Recommendations made during GST Council meeting held on 22.12.2018
By: – Ganeshan Kalyani
Goods and Services Tax – GST
Dated:- 26-12-2018
Due date of filing GST Annual Return is extended
* Due date of filing GST Annual returns in FORM GSTR-9, FORM GSTR-9A & reconciliation statement in FORM GSTR-9C for the F.Y. 2017-18 shall be further extended till 30.06.2019.
Change in GST rate from 28% to 18%
Pulleys, transmission shafts and cranks, gear boxes etc. falling under HS Code 8483.
Monitors and TVs of upto screen size of 32 inches.
Re-treaded or used pneumatic tyres or rubber
Power bank of lithium ion batteries. Lithium ion batteries are already at 18%.
Digital cameras and video camera recorders
Video games consoles and other games and sports requisites falling under HS Code 9504.
Change in GST rate from 28% to 5%
Parts and accessories for the carriages for disabled persons
Change in GST rate from 18% to 12%
Cork roughly squared or debagged.
Articles
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for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
Rate of 5%/18% to be applied based on transaction value of footwear
Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
Change in service tax rates:
Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).
GST rate on cinema tickets above ₹ 100 shall be reduced from 28% to 18% and on cinema tickets upto ₹ 100 from 18% to 12%.
GST rate on third party insurance premium of goods carrying vehicles shall be redu
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ify that the services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act, 1966.
To clarify to West Bengal that services provided by Council/ Board of Primary/ Secondary/ Higher Secondary Education for conduct of examination to its students are exempt.
To clarify that “printing of pictures” falls under service code “998386: Photographic and videographic processing services” of the scheme of classification of services attract GST @18% and not under “998912: Printing and reproduction services of recorded media, on a fee or contract basis”which attracts GST @12%.
To clarify that leasing of pumps and reservoirs by the OMCs to petrol pump dealers is a mixed supply and the Licence Fee Recovery (LFR) charged for the same shall be leviable to GST @ 28%, the rate applicable to pumps. Leasing of land and buildings along with equipment shall fall under heading 9972 (real estate services) and attract GST rate of 18%.
To clarify that the incentive
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y other person based on a contractual arrangement with such institutions.
To clarify that the banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent.
To issue a clarification to Food Corporation of India (FCI) that the service provided by godown owner in case of lease with services, where the godown owner, besides leasing the warehouse, undertakes to carry out activities of storage and preservation of stored food grains, is the service of storage and warehousing of agricultural produce and the same is exempt.
GST on solar power generating plant and other renewable energy plants:
GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants a
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vement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for further supply of such goods but for the provision of service does not involve a supply (e.g., movement of testing equipment etc.) and is not be liable to GST.
The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44 attract GST at the rate of 12%.
Concessional GST rate of 5% applies to the LPG supplied in bulk to an OMC by refiners/fractioners for bottling for further supply to household domestic consumers.
Manure of determination of classification of vitamins, provitamins etc. as animal feed supplements
Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP falls under HS code 3923 and attract 18% GST rate.
18% GST is applicable on wood logs including the wood in rough/log used for pulping.
Turbo charger is c
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y on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be levied only on the amount payable through the electronic cash ledger.
Changes in GST Annual Return Form
Present return format has heading to specify the supplies as declared in returns filed during the year need to be furnished. Now, the heading is amended to specify the supplies as made during the year.
Presently, HSN code of all inward supplies need to be furnished in GST Annual return. Now, it is proposed that HSN code of those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies shall be declared.
All invoices pertaining to previous year irrespective of month in which such invoice is reported in FORM GSTR-1 by the supplier and auto populated in GSTR-2A of the recipient would be auto-populated in Table 8A of GST Annual return.
ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C.
Monthly Return
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ot basis. The modalities for the same shall be finalized shortly.
All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01 shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax officer for submission of a refund application. GSTN will enable this functionality on the common portal shortly.
Following types of refunds shall be made available through FORM GST RFD-01A
* Refund on account of Assessment / Provisional Assessment / Appeal / Any other Order.
* Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa
* Excess payment of tax and
* Any other refund
In case of applications for refund in FORM GST RFD-01A (except those relating to refund of excess balance in the cash ledger) which are generated on the common portal before the roll out of the functionality described and wh
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ived only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2017 to December, 2018 by such taxpayers shall be extended till 31.03.2019.
Late fee on delay filing of return is waived
Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months/quarters July, 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019.
E-way bill can be generated only if GST return is filed
Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN / NIC make available the required functionality.
Changes made in the Act would be notified w.e.f. 01.02.2019:
Changes made by CGST (Amendment) Act
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e collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.
The Group of Ministers will be assisted by the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning), who would study and share the findings with GoM. The GoM in turn would give its recommendation to the GST Council. The members of the GoM and the Committee of experts would be announced in due course of time.
The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly.
Reply By Devender Wadhwa as =
Dear Sir,
Can you please discuss that this change in the GST rate affects the sector majorly and how much inflation is reduced (Expected)?
Dated: 27-12-2018
Reply By KASTURI SETHI as =
Dear Sh.Kalyani Ji,
Nice compilation. It is ready recknor and useful.
K.L.SETHI
Dated: 27-12-2018
Reply By Gan
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