 1516 [1517]” may
be shifted to the 5% rate column [wherein all vegetable fats and vegetable oils at 5%].
[This will ensure that mixtures of two or more varieties of edible vegetable oils fall at
5%.]
2. In Chapter 29, in the 18% rate column, after the entry No 39 the following entries shall
be inserted,
(i) “40 - 2939 Alkaloids, natural or reproduced by synthesis, and their salts,
ethers, esters and other derivatives
(ii) 41 - 2940 Sugars, chemically pure, other than sucrose, lactose, maltose,
glucose and fructose; sugar ethers, sugar acetals and sugar esters, and their
salts, other than products of headings 2937, 2938 or 2939
(iii) 42 - 2941 Antibiotics
(iv) 43 - 2942 Other organic compounds”
All goods falling under chapter 29 [organic chemicals, being intermediates] are at 18%
[These were omissions]
3. In Chapter 31, in the 5% rate column, the entries “3101 Organic manure put up in unit
containers and bearing a brand name” may be added. [3101 Organic manure other than
put up in unit containers and bearing a brand name is at Nil]. [This was an omission.]
4. In Chapter 34, in the 28% rate column, the entry “3404 Artificial waxes and prepared
waxes” may be omitted. These goods [being in the nature of intermediates] are covered
in the 18% rate column. [By mistake it was appearing in 28% also.]
5. In Chapter 38, in the 18% rate column, for the entry No 18 the entry “3823 Industrial
monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols” shall be
substituted. [There is typographical error in the description.]
6. In Chapter 40,
i. in the 12% rate column, the entry “4 - Erasers [4016].” may be added.
ii. in the 18% rate column, the entry No. 12 “Erasers [4016].” may be omitted.
[Mathematical boxes, geometry boxes and colour boxes, pencil sharpeners
(7310 or 7326) and Pencils, crayons (9609) are at 12%].
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 37 of 40
7. In Chapter 48, in the 18% rate column, for the part entry in 4811 i.e. for the words
“[Other aseptic packaging paper and”, the words “[other than aseptic packaging paper]”
shall be substituted. [Aseptic packaging paper 4811 is covered in the 12% rate column.
There was a small mistake of missing word, ‘than’ after the word ‘other’.]
8. In Chapter 69, -
i. In the 28% rate column, the entry “6903 Other refractory ceramic goods (for
example, retorts, crucibles, muffles, nozzles, plugs, supports, cupels, tubes,
pipes, sheaths and rods), other than those of siliceous fossil meals or of similar
siliceous earths” may be omitted [This entry is covered in the 18% rate column
as all goods of 6903].
ii. In the 28% rate column, the entry “6908 Glazed ceramic flags and paving,
hearth or wall tiles; glazed ceramic mosaic cubes and the like, whether or not
on a backing” may be omitted [This tariff heading has been omitted from the
Central Excise Tariff with effect from 01.01.2017. This entry is now covered in
the entry 6907, which is also in the 28% rate column].
9. In Chapter 70,
i. In the 18% rate column, in the entry against 7018, “Glass beads” may be
omitted.
ii. In the 5% rate column, the entry “7018 Glass beads” may be inserted.
[Glass beads are covered as part of “Embroidery or zari articles” in the 5% rate
column under chapter 58.]

10. In Chapter 84, -
i. In the Nil rate column, the entry “8445 Amber charkha” may be added.
ii. In the 5% rate column, the entry “Hand pumps and parts thereof [8413, 8414
90]” may be read as “Hand pumps and parts thereof [8413, 8413 91]”.
iii. In the 12% rate column, the entry No 1 the words “Nuclear fuel elements” may
be substituted by the words “fuel elements (cartridges), non-irradiated, for
nuclear reactors”
iv. In the 18% rate column, in entry No 1 the words “fuel elements (cartridges),
non-irradiated, for nuclear reactors” may be omitted.

11. In the 18% rate column, after entry No 13 the entry “13A - machinery for cleaning or
drying bottles or other containers; machinery for filling, closing, sealing or labelling
bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars,
tubes and similar containers; other packing or wrapping machinery (including heat-
shrink wrapping machinery); machinery for aerating beverages [8422 20 00, 8422 30
00, 8422 40, 8522 90]” shall be inserted. [These are capital goods and are not listed in
in the 18% rate column].
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 38 of 40
12. In Chapter 85, -
i. In the 5% rate column, after entry (c), the entry “(d) photo voltaic cells,
whether or not assembled in modules or made up into panels” may be added
[these cells and modules are renewable energy devices].
ii. Correspondingly, in the 18% rate column, the part entry from 8541, that is
“including photo voltaic cells, whether or not assembled in modules or made
up into panels” may be omitted.
iii. In the 12% rate column, the entry “8539 LED lamps” may be added [LED
lamps, falling under 9405, are already at 12% rate.]
13. In Chapter 90, in the 18% rate column, the entry “9032 Automatic regulating or
controlling instruments and apparatus” may be inserted [this entry is not listed in the
18% rate column].
14. In Chapter 91, -
i. In the 28% rate column, the entry “9110 Complete clock movements,
unassembled or partly assembled (movement sets); incomplete clock
movements, assembled; rough clock movements” may be omitted;
ii. In the 18% rate column, the entry “5 - 9110 Complete clock movements,
unassembled or partly assembled (movement sets); incomplete clock
movements, assembled; rough clock movements” may be added in the 28% rate
column, the entry from 9112 relating to clock i.e. “9112 Clock cases, and parts
thereof” may be omitted;
iii. In the 28% rate column, the entry from 9112 relating to clock i.e. “6 - 9112
Clock cases, and parts thereof” may be added;
[Clocks and their parts are at 18%].
15. In Chapter 95, in the 28% rate column the entry “9506 Articles and equipment for
general physical exercise, gymnastics, athletics, other sports (including table-tennis) or
outdoor games, not specified or included elsewhere in this chapter; swimming pools
and paddling pools” may be substituted by the entry “9506 Articles and equipment for
general physical exercise, gymnastics, athletics”. [Sports goods in general are at 12%].
16. In Chapter 96, in the 12% rate column, the entry “Pencils, crayons, pastels, drawing
charcoals, writing or drawing chalks and tailor’s chalk [9609]” may be read as “Pencils,
crayons, pastels, drawing charcoals and tailor’s chalk [9608, 9609]” [propelling or
sliding pencils are covered under 9608. Chalk sticks are at Nil.].

*****

Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 39 of 40
Additional Agenda Item
Agenda Note – e Way Bills
Draft Rules on e-way bills, which were framed by the Law Committee, were put in public
domain in April, 2017. Various representations on these rules have been received and collated,
but the same have not been examined so far by the Law Committee for paucity of time.
2. Some of the key issues identified by the trade and industry in relation to e-way bills
rules are as follows:
a) The draft rules have laid down a very low threshold beyond which the e-way bill will
apply. It has been provided that any consignment of value greater than Rs. 50,000/-
will be required to have an e-way bill for its movement. The limit is very low
compared to the high compliance burden for transporters.
b) The rules provide that it will be applicable to any kind of movement of goods both,
intra-State or inter-State. The draft e-way bill has gone beyond the present system and
is proposed to be applicable to any kind of movement, both intra-State and inter-State.
c) The draft rules provide that it will be applicable to movement of all kinds of goods.
There is no demarcation for the goods as to whether they are evasion prone or not.
This universal application of the rule to all kinds of goods means that there is no
adoption of risk management approach which is the essence of modern day tax
administration.
d) The draft rules provide for strict timelines for completion of transport operation, which
appear to be impractical and aloof from reality. Further any violation of timelines has
penal consequence.
e) The coverage of the rules is ubiquitous and does not provide for relaxation for any
kind of movement such as that for imports or exports. So any movement of the export
goods from the ICD to the Gateway port or for the transhipment of the imported goods
from gateway port to the ICD has not been given any relaxation from the application
of rules
f) The rules require that any transhipment of the goods during movement will entail the
generation of a new-way bill. The compliance burden created by this requirement
would be huge as transhipment is one of the essential attribute of cargo movement and
is required for efficient movement of goods throughout the country. Besides, there
might be certain eventualities such as accidents where the goods would require to be
shifted from one conveyance to another.
Detailed Agenda Notes 2 - Agenda for 15th GSTCM
Page 40 of 40
g) The draft rules provide that the transporter is required to carry both the invoice as well
as the e-way bill during the movement of goods. Thus, there is no respite for the
transporter.
h) The onus and responsibility of movement of taxable goods is getting blurred. The
smooth movement of goods may be hindered because of the faults of a transporter.
i) Trade associations have suggested alternative model.

3. Since the feedback from the stakeholders is yet to be examined by the Law Committee,
finalisation of Rules and related formats may take some time. The software development can
start only after finalization of the rules and formats by the Council.

4. The above facts are placed for consideration of the Council for deciding the date and
modalities of the implementation of e-way system in GST regime.

Detailed Agenda Notes 2 - Agenda for 15th GSTCM