Here are the key decisions from the 49th GST Council meeting

The GST Council has decided to clear all pending dues of pertaining to GST compensation to states today itself. Speaking after the 49th meeting of the Council in New Delhi on Saturday, February 18, Finance Minister Nirmala Sitharaman said that some of the compensation dues, pending for the month of June will be cleared today itself, even as the amount is not available in the compensation cess kitty.

The minister further said that the funds will be released from the consolidated fund of India and recouped later. Rs 16,892 crore will be released among 23 states as compensation dues, according to revenue secretary Sanjay Malhotra. The revenue secretary further said that once AG-certified figures are available, another Rs 16,524 crore will be released to six states.

The news was earlier confirmed by Tamil Nadu Finance Minister P Thiaga Rajan, who said that Tamil Nadu is expected to receive Rs 4,233 crore as part of this clearance.

Rates on Rab or liquid jaggery has been cut to nil from 18 percent earlier if sold in loose form. In case it is pre-packaged, the rate has been cut to five percent.

Rates on pencil sharpeners has been cut to 12 percent from 18 percent earlier.

Rates on tax trackers has been cut to 12 percent from 18 percent but that is subject to conditions. Services provided by courts will be charged at Reverse Change Mechanism (RCM).

A decision has also been taken to rationalise the late fee on delayed filing of annual returns or GSTR9 for small taxpayers with an annual turnover of up to Rs 20 crore.

Two reports from the Group of Ministers (GoM) have also been accepted by the council. One of which is the capacity based taxation on Gutka Pan Masala and chewing tobacco.

The other one is on the GST Appellate Tribunals (GSTATs) with certain changes in language. The modification in language will be made and a draft will be circulated tomorrow with the members. Further clarification will then by included and circulated again with the members as a final draft post the comments.

"We are doing this exercise as there would not be enough time to meet again before the finance bill and we would like to include the constitution of GSTATs as part of the Finance bill, the Finance Minister said.

On GSTATs, the minister also said that the interest of states will not suffer, whether on representation in terms of members, number of benches and the location of the tribunals.

Millet-based Products: Discussions did take place but there were certain reservations with respect to the composition of the products. As a result, no decision could be arrived at.

Cement: Not on the agenda but the GST Council may take up the proposal on rationalisation of GST rate on cement in its next meeting. Sources told CNBC-TV18 that the industry's proposal has been sent to the fitment committee for discussion.

On tax treatment of MUVs at par with SUVs: Revenue Secretary Sanjay Malhotra said that officers of the fitment committee could not arrive at any recommendation as the time was short and they still want more discussions to take place.

The finance minister also spoke about the GoM report on online gaming and said that the report has been submitted but the chair of the GoM - Meghalaya Chief Minister Conrad Sangma could not attend the meeting due to state elections.

"It is not appropriate to discuss the report without him so we decided to wait on it," the minister said.

Revenue Secretary further added that till the time a new mechanism to tax online gaming etc. is not in place, the law of the land will continue, implying that the current law to tax at an aggregate value at 28 percent will continue.