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Confidential Agenda for 21st GST Council Meeting 9 September 2017 Hyderabad, Telangana Page 2 of 173 F.No. 144/21st Meeting/GST Council/2017 GST Council Secretariat Room No.275, North Block, New Delhi Dated: 5 September 2017 Notice for the 21st Meeting of the GST Council on 9 September 2017 The undersigned is directed to refer to the subject cited above and to say that the 21st meeting of the GST Council will be held on 9 September 2017 at Hyderabad International Convention Centre, Novotel Hotel, Madhapur, Hyderabad. The schedule of the meeting is as follows: i. Saturday, 9 September 2017 : 1100 hours onwards 2. In addition, an officers’ meeting will be held at the same venue as per the following schedule: ii. Friday, 8 September 2017 : 1500 hours onwards 3. The agenda items for the 21st GST Council Meeting are attached. 4. Keeping in view the constraints of rooms in the hotel, it is requested that participation from each State may be limited to 2 officers in addition to the Hon’ble Member of the GST Council. 5. Please convey the invitation to the Hon’ble Members of the GST Council to attend the 21st GST Council 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, 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. 4. Chairperson, CBEC, North Block, New Delhi, as a permanent invitee to the proceedings of the Council. 5. Chairman, GST Network Page 3 of 173 Agenda Items for the 21st Meeting of the GST Council on 9 September 2017 1. Confirmation of the Minutes of the 20th GST Council Meeting held on 5 August 2017 2. Decisions of the GST Implementation Committee (GIC) for information of the Council 3. Nomination of Director in the Board of GSTN from Group B (State Governments) 4. List of Acts from the Central and State Governments as per Section 5(4) of the GST (Compensation to States) Act, 2017 5. Issues recommended by the Law Committee for consideration of the GST Council i. Notification with respect to sub-section 6 of Section 54 of Central Goods & Services Act, 2017 (Category of Registered Persons not eligible for refund) ii. Extension of date for opting for composition till 30th September, 2017 in respect of such migrated taxpayers, who have not exercised their option till 16th August, 2017 iii. Exemption from the requirement of registration to the persons making supplies of handicraft goods in different states iv. Exemption to a job-worker making inter-State supply of services to a registered person from the requirement of obtaining registration under clause (i) of section 24 of the CGST Act, 2017 and consequential amendments v. Notifying the date from which section 51 of the CGST Act, 2017 shall come into force as 18.09.2017 and notifying certain persons or category of persons as deductors under clause (d) of sub-section (1) of section 51 of the said Act vi. Constitution of the Standing Committee, Screening Committees and National Anti-profiteering Authority (NAA) vii. Transitional provisions and filing of FORM GST-TRAN-1 viii. Changes in Central Goods and Service Tax Rules, 2017 6. Approach Paper on Principles for Fitment post implementation of GST 7. Recommendations of the Fitment Committee on goods and services (Outstanding Agenda Item from 20th GST Council Meeting) 8. Other Recommendations of the Fitment Committee i. Alternative approach for GST Rate Structure for Handicrafts ii. Compensation Cess on Motor Vehicles iii. Exemption from GST on the services provided to both international and domestic customers by ANTRIX Corporation Limited from levy of GST iv. Exemption from GST on the supply of nuclear fuel and heavy water by DAE to NPCIL v. GST on admission tickets for FIFA Under-17 Football World Cup-2017 9. Any other agenda item with the permission of the Chairperson 10. Date of the next meeting of the GST Council Page 4 of 173 Page 5 of 173 TABLE OF CONTENTS Agenda Agenda Item Page No. No. 1 Confirmation of the Minutes of the 20th GST Council Meeting held on 5 Aug 2017 6 Decisions of the GST Implementation Committee (GIC) for information of the 2 61 Council 3 Nomination of Director in the Board of GSTN from Group B (State Governments) 67 List of Acts from the Central and State Governments as per Section 5(4) of the 4 73 GST (Compensation to States) Act, 2017 Issues recommended by the Law Committee for consideration of the GST Council i. Notification with respect to sub-section 6 of Section 54 of Central Goods & Services Act, 2017 (Category of Registered Persons not eligible for 86 refund) ii. Extension of date for opting for composition till 30th September, 2017 in respect of such migrated taxpayers, who have not exercised their option till 87 16th August, 2017 iii. Exemption from the requirement of registration to the persons making 88 supplies of handicraft goods in different states iv. Exemption to a job-worker making inter-State supply of services to a 89 registered person from the requirement of obtaining registration under 5 clause (i) of section 24 of the CGST Act, 2017 and consequential amendments v. Notifying the date from which section 51 of the CGST Act, 2017 shall come into force as 18.09.2017 and notifying certain persons or category of 90 persons as deductors under clause (d) of sub-section (1) of section 51 of the said Act vi. Constitution of the Standing Committee, Screening Committees and 91 National Anti-profiteering Authority (NAA) vii. Transitional provisions and filing of FORM GST-TRAN-1 93 viii. Changes in Central Goods and Service Tax Rules, 2017 95 6 Approach Paper on Principles for Fitment post implementation of GST 96 Recommendations of the Fitment Committee on goods and services (Outstanding 7 102 Agenda Item from 20th GST Council Meeting) Other Recommendations of the Fitment Committee i. Alternative approach for GST Rate Structure for Handicrafts 154 ii. Compensation Cess on Motor Vehicles 160 iii. Exemption from GST on the services provided to both international and 8 domestic customers by ANTRIX Corporation Limited from levy of GST 170 iv. Exemption from GST on the supply of nuclear fuel and heavy water by 172 DAE to NPCIL v. GST on admission tickets for FIFA Under-17 Football World Cup-2017 173 9 Any other agenda item with the permission of the Chairperson - 10 Date of the next meeting of the GST Council - Page 6 of 173 Discussion on Agenda Items Agenda Item 1: Confirmation of the Minutes of the 20th GST Council Meeting held on 5 August 2017 Draft Minutes of the 20th GST Council Meeting held on 5 August, 2017 The twentieth Meeting of the GST Council (hereinafter referred to as ‘the Council’) was held on 5 August, 2017 in Vigyan Bhavan, New Delhi, 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 of the Minutes. 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 of the Minutes. 2. The following agenda items were listed for discussion in the 20th Meeting of the Council: – 1. Confirmation of the Minutes of the 18th GST Council Meeting held on 30 June 2017. 2. Confirmation of the Minutes of the 19th GST Council Meeting held on 17 July 2017. 3. Decisions of the GST Implementation Committee (GIC) for post-facto approval. 4. Approval of e-Way Bill System Rule. 5. Recommendations of the Fitment Committee. 5 (i). Recommendations of the Fitment Committee (Goods): Indigenous Handmade Musical Instruments. 6. Proposals regarding changes to Central Sales Tax Rules. 7. Any other agenda item with the permission of the Chairperson. i. Amendments to CGST and SGST Rules. ii. Constitution of Standing Committee for Anti-Profiteering. iii. Development of e-Way Bill system by NIC. iv. GST rate on Works Contract Services provided to the Government. v. GST on Profit Petroleum and clarification on Cost Petroleum. vi. Payment Process for Tax Deducted at Source under GST. vii. Amendment of the Procedure and Conduct of Business Regulations of the GST Council. viii. Review of the ceiling rate of the Compensation Cess on motor vehicles. ix. Special provisions in GST in case of supplies to/from Nepal and Bhutan. x. Modification in FORM REG -13 to remove mandatory requirement of PAN for Embassies / Consulates and other UN Organizations. xi. Taxation of rectified spirit/Extra Neutral Alcohol (ENA) under GST. xii. Exemption from IGST on temporary import of goods. 8. Date of the next meeting of the GST Council. Page 7 of 173 3. The Hon’ble Chairperson welcomed all the Members to the 20th Council Meeting. He informed that one change had taken place in the membership of the Council, namely, Shri Bijendra Prasad Yadav from Bihar had a change of responsibility in his State and his place had been taken by Shri Sushil Kumar Modi, the Hon’ble Deputy Chief Minister of Bihar.
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