The GST Council met for its 25th meeting today in New Delhi. The GST Council, headed by Finance Minister Arun Jaitley and having state finance ministers as members reduced the Goods and Services Tax on about 20 items and also raised the tax rate for certain items. The Council also reduced tax rate on some services. Mr Jaitley also said the new rates will be effective from January 25 and that the Council had considered simplification of the return filing process during the meeting.
Here are the key points
1. E-way bill system testing continues till January 25, loading will be made must from Feb 1.
2. 3B Returns filing may continue and suppliers may continue to load invoices .
3. 15 states agree on intra-state e-way bill.
4. Decision on petroleum products deferred.
5. No decision on real-estate, will be taken up in next meet.
6. 29 Handicraft items have been put in 0% slab. GST rates have also been reduced in few agricultural products.
7. The GST Council also discussed how buyers should upload purchases invoices, and the sellers should upload sale invoices.
8. Collection under composite scheme only Rs 307 crore.
9.The fitment committee will fix the rates for about 40 handicraft items.
10. A few more items may be added to the list.
11. Rs 35,000 crore of Integrated GST will be provisionally divided between the Centre and states.
12. Rates revised for 29 goods, 53 services categories.
Here are the changes to tax rates of Goods recommended by the GST Council:
List of goods on which GST rate recommended for reduction from 28 per cent to 18 per cent:
- Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
- Buses, for use in public transport, which exclusively run on bio-fuels.
List of goods on which GST rate recommended for reduction from 28 per cent to 12 per cent:
- All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.
List of goods on which GST rate recommended for reduction from 18 per cent to 12 per cent:
- Sugar boiled confectionary
- Drinking water packed in 20 litters bottles
- Fertilizer grade Phosphoric acid
- Bio-diesel
- Bio-pesticides
- Bamboo wood building joinery
- Drip irrigation system including laterals, sprinklers
- Mechanical Sprayer
List of goods on which GST rate recommended for reduction from 18 per cent to 5 per cent:
- Tamarind Kernel Powder
- Mehendi paste in cones
- LPG supplied for supply to household domestic consumers by private LPG distributors
- Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads.
List of goods on which GST rate recommended for reduction from 12 per cent to 5 per cent:
- Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork
List of goods on which GST rate recommended for reduction from 12 per cent to 5 per cent with no refund of unutilised input tax credit:
- Velvet fabric
List of goods on which GST rate recommended for reduction from 3 per cent to 0.25 per cent:
- Diamonds and precious stones
List of goods on which nil GST will be charged:
- Vibhuti
- Parts and accessories for manufacture of hearing aids.
- De-oiled rice bran
List of goods on which GST rate recommended for increase from 12 per cent to 18 per cent:
- Cigarette filter rods
List of goods on which GST rate recommended for increase from nil to 5 per cent:
- Rice bran (other than de-oiled rice bran)
Regards
Team EP
This post was last modified on January 18, 2018 10:59 pm