GST COUNCIL RECOMMENDS GST RATES REDUCTION ON SEVERAL GOODS
GST COUNCIL RECOMMENDS GST RATES REDUCTION ON SEVERAL GOODS &for specified handicraft items
GST rates have been recommended to be brought down to Nil on Sanitary Napkins &Rakhi& more Goods GST Council recommends for allowing refund to fabrics on account of inverted duty structure Rate change made in respect of footwear
GST rates have been recommended to be brought down to Nil on Sanitary Napkins &Rakhi& more Goods GST Council recommends for allowing refund to fabrics on account of inverted duty structure Rate change made in respect of footwear
The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs took following decisions on GST Rate on Goods .
- GST rates reduction on 28% items:
- 28% to 18%
- Paints and varnishes (including enamels and lacquers)
- Glaziers’ putty, grafting putty, resin cements
- Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.
- Washing machines.
- Lithium-ion batteries
- Vacuum cleaners
- Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc
- Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc
- Televisions upto the size of 68 cm
- Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries
- Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of goods.
- Trailers and semi-trailers.
- Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations.
- 28% to 12%
- Fuel Cell Vehicle. Further, Compensation cess shall also be exempted on fuel cell vehicle.
- Refund of accumulated credit on account of inverted duty structure to fabric manufacturers:Fabrics attract GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued.
- III. GST rates have been recommended to be brought down from,-
- 18%12%/5% to Nil:
- Stone/Marble/Wood Deities
- Rakhi [other than that of precious or semi-precious material of chapter 71]
- Sanitary Napkins,
- Coir pith compost
- Sal Leaves siali leaves and their products and Sabai Rope
- PhoolBhariJhadoo [Raw material for Jhadoo]
- Khali dona.
- Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.
- 12% to 5%:
- Chenille fabrics and other fabrics under heading 5801
- Handloom dari
- Phosphoric acid (fertilizer grade only).
- Knitted cap/topi having retail sale value not exceeding Rs 1000
- 18% to 12%:
- Bamboo flooring
- Brass Kerosene Pressure Stove.
- Hand Operated Rubber Roller
- Zip and Slide Fasteners
- 18% to 5%:
- Ethanol for sale to Oil Marketing Companies for blending with fuel
- Solid bio fuel pellets
- IV. Rate change made in respect of footwear
- 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair
- Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%
- GST rates have been recommended to be brought down for specified handicraft items [as per the definition of handicraft, as approved by the GST council] from,-
- 18% to 12%:
- Handbags including pouches and purses; jewellery box
- Wooden frames for painting, photographs, mirrors etc
- Art ware of cork [including articles of sholapith]
- Stone art ware, stone inlay work
- Ornamental framed mirrors
- Glass statues [other than those of crystal]
- Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]
- Art ware of iron
- Art ware of brass, copper/ copper alloys, electro plated with nickel/silver
- Aluminium art ware
- Handcrafted lamps (including panchloga lamp)
- Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)
- Ganjifa card
- 12% to 5%:
- Handmade carpets and other handmade textile floor coverings (including namda/gabba)
- Handmade lace
- Hand-woven tapestries
- Hand-made braids and ornamental trimming in the piece
- Toran
- Miscellaneous Change relating to valuation of a supply:
- IGST @5% on Pool Issue Price (PIP) of Urea imported on Govt. account for direct agriculture use, instead of assessable value plus custom duty.
- Exemption from Compensation cess to Coal rejects from washery [arising out of cess paid coal on which ITC has not been taken].
- Clarifications/amendments as regards applicability of GST rate in respect of certain goods recommended by GST Council which inter-aliaincludes:
- Milk enriched with vitamins or minerals salt (fortified milk) is classifiable under HS code 0401 as milk and exempt from GST.
- 5% GST on both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.
- Beet and cane sugar, including refined beet and cane sugar, (falling under heading 1701) attracts 5% GST rate.
- Water supplied for public purposes (other than in sealed containers) does not attract GST.
- Marine engine (falling under sub-heading 8408 10 93) attracts 5% GST rate.
- Kota stone and similar stones [ other than marble and granite] other than polished will attracts 5% GST, while ready to use polished Kota stoneand similar stones will attracts 18%.
- Certain other miscellaneous clarification as regards classification/rate have been recommended
[This note presents the decision of the GST Council in simple language for ease of understanding which would be given effect to through Gazette notifications/circulars which shall have force of law.]
***********************
GST rate on Services
The GST Council in its 28th meeting
held here today under the Chairmanship of Shri Piyush Goyal , Union Minister
for Railways , Coal , Finance & Corporate Affairs took following
decisions relating to exemptions / changes in GST rates / ITC eligibility
criteria, rationalization of rates / exemptions and clarification on levy of
GST on services. The decisions of the GST Council enclosed as annexure has been
presented in simple language for ease of understanding which would be given
effect to through Gazette notifications/ circulars which shall have force of
law.
It would be noted that multiple reliefs from GST
taxation have been provided to following categories of services –
(i) Agriculture, farming and food processing
industry,
(ii) Education, training and skill development,
(iii) Pension, social security and old age support.
Hotel industry has been given major relief by
providing that the rate of tax on accommodation service shall be based on
transaction value instead of declared tariff.
Services provided in sectors like banking, IT have
been provided relief by exempting services supplied by an establishment of a
person in India to any establishment of that person outside India [related
party].
As a green initiative, GST on supply of e-books has
been reduced from 18 to 5%.
For details of major decisions on services,
annexure to this press note may be referred.
It is proposed to issue notifications giving effect
to these recommendations of the Council with effect from27th July
, 2018.
ANNEXURE - EXEMPTIONS / CHANGES IN GST RATES AND
SERVICES
Sector –Farmers/ Agriculture/ Food Processing
1.
Exempt services by way of artificial insemination of livestock (other than
horses).
2.
Exempt warehousing of minor forest produce in line with exemptions provided to
the agricultural produce.
3.
Exempt the works of installation and commissioning undertaken by DISCOMS/
electricity distribution companies for extending electricity distribution
network upto the tube well of the farmer/ agriculturalist for agricultural use.
4.
Exempt services provided by FSSAI to food business operators.
Education/ Training/ Skill Development
5.
Reduce rate of GST from 18% to 5% on supply only of e-books for which print
version exist.
Social Security/ Pension Security/ Senior Citizens
6.
Exempt services provided by Coal Mines Provident Fund Organisationto the PF
subscribers from the applicability of GST on the lines of EPFO.
7.
Exempt supply of services by an old age home run by State / Central Government
or by a body registered under 12AA of Income Tax Act) to its residents (aged 60
years or more) against consideration upto Rupees Twenty Five Thousand per month
per member provided consideration is inclusive of charges for boarding, lodging
and maintenance.
8.
Exempt GST on the administrative fee collected by National Pension System
Trust.
9.
Exempt services provided by an unincorporated body or a non-profit entity
registered under any law for the time being in force, engaged in activities
relating to the welfare of industrial or agricultural labour or farmer; or for
the promotion of trade, commerce, industry, agriculture, art, science,
literature, culture, sports, education, social welfare, charitable activities
and protection of environment, to own members against consideration in the form
of membership fee up to an amount of one thousand rupees per member per
year.
Banking/ Finance/ Insurance
10. Exempt
Reinsurance Services provided to specified Insurance Schemessuch as Pradhan
Mantri Rashtriya Swasthya Suraksha Mission (PMRSSM) (Ayushman Bharat),
funded by Government.
Government Services
11. Exempt
services provided by Government to ERCC by way of assigning the right to
collect royalty, DMFT etc. from the mining lease holders.
12. Exempt the
guarantees given by Central/State Government/UT administration to their
undertakings/PSUs.
Miscellaneous
13. ExemptGST
on import of services by Foreign Diplomatic Missions/ UN & other
International Organizations based on reciprocity.
14. Exempt
services supplied by an establishment of a person in India to any establishment
of that person outside India, which are treated as establishments of distinct
persons in accordance with Explanation I in section 8 of the IGST Act provided
the place of supply is outside the taxable territory of India in accordance
with section 13 of IGST Act
15. Prescribe
GST rate slabs on accommodation service based on transaction value instead of
declared tariff which is likely to provide major relief to the hotel industry.
16. Prescribe
GST rate of 12% with full ITC under forward charge for composite supply of
multimodal transportation.
17. Rationalize
thenotificationentry prescribing reduced GST rate on composite supply of works
contract received by the Government or a local authority in the course of their
sovereign functions.
18. Rationalize
entry relating to composite supply of food and drinks in restaurant, mess,
canteen, eating joints and such supplies to institutions (educational, office,
factory, hospital) on contractual basis at GST rate of 5%; and making it clear
that the scope of outdoor catering under 7(v) is restricted to supplies in case
of outdoor/indoor functions that are event based and occasional in nature.
Clarifications
19. Supply of
services provided by State and Central educational boards to students for
conduct of examination will be clarified to be exempt.
20. To clarify
that the courses run by private ITIs for designated trades are exempt under GST
whereas non-designated courses are taxable.
21. To clarify
that GST on premium paid by the Governments for implementing PradhanMantri
Rashtriya Swasthya Suraksha Mission (PMRSSM) (Ayushman Bharat) is exempt
from GST.
22. To provide
clarification on applicability of Service Tax / GST on services rendered by an
Indian Architect- Consultant in relation to immovable property located outside
India to Indian Diplomatic Missions/Posts abroad.
23. To clarify
to Auroville foundation that‘maintenance’ paid by it to Auroviliansis not
liable to GST.
24. To insert
an explanation in notification No. 13/2017-Central Tax(Rate) to define the term
renting of immovable property.
25. To clarify
that certain services such as “deposit works(expenses for providing electric
line/plant)” related to distribution of electricity provided by DISCOM, attract
GST.
Export / other trade facilitation measures
26. Extend the
exemption granted on outward transportation of all goods by air and sea by
another one year i.e. upto 30th September, 2019 as relief to the exporter of
goods.
27. Place
liability to pay GST on services provided by individual DSAs to banks/NBFCs
under reverse charge on the buying banks/NBFCs. However, services by
non-individual NBFCs (corporate, partnership firms) to banks/NBFCs would
continue under forward charge, as at present.
GST council approves Simplified GST
Return
The GST Council in its 28th meeting
held here today under the Chairmanship of Shri PiyushGoyal , Union Minister for
Railways , Coal , Finance & Corporate Affairs has approved the new return
formats and associated changes in law. It may be recalled that in the 27thmeeting
held on 4thof May, 2018 the Council had approved the basic
principles of GST return design and directed the law committee to finalize the
return formats and changes in law. The formats and business process approved
today were in line with the basic principles with one major change i.ethe
option of filing quarterly return with monthly payment of tax in a simplified
return format by the small tax payers.
All taxpayers excluding small taxpayers and a few
exceptions like ISD etc. shall file one monthly return. The return is simple
with two main tables. One for reporting outward supplies and one for availing
input tax credit based on invoices uploaded by the supplier. Invoices can be
uploaded continuously by the seller and can be continuously viewed and locked
by the buyer for availing input tax credit. This process would ensure that very
large part of the return is automatically filled based on the invoices uploaded
by the buyer and the seller. Simply put, the process would be “UPLOAD – LOCK –
PAY” for most tax payers.
Taxpayers would have facility to create his profile
based on nature of supplies made and received. The fields of information which
a taxpayer would be shown and would be required to fill in the return would
depend on his profile.
NIL return filers (no purchase and no sale) shall
be given facility to file return by sending SMS.
The Council approved quarterly filing of return for
the small taxpayers having turnover below Rs. 5 Cr as an optional facility.
Quarterly return shall be similar to main return with monthly payment facility
but for two kinds of registered persons – small traders making only B2C supply
or making B2B + B2C supply. For
such taxpayers, simplified returns have been designed called Sahaj and
Sugam. In these returns details of information required to be filled is lesser
than that in the regular return.
The new return design provides facility for
amendment of invoice and also other details filed in the return. Amendment
shall be carried out by filing of a return called amendment return. Payment
would be allowed to be made through the amendment return as it will help save
interest liability for the taxpayers.
93% of the taxpayers have a turnover of less than
Rs 5 Cr and these taxpayers would benefit substantially from the simplification
measures proposed improving their ease of doing business. Even the large
taxpayers would find the design of new return quite user friendly.
Post a Comment