India: MOF releases its GST recommendations
The Indian Ministry of Finance released the GST Council’s recommendations which included changes to the GST rate as well as trade facilitation and GST compliance initiatives.
The proposed changes intend to:
- Lower rates for specific pulses from 5% to 0%, and for a certain type of ethyl alcohol delivered to refineries from 18% to 5%.
- Supplies of wild mint should be subject to the reverse charge mechanism,
- GST should not be applied to rentals of residential properties to registered individuals acting in their individual capacities for a residence.
- Apply a 22% rate to specific sport utility vehicles (SUVs).
- Raise the minimum tax threshold for prosecution from 10 million to 20 million Indian rupees, with the exception of invoices issued in the absence of a supply of goods, services, or both;
- Decriminalize certain actions, like malicious tampering with tangible evidence;
- Lower the compounding rate to a range of 25% to 100% of the tax amount, from 50% to 150% and;
- Permit composition taxpayers and unregistered suppliers to make intra-state product supplies through E-Commerce Operators (ECOs)(Subject to certain restrictions).
Source: pib.gov.in
