- GST on room rent charged by hospitals: It has been recommended to charge GST on room rent (excluding ICU) exceeding Rs. 5,000 per day per patient charged by a hospital to the extent of the amount charged for the room at 5% without ITC.
- Withdrawal of exemption on hotel accommodation in specified cases: Currently, services by a hotel, inn, guest house, club or campsite for residential or lodging purposes, having value of supply of a unit of accommodation below or equal to Rs. 1000 per day or equivalent is exempt from GST. It has recommended to withdraw the said exemption and apply 12% GST rate on the said supplies.
- GST on Indian Tour Operator services in certain cases: It has been recommended that where an Indian tour operator provides a service to a foreign resident for the tour partially conducted in India and partially conducted outside India, it should be taxed proportionate to tour conducted in India. This would be subject to the condition that the tour duration in India is maximum up to 50%.
- No exemption for renting of residential dwelling in B2B transactions: In case a residential dwelling has been given on rent to a person registered under GST (business entities), then it has been proposed that GST shall become leviable in this case.
- Exercise of reverse charge option by GTA at the beginning of FY: The Goods Transport Agency (‘GTA’) would be required to exercise the option to payment under forward charge or reverse charge at the beginning of Financial Year.
- Change in rate on renting of trucks in certain cases: The GST rate on renting of trucks or goods carriage where fuel is included in the rent is recommended to be reduced from 18% to 12%.
- Clarification on renting of motor vehicle for passenger transportation: Recommendation is made to issue a clarification to provide that renting of motor vehicles for transport of passengers to a body corporate for a period is taxable in the hands of body corporate under reverse charge.
- No reversal of ITC on exempted supply of Duty Credit Scrips: Recommendation is made to amend Explanation 1 to Rule 43 of the CGST Rules to provide that there is no requirement of reversal of input tax credit for exempted supply of Duty Credit Scrips by the exporters.
- Exemption from filing Annual Return (GSTR-9): Exemption in furnishing the Annual Return in Form GSTR 9/9A for financial year 2021-22 in respect of taxpayers having aggregate turnover less than Rs. 2 crores.
- GST Rate changes on Government Contractors: The changes proposed are w.e.f. 18th July 2022;
| Sl. No. | Description of supply | Existing Rate | Recommended Rate |
| 1. | Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc. | 12% | 18% |
| 2. | Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof | 12% | 18% |
| 3. | Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof | 5% | 12% |
11. Rationalize of calculation of refund claim under Inverted Duty Structure: For the calculation of ‘tax payable on the inverted rated supply of goods and services’, the ratio in which inputs and inputs services were availed by the taxpayer is to be applied now.
12. Automatic revocation of cancellation of GST registration in certain cases: Amendment would be made in CGST provisions for providing automatic revocation of suspension of registration in cases where suspension of registration was done by the system due to non-filing of returns for the specified period when all the pending returns are filed on the portal by the taxpayer.
13. Other GST Rate changes: The changes proposed are w.e.f. 18th July 2022;
| Sl. No. | Description | From | To |
| GOODS | |||
| 1. | Printing, writing or drawing ink | 12% | 18% |
| 2. | Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc | 12% | 18% |
| 3. | Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps | 12% | 18% |
| 4. | LED Lamps, lights and fixture, their metal printed circuits board; | 12% | 18% |
| 5. | Drawing and marking out instruments | 12% | 18% |
| 6. | Solar Water Heater and system; | 5% | 12% |
| 7. | Prepared/finished leather/chamois leather / composition leathers; | 5% | 12% |
| 8. | Tetra Pak (Aseptic Packaging paper) | 12% | 18% |
| 9. | Tar (whether from coal, coal gasification plants, producer Gas plants and Coke Oven Plants. | 5%/18% | 18% |
| 10. | Cut and Polished Diamonds | .25% | 1.5% |
| 11. | IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces. | Applicable rate | Nil |
| 12. | Cheques, lose or in book form | Nil | 18% |
| 13. | Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed | Nil | 12% |
| 14. | Parts of goods of heading 8801 | Nil | 18% |
| 15. | Petroleum/ Coal bed methane | 5% | 12% |
| 16. | Scientific and technical instruments supplied to public funded research institutes | 5% | Applicable rate |
| 17, | E-waste | 5% | 18% |
| SERVICES | |||
| 1. | Services supplied by foreman to chit fund | 12% | 18% |
| 2. | Job work in relation to processing of hides, skins and leather | 5% | 12% |
| 3. | Job work in relation to manufacture of leather goods and footwear | 5% | 12% |
14. Changes in Form GSTR-3B: Mandatory furnishing of correct and proper information of inter-state supplies and amount of ineligible/blocked Input Tax credit and reversal thereof in return in Form GSTR 3B.
Source: Taxmann