The 49th Meeting (18 February 2023) marked a milestone in taxpayer-friendly reforms — decriminalizing minor GST offences, approving India's first GST Appellate Tribunal, and introducing capacity-based taxation for tobacco products.
| Item / Service | From | To | Condition |
|---|---|---|---|
| Rab (liquid jaggery) | 18% | 5% | Sold unbranded/loose |
| Coal rejects / washery rejects | 5% | Exempt | Waste classification |
| Coconut coir pith compost | 5% | Exempt | Agricultural input |
| Imitation zari thread | 12% | 5% | Handicraft sector support |
| Biomass briquettes (non-agro) | 18% | 5% | Green energy |
| SUV definition (cess) | Unclear | Defined | Length>4m + EC>1500cc + GC>170mm |
The 49th GST Council Meeting was held on 18 February 2023 in New Delhi, chaired by Finance Minister Nirmala Sitharaman. It was a landmark meeting that approved: (1) Decriminalization of GST offences by raising prosecution threshold from ₹1 Cr to ₹2 Cr; (2) Formation of GST Appellate Tribunal (GSTAT) — India's first dedicated GST court; (3) Capacity-based taxation for pan masala/gutkha; (4) Online gaming GoM report (28% recommendation deferred); (5) Amnesty for GSTR-9 late filers.
The Council decriminalized several GST offences by: (1) Raising the prosecution threshold from ₹1 Crore to ₹2 Crore — offences involving tax evasion below ₹2 Cr will no longer face criminal prosecution; (2) Exception: Fake invoice/fraudulent ITC cases remain prosecutable at all amounts; (3) Reduced compounding amount from 25-150% to 25-100% of tax; (4) Removed certain sections from prosecution ambit. This protects small businesses from criminal liability for procedural lapses while maintaining strict punishment for fraud.
GSTAT is the GST Appellate Tribunal — a dedicated judicial body for GST disputes. Approved in the 49th Meeting: Structure includes a Principal Bench in New Delhi and State Benches across India. Each bench has 1 judicial member + 2 technical members. Purpose: Currently GST disputes go directly to High Courts (overwhelming them). GSTAT provides a specialized intermediate forum. It was formally constituted via Finance Act 2023 amendment and operationalized from late 2024.
The GoM (Group of Ministers) on online gaming submitted its report recommending 28% GST on the full face value of bets (not just platform fees). The Council discussed but deferred the final decision because: (1) Industry opposed full-value taxation as 'death knell'; (2) Casino states (Goa, Sikkim, Meghalaya) had reservations; (3) Need for broader stakeholder consultation. The final decision was eventually taken in the 50th-51st Meetings (July-August 2023) confirming 28% on full bet value effective 1 October 2023.
The Council approved a shift from ad-valorem (percentage of value) to capacity-based specific duty for pan masala, gutkha, and chewing tobacco. How it works: (1) Tax is levied per pouch-making machine based on production capacity; (2) Track & trace mechanism monitors actual production vs declared; (3) Reason: Massive under-reporting of production value in this sector (est. ₹4,000+ Cr annual evasion); (4) Similar to how cigarettes are taxed per stick. This was implemented via rules amendment effective April 2023.
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