Minutes of the 14th GST Council Meeting held on 18 and 19 May 2017
14th GST Council Meeting Dated:- 19-5-2017 GST Council – Minutes
GST
Minutes of the 14th GST Council Meeting held on 18 and 19 May 2017
The fourteenth meeting of the GST Council (hereinafter referred to as 'the Council') was held on 18 and 19 May 2017 in Sher-i-Kashmir International Conference Centre (SKICC), Srinagar under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the Council who attended the meeting is at Annexure 1. The list of officers of the Centre, the States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2.
2. The following agenda items were listed for discussion in the 14th Meeting of the Council-
1. Confirmation of the Minutes of the 13th GST Council Meeting held on 31 March 2017
2. Rate of interest for delayed payment of tax by the taxpayer and delayed re
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
item with the permission of the Chairperson
11. Date of the next meeting of the GST Council
3.1. The Hon'ble Chairperson welcomed all the Members to the Council Meeting. He conveyed the sad news that Shri Anil Madhav Dave, the Union Minister for Environment had passed away on 18 May, 2017. The Hon'ble Members of the Council observed one-minute silence in memory of the departed soul.
3.2. At the start of the proceedings, the Hon'ble Chairperson placed on record his profuse thanks to Dr. Haseeb A. Drabu, the Hon'ble Finance Minister of Jammu & Kashmir and all his colleagues for the outstanding arrangements for the Meeting. He observed that this had set at rest any lurking doubts regarding the environment in the State and the feasibility of holding the Council meeting in Srinagar. He added that all participants were surprised and happy to find normalcy in Sri nagar. The Hon'ble Minister from Jammu & Kashmir thanked the Council for accepting their invitation to hos
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ise duty despite the fact that 32% of the total Central Excise collection was being devolved to the States. He added that since devolution of Central taxes in the divisible pool to the States had been enhanced to 42%, the liability of States to reimburse the Central Goods and Services Tax (CGST) collected in the GST regime should at best be limited to 10%. The Secretary to the Council (hereinafter referred to as the Secretary) recalled that in the 2nd meeting of the Council, it was decided that if the Central Government continued with the present areabased exemption scheme, it shall reimburse only 58% of the total CGST collected from the eligible industries due to the fact that only 58% of the CGST revenue shall remain in the onsolidated Fund of India and that the remaining 42% shall be devolved to the States. He stated that if any Value Added Tax (VAT) exemption was given to such units, the State concerned could reimburse this tax amount collected as State Goods and Services Tax (SGST
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
overnment was not obliged to continue with the same in the GST regime. He added that presently, the discussion was limited to the Minutes of the last Council meeting and enquired whether the version of the Hon'ble Minister from Uttarakhand recorded therein required any modification. The Hon'ble Minister from Uttarakhand did not propose any modification to his version recorded in the Minutes.
5. In view of the above discussion, for Agenda item 1, the Council decided to adopt the Minutes of the 13th Meeting of the Council without any changes.
Agenda Item 2: Rate of interest for delayed payment of tax by the taxpayer and delayed refund by the Government to the taxpayer:
6. Introducing this Agenda item, the Secretary stated that Section 50(1) and Section 50(3) of the CGST Act and the SGST Acts provided for an upper ceiling of rate of interest of 18% and 24% respectively to be paid by the taxpayer in specified circumstances. He further stated that Section 56 of the CGST Act and t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hat the rate of interest should be simple interest per annum and should be the same as the prescribed upper ceiling of interest rates under Sections 50(1) (18%), 50(3) (24%), 54(12) (6%), and 56 (6% for the main Section and 9% for the proviso to Section 56) of the CGST Act and the SGST Acts and the same would be made applicable under the IGST Act under corresponding circumstances. He suggested that the Council could agree to this suggestion and approve rates of simple interest per annum at the upper prescribed ceilings under the various Sections. The Council agreed to this suggestion.
7. For agenda item 2, the Council approved the following rates of simple interest per annum for the delayed payment of tax by the taxpayer and the delayed refund by the Government to the taxpayer: –
SI. No.
Section
Rate of Simple Interest per annum
approved by the Council
1
Section 50 (1) of the CGST Act/ SGST Acts
and under corresponding circumstances in
the IGST Act (Section 20)
18%
2
Secti
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ade through him by other suppliers and to pay the same to the Government by the 10th of the following month of the collection. He stated that this provision was essentially meant to create an audit trail for a supplier who made supplies through the electronic platform of others. He stated that this agenda item was discussed during the meeting of officers of the States and the Centre held in Srinagar on 17 May, 2017 and that there was a broad agreement that the rate of TCS under Section 52(1) of the CGST Act and the SGST Acts could be 0.5% under each Act and 1 % under the second proviso to Section 20 of the IGST Act. He suggested that the Council might approve these rates of TCS. The Council approved this suggestion.
8.2. For agenda item 3, the Council approved the following rates for Tax Collection at Source (TCS) by Electronic Commerce Operators (e-operators):
SI. No.
Section
Rate of TCS approved by
the Council
1
Section 52 (1) of the CGST Act and the SGST Acts
0.5% under each
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n,
payment of tax, furnishing of returns, computation and settlement of integrated tax, electronic way bill and for carrying out such other functions and for such purposes as may be prescribed. ”
9.2. The Secretary proposed that the Council might approve to issue a notification to the effect that www.gst.gov.in shall be the Common Goods and Services Tax Electronic Portal specified under Section 146 of the CGST (which would also be applicable to the IGST Act by virtue of Section 20 of the IGST Act) and the SGST Acts, and Section 21 of the UTGST Act and that this website was being managed by the Goods and Services Tax Network on behalf of the Government. The Council approved this proposal.
9.3. For agenda item 4, the Council approved the proposal to issue a notification that www.gst.gov.in shall be the Common Goods and Services Tax Electronic Portal specified under Section 146 of the CGST and the SGST Acts and Section 21 of the UTGST Act, which is being managed by the Goods and Servic
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
am (PMT) comprising officers from the Centre, States and the GST Council. GST Council Secretariat shall act as the project management office of the project GST. It was proposed to create eight Standing Committees to look after various aspects of the project. Each Committee shall have two Convenors, one each from the Centre and State. Each Committee would be expected to identify steps to be taken in their area of responsibility and to provide a blue-print for step wise action to be undertaken with target dates. This would lead to uniformity and clarity regarding actions to be taken by the respective revenue administrations and the expected time-lines for the same.
The Convenors of the Committee shall be the Nodal officers to give inputs to the Project Management Team on issues relating to their area of responsibility. The decisions could be taken by the individual Standing Committees to the extent possible, and where necessary, at the level of the PMT. PMT might place issues of importa
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rks
(c) Single interface Committee
(i) Coordinating migration and verification of past credit
(ii) Rules for single interface including in the IGST in coordination with Law Committee
(iii) State-wise coordination teams for assigning taxpayers
(iv) Any other administrative issue needing resolution at the State level
(d) Fitment Committee
(i) Recommending rates of taxes on all commodities and services
(ii) Recommending interest rates under various Sections and Rules
(iii) Recommending Composition rates
(iv) Recommending any other rate provided in Act or Rules
(v) Examining all representations of trade on rate and other issues
(e) Publicity and Outreach Committee
(i) Publicity in print, electronic and social media
(ii) Outreaching taxpayers
(iii) Circulating publicity material for uniformity of messaging
(iv) Publicity in vernacular media particularly on issues such as cascading of taxes, benefits of GST, anti-profiteering etc.
(f) Capacity Building and Facil
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hese sectors, Guidance Notes might also be required to be issued, including in regional languages. He stated that the Sectoral Groups could be constituted for the following sectors: –
(i) Banking, Financial and Insurance Sector
(ii) Telecommunication
(iii) Exports including EOUs and SEZs
(iv) IT/ITES
(v) Transport and Logistics
(vi) Textiles
(vii) MSMEs, includingjob work
(viii) Oil and Gas (upstream and downstream)
(ix) Gems and Jewellery
(x) Services received and provided by the Government
(xi) Food Processing Sector
(xii) E-commerce
(xiii) Big Infrastructure (Airport, Sea port- including MRO)
(xiv) Travel and Tourism
(xv) Handicrafts (Exports)
(xvi) Media and Entertainment
(xvii) Drugs and Pharmaceuticals
10.5. The Secretary further informed that in the agenda note circulated by the Council for this agenda item, 17 sectors were identified for sectoral analysis and that during the meeting of the officers of the Centre and the States held on 17 May,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
at sufficiently senior level. He stated that during the meeting of the officers of the Centre and the States held on 17 May, 2017 in Srinagar, it was suggested that there should be one member from each of the four zones of the country and that in this view, there should be four members from the States in the PMT. The Council agreed to this suggestion. As regards the constitution of the various Committees, the Secretary informed that on the suggestions received, the Council had tentatively constituted the Committees. He stated that while the Convenors of the Committees had been identified, the States could give names for inclusion as members in various Committees. He further observed that these Committees would be vested more with responsibility rather than authority and that decisions would lie with the Council. He stated that the PMT could take quick decisions on the basis of recommendations of the relevant Committee and that these Committees would need to meet very often. He stated t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
esirous of becoming members of various Committees should give the name of the officers in writing to the Council. The Hon'ble Minister from Kerala stated that the decisions of the PMT should be circulated to the Council. The Council agreed to this suggestion.
10.8. For agenda item 5, the Council approved the following:
(i) A 3-tier structure for Project Management ofGST consisting of the office of the Revenue Secretary, a Project Management Team called GST Implementation Committee (4 officers from States, 4 from the Centre and 1 from GST Council) and eight Standing Committees. In addition, there shall be 18 Sector Groups (including one on Mining Sector).
(ii) To authorize the Chairperson, GST Council, to constitute the GST Implementation Committee and other Standing Committees and the Sectoral Working Groups after incorporating further nominations received from the States and carry out changes in scope and nomenclature of Committees/Groups, wherever required.
(iii) To include P
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Empowered Committee of State Finance Ministers may, post amendment, refer to GST Council. He further added that in place of “Ex-officio Member Secretary, EC”, Clause 48 should read as “Ex-officio Additional Secretary, GST Council”. He stated that in view of this, it was proposed that Additional Secretary, GST Council may be nominated as Ex-Officio Director on the Board of GSTN to replace Shri Satish Chandra. The Council approved the proposal.
11.2. For agenda item 6, the Council approved the nomination of Additional Secretary, GST Council as ex-officio Director on the Board of GSTN in place of the erstwhile Member Secretary, Empowered Committee of State Finance Ministers (EC).
Agenda Item 7: Approval of mechanism to split the Merchant Discount Rate (MDR) charges between the Centre and the States:
12.1. Introducing this agenda item, the Secretary stated that to incentivize the use of digital economy, the Government of India had decided to bear the applicable Merchant Discount Rate (
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
edit. He stated that similarly, SGST collected by States would also be used for payment of IGST due to cross-utilization. He expressed that a cleaner way of sharing ofMDR charges between the Government of India and the States might be to split these charges, in proportion of the final GST revenues accruing to the States and the Centre after cross-utilization and apportionment processes are finalized.
12.2. The Secretary informed that this agenda item was discussed during the meeting of the officers in Sri nagar on 17 May, 2017 and some States like Haryana, Assam, Rajasthan and Odisha had not favoured putting additional financial burden on the State Governments. He further stated that some States desired to know the likely financial burden on the State Governments if the MDR charges for payment of GST by debit card up to Rs.l lakh was to be borne by the State Governments and the Central Government. He also informed that Uttar Pradesh had suggested that the Central Government could bear
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ion, a fresh agenda item could be introduced on a later date. The Council agreed to this suggestion.
12.3. For agenda item 7, the Council approved to defer the agenda item for consideration and to consider it on a later date after ascertaining the likely financial implications of this proposal.
Agenda item 8: Approval of amendments to the following Draft GST Rules and related Forms: (i) Registration; (ii) Return; (iii) Payment; (iv) Refund; (v) Invoice, Debit/Credit Note; (vi) Input Tax Credit; (vii) Valuation; (viii) Transitional Provisions; and (ix) Composition:
13.1. Introducing this agenda item, the Secretary recalled that the Council had approved nine GST Rules during its 13th Meeting held on 31 March, 2017 and that these were put in the public domain and sent to the States. He informed that before the 14th Council meeting, the Law Committee could finalise seven GST Rules and the connected Forms, which were circulated as Volume-2A and Volume-2Bof the Agenda Note respectively. H
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
REG RULE 12.
(ii) The word “Registration. 16” may be replaced with “Registration17″ in Rule 1 of Composition Rules.
(iii) Under Rule 7(1) (i) of the ITC Rules, {'F' is the total turnover of the registered person during the tax period”} may be replaced with {'F' is the total turnover in the State of the registered person during the tax period”} to bring in more clarity.
13.2. Starting the discussion on this agenda item, the Hon'ble Minister from Uttarakhand stated that Rule 4 of the Registration Rules provided for separate registration for multiple business verticals within a State and enquired as to what treatment would be given to a trader who sold various items like cloth, sanitary ware, hosiery, etc. when his combined turnover exceeded Rs. 20 lakh. The Secretary stated that the trader would be required to take only one registration and that if he was only making supplies to consumers (B2C), he would not be required to file invoice-wise details. He sta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ST Rules on Return were taken up for discussion. The Hon'ble Minister from Kerala requested to circulate a note on the scheme of matching of returns under GST. The Hon'ble Minister from Kerala raised another issue as to what mechanism was there to ensure that a vehicle transporting taxable goods interstate was carrying invoice. Commissioner (GST Policy Wing), CBEC, stated that a separate e-way bill Rules would address this issue and that when goods were handed over to the transporter, an e-way bill would be generated. He informed that several comments had been received on the draft e-way bill Rules and after examining them, the Rules on e-way bill would be brought before the Council. The CEO, GSTN, added that where a transport vehicle carried multiple inv?ice for multiple people, a unique code would be generated and this could be checked anywhere on the way. He added that this code could also be accessed on mobile phone and the e-way bill would give details regarding the goods
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
re) Code and how the manufacturer of tractor would declare the same. Dr. P.D. Vaghela, Commissioner of Commercial Tax (CCT), Gujarat, clarified that inputs would be accounted separately and ITC would be available on such inputs and the final product (tractor) would be declared separately under a different HSN Code. The Hon'ble Minister from Uttarakhand also raised the issue of difficulties that job workers for jewellery would face in declaring the HSN Code. The Secretary stated that this issue could be discussed when fitment rate for gold was discussed which was not in the agenda item for this Meeting.
13.4. Shri Somesh Kumar, Principal Secretary (Revenue), Telangana, raised a few questions relating to the Registration Rules, First, he pointed out that in Rule 9 of the Registration Rules (dealing with suo moto registration), it was provided that every person to whom a temporary registration had been granted shall submit an application for registration within 90 d
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
lty would apply, On the third question, he stated that the requirement Of one-year validity period Of a registration was kept only for those taxable persons who had taken registration voluntarily though they were within the exemption threshold. On the fourth question, he clarified that physical verification of a registered premises after the grant of registration would be done only in exceptional cases which would be decided by the computer on the basis of risk parameters.
13.5. The Hon'ble Minister from Meghalaya observed that in Rule l(e) of the Tax Invoice Rules, the requirement of recording the name and address of the recipient was only for those transactions where the value of taxable supply was Rs. 50,000 or more and suggested that this value limit should be lowered. The Secretary stated that this issue was discussed earlier during the 13th Council Meeting (held on 31 March, 2017) and it was explained that any reduction in the monetary limit from Rs. 50,000
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ons from the North-Eastern States to buy goods from Silchar or Guwahati. He stated that an exception should be made in the Rules regarding the monetary limit for recording the address of the purchasers in B2C transactions. The Secretary stated that the issue did not relate to the North-Eastern States but to its neighbouring States where such an exception in the relevant Tax Invoice Rules would need to be made. The Hon'ble Minister from Meghalaya stated that the threshold for recording address of the purchaser on the invoice should be reduced from Rs. 50,000 as otherwise smaller States like Meghalaya would lose revenue. The Hon'ble Minister from Bihar stated that different States had different issues and all could not be addressed in the GST Law. He observed that pe ople from Bihar bought blankets from outside the State and Bihar would not get any tax from this transaction if invoice did not have the address of the purchaser on record. The Hon'ble Minister from Meghalaya sta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ategory States, implementation of this provision in its current form would lead to loss of revenue. The Commissioner (GST Policy Wing), CBEC, stated that a special provision in respect of this Rule would be required in the neighbouring States like West Bengal. The Hon'ble Deputy Chief Minister of Gujarat stated that North-Eastern States were good tourist destinations and they would also get revenue for purchases below Rs. 50,000 by tourists from outside the State. The Hon'ble Minister from Kerala enquired whether a consumer could insist on writing his address on an invoice of value below Rs. 50,000. The Hon'ble Minister from Meghalaya suggested that this requirement should be made compulsory in the Invoice Rules. The Hon'ble Deputy Chief Minister of Arunachal Pradesh suggested that there should be a provision in the Invoice Rules that the address of the buyer would be recorded in an invoice where the buyer insisted on it. The Secretary suggested that a provision to this
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
orded in an invoice where the buyer insists on it.
Agenda Item 9: Approval of the Fitment of goods and services into the various rate slabs:
15.1. Introducing this agenda item, the Secretary stated that in the 4th Council Meeting (held on 3-4 November, 2016), the Council had laid down a set of guiding principles in respect of bands of rates of GST and GST Compensation mechanism and that officers of the Fitment Committee consisting of the Central Government and ten State Governments met three times (for a total of six days) and finalised its recommendations on rates on the basis of these guiding principles. He stated that the Committee had recommended the rates after taking into account the present tax incidence on account of Central Excise, Service Tax and VAT (including cascading on account of these taxes) as well as embedded taxes and the incidence of CST, Octroi, Entry Tax, etc. He added that in certain cases, the Committee had recommended lower/higher GST rates, vis-a-vis the pre
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e recommended continuation of exemptions in the form of IGST exemptions. These cases included Multilateral/Bilateral Commitments [including exemption for goods in transit to the land locked Countries], re-import or re-export cases and passenger facilitation at international Airports.
15.3. He further stated that in the case of services, the Committee largely followed the following principles while recommending the GST rate structure: (a) continuance of exemption for certain services, so as to maintain present tax incidence on services; (b) To suggest broadly the same GST rate for different modes of transportation services, more or less at the present rates [lower than the general standard rate of 18% for services] because the inputs for transportation sector such as fuel, etc. were not in GST; (c) Withdrawal of exemptions in certain cases where such exemptions had been extended because of lack of jurisdiction; (d) Withdrawal of exemption in certain cases, like Works Contract [a compos
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ods, circulated before the Council Meeting) covered about 1211 items at 4-digit HSN classification (total items at 8-digit being about 11,000) and out of these, about 88 items were largely in the exempt List (constituting 7% of the total goods at the 4-digit level), about 173 items were in the 5% List (constituting 14% of the total goods at the 4-digit level), about 200 items were in the 12% List (constituting 17% of the total goods at the 4- digit level), about 521 items were in the 18% List (constituting 43% of the total goods at the 4-digit level) and about 229 items were in the 28% List (constituting 19% of the total goods at the 4-digit level). He further stated that about 81 % of items at 4-digit level would largely be taxed at the rate of 18% or lower and only about 19% of items at the 4-digit level would be taxed at the rate of 28%. He further added that about 60% of the items at the 4-digit level would be covered in the standard rate of 12% and 18% and about 21 % items would b
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
dendum to the detailed agenda notes of Agenda Item 9 circulated before the Council Meeting had been discussed during a meeting with the officers of the Centre and the States held on 17 May, 2017 in Srinagar. He added that based on the suggestions agreed upon during the officers' meeting, rates on certain goods/services were proposed to be modified as compared to what was proposed in the original agenda notes and that a 4-page addendum was circulated suggesting these modified rates during the meeting today (enclosed as Annexure 4 to the Minutes).
15.5. Starting the discussion on this agenda item, the Hon'ble Minister from Kerala made a general point that 70% of the VAT revenue came from goods that attracted the VAT rate of 14.5% and that the same weight ofthe goods should have been there for 28% tax slab under GST but this weight was only 20%. He observed that coverage of goods under the exemption list was understandable as it was meant to keep the Consumer Price lndex (CPI) ba
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r limit on which VAT was levied was different in different States. He further stated that there could be additional revenue collection through better compliance by use of lnformation Technology (IT), e-way bill system, etc. He stated that as the present rate structure was loaded against the revenue neutral rate (RNR), one had to be cautious about lowering the rates on State specific goods. He added that the Council would also need to consider how to operationalise the anti-profiteering provisions of the law in order to ensure that Maximum Retail Price (MRP) was reduced for goods which were required to have the MRP label as otherwise it would lead to windfall gains to the corporates.
15.6. The Hon'ble Minister from Jammu & Kashmir stated that the choice lay between elasticity and buoyancy. He suggested that a study could be done to estimate the gains from buoyancy in taxes. He further stated that the Central Statistical Organisation (CSO) should prepare a new basket for CPI as the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
T rates low and to put a cap of 18% in the Constitution itself He stated that the whole issue of having a band of tax rates arose from this concern and there was an effort to reduce the number of goods falling in the band of 28% rate. He further stated that coverage of goods in the 28% rate band had to take account of the current reality, and some of the goods which were considered luxury earlier, were no longer luxury goods, and therefore, kept at 18%. He further stated that the concern regarding fall in revenue due to lowering of rates were legitimate as every Finance Minister needed to balance his budget. He stated that how much would be gained from buoyancy was a judgment call to be taken. Further, there would be additional buoyancy gains due to increased compliance under income tax. He further stated that the Central Government had to be more watchful about revenue as States were protected for five years due to the provision of compensation at the assured rate of growth of 1
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
other goods due to introduction of GST. The Hon'ble Minister from Goa stated that the anti-profiteering provision of law should be operationalised. The Hon'ble Chairperson stated that it would be useful to highlight those goods on which tax was being reduced under GST and the Council and the Governments could do a media campaign to ensure that the tax reduction was passed on to the consumers.
15.8. The Hon'ble Minister from Uttarakhand stated that the goods that were not taxed under VAT would be taxed under GST. The Hon'ble Chief Minister of Puducherry stated that the concerns of small States should be addressed in the GST as they might not be able to carry out substantial additional revenue mobilisation. He stated that if compensation was paid every two months, it could affect the developmental activities of the smaller States. The Hon'ble Minister from Tamil Nadu stated that he was happy to see that the goods which were at present exempt both by the Centre and t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d be discussed in terms offive criteria
namely, (i) revenue impact; (ii) impact on domestic manufacturing; (c) the existing combined rate of tax; (iv) the relevance ofthe product for consumers; and (v) optical perception of GST. The following goods were mentioned Annexure-wise by the Hon'ble Members for discussion: –
Annexure I (List of goods at nil CST rate):
(i) 'Jari booti': The Hon'ble Minister from Uttarakhand stated that jari booti was presently kept in Annexure II (5% List) and that it should be put in the nil rate category as 67% of jari booti came from the forests of Uttarakhand. The Secretary stated that jari booti was used as herbal medicine, and therefore, it should be taxed. He stated that the Forest Development Corporation would sell jari booti to companies like Dabur which would take input tax credit (ITC) and use it for payment of tax on its final products. The Hon'ble Minister from Uttarakhand stated that there was no VAT onjari booti in his Stat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e under Annexure I attracting Nil rate of GST, while suji, put up in unit container and bearing a registered brand name, to be kept under Annexure II at 5% rate.
(iii) 'Dalia': The Hon'ble Minister from Uttarakhand stated that on the same logic as suji, dalia should also attract nil rate of GST. After discussion, it was agreed that dalia, other than those put up in unit container and bearing a registered brand name, would attract Nil rate of GST and dalia put up in unit container and bearing a registered brand would be taxed at the rate of 5%. This was agreed to by the Council.
(iv) Rusk: The Hon'ble Minister from Uttarakhand stated that it was not taxed under VAT, and therefore, it should be kept at Nil rate. The Secretary stated that rusk was modified bread, and therefore, it was justified to levy tax at the rate of 5%, as proposed. The Council agreed to this suggestion.
(v) 'Seviyan'(Vermicelli): The Hon'ble Minister from Uttarakhand suggested that it should a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
biscuits which were mostly used by the poorer sections of the society should be kept in the exempt List. The Secretary stated that value based rate of taxation led to suppression of value and loss of revenue. He suggested that the rate of tax should not be varied on the basis of value of biscuits. After discussion, the Council agreed to discuss this issue separately when they took up discussion on the rate of tax for biscuits.
(ix) Silk yarn, cotton yarn in hank: The Hon'ble Minister from Assam suggested that silk yarn should be kept in the exempted category. The Hon'ble Minister from Karnataka stated that there would be no revenue implication in exempting silk yarn as silk fabrics would be taxed. The Hon'ble Minister from Uttar Pradesh suggested that cotton yarn in hank should be kept in the exempt category. The Hon'ble Chairperson observed that reducing taxes on a large number of products would adversely affect the revenue and that the Governments needed to strike a bala
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t embroidery or zari articles was used in high value textile clothing, and therefore, it was reasonable to tax it at the rate of 5%. He stated that the burden of this tax would be borne by the buyers of these textile articles and not the persons who produced them. The CEA stated that GST was a consumption tax and its incidence would be borne by the consumers, and therefore, it was important to see who were the consumers of the product. The Council agreed not to change the recommended rate for zari at 5%.
(xii) 'Chikan': The Hon'ble Minister from Uttar Pradesh suggested that chikan should be kept under the exempt category. The Secretary stated that though chikan was a local produce, it was largely used by the rich class and when sari and dhoti were proposed to be taxed at the rate of 5%, it would not go down well with the people to exempt chikan products. The Hon'ble Minister from Bihar stated that too many exemptions would lead to problem of misclassification. The Coun
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ussed separately. The Council agreed to this suggestion.
(xiv) Fish net and fish net fabric: The Hon'ble Minister from Andhra Pradesh stated that these goods were used by fishermen, and therefore, should be kept in the exempt category. The Hon'ble Chief Minister of Puducherry and the Hon'ble Minister from Goa supported this proposal. The Hon'ble Minister from Tamil Nadu stated that India had a long coast line and lakhs of fishermen were dependent on fishing for their livelihood and keeping this in mind, Tamil Nadu had presently exempted fish net from VAT. He stated that as ITC would be available, fish net could be taxed at 5%. The CEA stated that fish net had a lot of embedded tax and putting it in exempt category would mean that it would continue to carry the embedded tax whereas the imported goods would be carrying no embedded tax, .making them cheaper. He further stated that if fish net was charged to Nil rate of GST, no lGST could be charged on imported fish net, w
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Manipur also suggested to exempt bamboo matting. The Hon'ble Minister from Tripura suggested that bamboo and bamboo products should be kept under the exempt category. The Secretary stated that the GST rate for these products falling in Chapter 46 was discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in Sri nagar and it was agreed at the officers' level that rather than putting them under exempt category, they could be taxed at the rate of 12% instead of the earlier recommended rate of 18%. He added that this item was included in the addendum circulated in the Council on 18 May 2017 after the meeting of the officers of the Centre and the States in Sri nagar (Annexure 4 of the Minutes). The Council approved the revised proposed rate.
(xvi) Bamboo floor tiles and bamboo panels: Ms. Brahmneet Kaur, CCT, Tripura, stated that bamboo floor tiles and bamboo panels should also be taxed at Nil rate or at the rate applicable for other bamboo products.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ed that fresh tamarind was already in the exempt category.
(xix) Fertilizers: The Hon'ble Minister from Andhra Pradesh suggested that the fertilizers sold by Primary Agricultural Co-operative Societies should be kept under the exempt category. The Hon'ble Minister from Telangana supported this proposal. The Secretary stated that the raw materials used for making fertilizers were chemicals which were proposed to be taxed at the rate of 18% and exempting
fertilizers would lead to a situation of inverted duty structure leading to large amounts of refund. After discussion, it was agreed to keep fertilizers at the proposed rate of 12%.
(xx) Cotton fabrics, cotton textiles and man-made fabrics: The Hon'ble Minister from Andhra Pradesh suggested that cotton fabrics and man-made fabrics should be kept in the exempt category The Hon'ble Deputy Chief Minister of Delhi suggested that cotton fabrics and cotton textiles should be kept in the exempt category. The Hon'ble Deput
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
industrial product which required processing and processing industry would get input tax credit which could be passed through if the product was taxed at the rate of 5%. He further pointed out that dry fish sold by fishermen would not attract GST because of very low turnover (below Rs. 10 lakh in Special Category States and Rs. 20 lakh in other States). He further stated that as fish would be transported to the North-Eastern States from other States like Andhra Pradesh, there would be tax on supply of transport services which could also be passed through by keeping a low tax of 5%. The Council agreed to this suggestion.
(xxiii) Indigenous hand-made musical instruments: The Hon'ble Minister from Uttar Pradesh suggested that these goods should be kept under the exempt category. The Secretary stated that the GST rate for these products was discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in Srinagar and it was agreed at the officers' level tha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d be exempt. Ms. Smaraki Mahapatra, CCT, West Bengal, suggested that cheaper footwear should be taxed at the rate of 5%. The Hon'ble Chief Minister of Puducherry stated that taxation on footwear should be categorised on the basis of their sale price. the Hon'ble Minister from Kerala observed that chappals other than hawai chappals and straps thereof ere proposed to be kept in the 18% rate slab and he proposed that these should be taxed at the rate of 12% and shoes be taxed at the rate of 28%. The Secretary suggested that the tax rate on footwear products should be discussed separately. The Council agreed to this suggestion.
(xxvi) Sago (sabudana): The Hon'ble Minister from Tamil Nadu suggested that sago should be kept under the exempt category. He stated that Tamil Nadu was a large producer of sago whose input was apioca and it was a food product of the common man. He stated that if it was taxed at 5%, the full urden of tax would fall on the common man and this would affect th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ted that natural honey other than that put up in unit container and bearing a registered brand name might be kept at Nil rate whereas natural honey put up in unit container and bearing a registered brand name might be taxed at 5%. The Council agreed to this suggestion.
(xxviii) Chemical contraceptives: The Hon'ble Deputy Chief Minister of Delhi suggested that chemical contraceptives should be exempted from tax. The Secretary stated that the GST rate for this product was discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in Srinagar and it was agreed at the officers' level that instead of the proposed rate of 5%, it could be kept under the exempt category. He stated that this item was covered in the addendum to the GST rate schedule for goods circulated during the Council meeting on 18 May 2017 (Annexure-4 of the Minutes). The Council agreed to this proposed change.
(xxix) Wheel-chair for physically handicapped persons: The Hon'ble Deputy
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t on primary products and that the input tax for farmers should not go up as this would lead to inflation The Chief Minister of Puducherry supported this proposal. The Hon'ble Minister from Karnataka suggested that these goods could be taxed at the rate of 5%. The Secretary stated that there would be embedded input taxes on these products, and therefore, these should be kept at the rate of 12%. He further added that if there was no headline rate ofGST on this product, no IGST could be charged 011 import of similar products and this would put domestic manufacturers at a disadvantage The Hon'ble Minister from Haryana observed that according to their estimates, embedded taxes on these goods would not be more than 3% and that if the cost of local agricultural implements was increased, this would encourage imports. After further discussion, the Council agreed to discuss this issue again.
(xxxii) Hand tools: The Hon'ble Minister from Rajasthan stated that non-electrically opera
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s and diagnostic kits that were kept at 5% rate, which included life-saving and cancer related drugs while all other drugs were proposed to be taxed at the rate of 12%. He stated that as there was tax on intermediate chemicals, the cancer drug industry would not like the final products to be exempted. As regards the proposal to exempt generic medicines, he stated that it would be very difficult to monitor and distinguish the supply of generic and branded medicines, and therefore, both were kept in the 12% rate slab. The Council agreed to keep the rates of tax on drugs as recommended in the agenda notes.
(xxxiii) Kerosene PDS: The Hon'ble Minister from Maharashtra suggested that PDS kerosene should be kept under the exempt category. After discussion, it was agreed that it should continue to be in the 5% rate category.
(xxxiv) Electricity: The Hon'ble Minister from Punjab stated that electricity also needed to be put under the exempted List. The Hon'ble Minister from Karnat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
om tax.
(xxxvi) Assistive devices for disabled: The Hon'ble Minister from Kerala suggested that such devices should be kept in the exempt category. The Secretary stated that this would lead to embedded taxes in he final product and would be harmful for the domestic industry. The Council agreed not to put the assistive devices in the exempt category.
(xxxvii) Kerosene stove: The Hon'ble Deputy Chief Minister ofGujarat suggested that kerosene stove hould be charged at Nil rate of tax. However, after discussion, Council agreed to keep the tax rate at 12%.
(xxxviii) Areca nut: The Hon'ble Minister from Karnataka stated that fresh areca nut harvested from trees was proposed to be taxed at Nil rate, the dry and processed areca nut was proposed to be taxed at the rate of 12%. He stated that the weighted average of the combined tax incidence today would not be more than 5%. He stated that farmers sold dried areca nut and its rate of tax should not be more than 8% The Hon'ble
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hat resin should be taxed at the rate of 5% instead of the proposed rate of 18% as this was collected by the poorer sections of the society. After discussion, the Council agreed to this suggestion and decided to put :natural gums, resins, etc. in the 5% rate category.
(xl) Tendu leaves: The Hon'ble Minister from Madhya Pradesh suggested that this should be taxed at the rate of 28% and not at 5%. The Secretary suggested that the rate of tax on tendu leaves could be discussed separately along with the rate of tax on bidi. The Council agreed to this suggestion.
(xli) Dried tobacco leaves: The Hon'ble Deputy Chief Minister of Gujarat suggested that the dried tobacco leaves should be kept in the category of exempt goods instead of at the rate of 5%. After discussion, the Council agreed to levy 5% GST on tobacco leaves under reverse charge.
(xlii) Rubber tyres: The Hon'ble Minister from Kerala suggested that the rate of tax on rubber tyres should be increased from 5% to 12%. T
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
be possible to verify this aspect at all stages and this would create disputes at the field level. The Council agreed not to have a separate rate of tax for semi-mechanised safety matches.
(xliv) 'Namkeen' including 'Khakhra': The Hon'ble Minister from Rajasthan stated that namkeen (bhujia) should not be taxed at the rate of 18% and that it should be kept in the 5% category, particularly when 'rasagulla' was to be taxed at the rate of 5%. He added that namkeens sold by multi-national companies could be taxed at a higher rate. The Hon'ble Deputy Chief Minister of Gujarat suggested that the Gujarati namkeen, khakhra, should be kept under the exempt category as it was consumed by common people. The Secretary stated that khakhra was taxable at the same rate as other namkeen which was proposed to be taxed at the rate of 18%. The Hon'ble Chairperson stated that the packed namkeen was sold by big brand owners and they should be taxed whereas the smaller su
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ble Minister from Meghalaya and the Deputy Chief Minister of Gujarat stated that any increase in the rate of tax on clay bricks would adversely affect the Pradhan Mantri Awas Yojana Scheme. The Council agreed to keep the tax rate of clay bricks at 5%.
(xlvi) Fly ash bricks: The Hon'ble Minister from Bihar suggested that fly ash bricks should be taxed at the rate of 5% as encouraging use of such bricks would help save land in thermal power plants. The Secretary stated that the GST rate for this product was discussed during the meeting of officers of the Centre and the States on 17 May, 2017 in Srinagar and it was agreed at the officers' level that instead of the proposed rate of 18%, it could be taxed at the rate of 12%. He stated that this item was covered in the addendum to the GST rate schedule for goods circulated during the Counci I meeting on 18 May 2017 (Annexure-4 of the Minutes). The Council agreed to this proposed change.
(xlvii) Coal: The Hon'ble Minister from U
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ively for generation of power. The Hon'ble Chairperson stated that this would pose challenge for levying the tax. After discussion, the Council agreed not to have a separate classification for coal used captively for generation of power.
Annexure III (List of goods at 12% CST rate):
(xlviii) Plywood and particle board: The Hon'ble Minister from Chhattisgarh stated that plywood and particle board should be kept in the 12% List instead of the presently proposed tax rate of 28%. The Hon'ble Deputy Chief Minister of Del hi stated that if one wanted to prevent wood to be cut, then boards based on bagasse and fibre should be encouraged. The Secretary explained that only specified boards including bagasse based boards and boards made from agricultural residue were proposed to be taxed at the rate of 12% but other wood based boards and plywood were proposed to be taxed at the rate of 28%. He added that all building materials were proposed to be taxed at the rate of 28%. The Hon&#
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e trees and to use the planks directly. The Hon'ble Minister from Kerala suggested that wood based particle board should be taxed at a lower rate. The Hon'ble Minister from Haryana stated that most of the units in the ply board sector fell under micro and small enterprises with a turnover of less than Rs. 4 crore and were exempt from Central Excise duty upto the turnover of Rs. 1.5 crore. Therefore, the incidence of Central Excise duty at the rate of 12.5% was not applicable on them and as such, taxing them at the rate of 28% was not justifiable and that GSTon ply board at the rate of 18% would be more appropriate. The Hon'ble Chairperson stated that tax on these goods was not being imposed for the first time and if the existing combined tax rate was about 30%, it would be reasonable to keep it at 28% but not at 18%. He added that ifsuch a steep reduction was made on one item, the Members should also suggest an item on which GST rate could be increased correspondingly. Afte
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Hon'ble Minister from Kerala suggested that mobile phone should be taxed at the rate of 18%. The Secretary stated that the present combined incidence of tax on mobile phone was around 14% and therefore, it was put in the rate slab of 12%. He stated that this product was also very important for the Digital India Programme. The Hon'ble Deputy Chief Minister of Delhi stated that there was already a large grey market for mobile phones, and therefore, tax on it should not be too high. The Hon'ble Chairperson observed that this product was now being substantially manufactured in India. The Council agreed to keep the rate of tax on mobile phone at 12%.
(Ii) Coconut water: The Hon'ble Chief Minister of Puducherry stated that tender coconut water should not be taxed at the rate of 12%. Shri Alok Shukla, Joint Secretary (TRU-I), CBEC, clarified that only packaged tender coconut water was proposed to be taxed at the rate of 12%. The Secretary suggested that tender coconut water
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
uncil approved the rate of 5% as proposed in the agenda notes.
Annexure IV (List of goods at 18% GST rate):
(Iv) Fruit, nuts and other edible parts of plants, otherwise prepared or preserved: The Hon'ble Deputy Chief Minister of Delhi stated that this entry appearing at Sl.No.8 of Annexure IV attracting a tax rate of 18% had an overlapping entry at Sl.No.4 at Annexure II attracting a rate of 5% (edible fruit and nuts, in frozen state or preserved) and that this could lead to evasion of tax. He suggested to rectify it by deleting the word 'preserved' from the entry at Sl.No.4 at Annexure II. The Joint Secretary (TRUI), CBEC, explained that entry at Sl.No.8 of Annexure IV referred to fruits, nuts and other edible parts of plants, prepared or preserved, by vinegar or acetic acid which fell under Chapter 20 whereas the entry at Sl.No.4 of Annexure II referred to fruits and nuts provisionally preserved (for example, by sulphur dioxide gas or in brine) which fell under Chapter
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Helmet: The Hon'ble Chief Minister of Puducherry suggested that the rate of tax for helmet should be reduced to 5% as it was very important for road safety. The Secretary stated that as per the combined incidence of tax, this product should be in the 28% rate slab, but as the inputs for this product would be taxed at the rate of 18%, the rate of tax on helmet was already proposed to be kept at 18%. The Council agreed to keep the rate of tax for helmet at 18%.
(lx) Information Technology (IT) products: The Hon'ble Minister from Karnataka stated that IT products were facing global competition and NASSCOM had suggested that the IT industry would be better off it IT products in India were classified as per the ITA-I (Information Technology Agreement-I) of the WTO. The Joint Secretary (TRU-I), CBEC, stated that the basis of classification of IT products under ITA-I and GST was the same, namely, the HSN and 217 items spread over HSN Chapters 38 to 90 were covered under the ITA-I ag
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e Hon'ble Minister from Karnataka stated that it was a national aspiration to use recycled products. The Hon'ble Minister from Kerala stated that instead of tax exemption, subsidies could be given to encourage the use of recycled products. The Council agreed not to have a rate differential for recycled products.
(lxii) Sanitary napkins and tampons: The Hon'ble Minister from Kerala suggested that the rate of tax on these products should be reduced to 12%. The Secretary stated that these goods had already been moved to the List of goods under 12% rate slab. The Council agreed to this rate.
(lxiii) Arms and ammunition: The Hon'ble Minister from Kerala stated that the rate on arms and ammunition should be kept in the square bracket. After discussion, the Council agreed to the rate as proposed in the agenda notes (i.e. 18% in Chapter 93).
(Ixiv) Packed and branded cereals: The Hon'ble Minister from Kerala observed that many goods proposed to be exempted from tax were
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
be subject to tax. The Hon'ble Minister from Punjab also supported the suggestion to levy tax on packed and branded cereals. The Hon'ble Deputy Chief Minister of Delhi stated that even retailers in small shops packed cereals in packages of 1 kg and 2 kg and these should not get taxed. The Hon'ble Minister from Kerala stated that the term 'branded' meant use of a trade mark. The Hon'ble Minister from Jharkhand stated that all branded food should be taxed, as products like branded atta were sold at a high price. The Hon'ble Minister from Maharashtra stated that almost every district had a brand as for instance, there was a brand of Mahakali alta sold by ladies. The CCT, West Bengal, did not support the proposal to tax packed and branded food items. The Hon'ble Minister from Haryana stated that the activity of branding should not be penalised by way of a tax. The Hon'ble Minister from Karnataka stated that the primary grains were also being mostly sold
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
le Deputy Chief Minister of Delhi stated that more and more consumers were moving towards buying packed and branded cereals. The Hon'ble Minister from Haryana suggested that decision on this issue could be postponed to a later date. The Council agreed to this suggestion.
(Ixv) X-ray plates and films: The Hon'ble Deputy Chief Minister of Gujarat suggested that the rate of tax on x-ray plates and films for medical use should be reduced from 18% to 12% as bulk of these goods were used by Government hospitals. After discussion, the Council agreed to reduce the rate of tax on x-ray plates and films for medical use to 12% while retaining the proposed rate of 18% for x-ray films for other use.
(Ixvi) Stent for heart surgery: The Hon'ble Deputy Chief Minister of Gujarat suggested that stent for heart surgery should be taxed at the rate of 5%. The Secretary clarified that coronary stent falling under Chapter 90 was already proposed to be taxed at the rate of 5%. The Council approv
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Joint Secretary (TRU-I), CBEC, stated that all cars were proposed to be taxed at the rate of 28% but the rate of compensation cess was proposed to be low for smaller cars. The Council agreed to this suggestion.
(Ixx) Cement: The Hon'ble Deputy Chief Minister of Delhi stated that as real estate was kept out of GST, to help this sector, the rate of cement should be in the 18% rate slab. The Joint Secretary (TRU-1), CBEC, stated that the existing Excise Duty on cement was 12.5% plus a component of specific rate and VAT at standard rate. Therefore, the rate of tax on cement under GST would be lower than the present combined tax incidence. The Council agreed to keep the rate of tax on cement at 28%.
(Ixxi) Paint: The Hon'ble Deputy Chief Minister of Delhi stated that as real estate was kept out of GST, to help this sector, the rate of paint should be in the 18% rate slab. After discussion, the Council agreed that it should be taxed at the rate of 28%, in line with the present inc
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
He further stated that this sector gave large scale employment to people. The Hon'ble Chairperson observed that marble and granite was largely used by rich people. The Hon'ble Minister from Rajasthan stated that there were different grades of marble from high to the low end and it was used by all sections of the society. After discussion, the Council agreed to keep the rate of tax on marble and granite slabs at 28%.
(lxxiv) Motorcycles: The Hon'ble Chief Minister of Puducherry stated that motorcycles were used by poorer and mid-income sections of the society, and therefore, they should be taxed at a lower rate. The Secretary stated that the combined rate of taxation on motorcycles was approximately 31%, and therefore, it was proposed to be taxed at the rate of 28%. The Council agreed to keep the rate of tax on motorcycles at 28%.
(lxxv) Hybrid and Electrically operated cars: The Hon'ble Minister from Karnataka stated that the rate of tax on these cars should be lower
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ty Chief Minister of Gujarat suggested that intra-ocular lens should be kept in lower tax slab.
Rates of GST ComDensation Cess:
16.1. The proposed rate of Compensation Cess for different supplies of goods as contained in Annexure XI of Volume-3 of the detailed agenda notes was taken up for discussion. Introducing this subject, the Secretary stated that the rate of Cess on the varieties of cigarettes and other tobacco products was proposed on the lines of the present Central Excise tariff structure on these products and that the proposed multiple rates on cigarettes was proposed to maintain the existing tax rates.
16.2. Regarding the proposal to charge cess on motor vehicles, the Secretary stated that the present combined incidence of tax on small cars was around 28% and in order to protect revenue, it was proposed to impose a cess of 1% on small petrol cars and 3% on small diesel cars. He suggested that he proposed cess of 1% and 3% on small petrol and diesel hybrid motor vehicles r
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
from Haryana stated that some manufacturers might maintain the length of car applicable for lower rate of tax but sell it at a high value and that this would lead to loss of revenue. The Secretary stated that it was not advisable to change the criteria of taxation at this stage and suggested to adopt the criteria as used for excise classification and as recommended by the Fitment Committee. The Council agreed to this proposal.
16.3. The CEA suggested that the rate structure for cess could be rationalised by using certain objective criteria. The Secretary stated that rationalisation could be done at a later date as at this stage, the existing rates of taxes needed to be maintained.
16.4. The Secretary drew attention to page 114 of Volume-3 of the detailed agenda notes where Fitment Committee had recommended to impose cess on high-end motor bikes, say of engine capacity above 500 cc, aircrafts for personal use and yachts. As regards cess on aircrafts for personal use and yachts, the Se
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
oms dated 29.3.1958). He suggested that in today's time, such an exemption was not desirable. The Hon'ble Minister from Bihar stated that the IGST exemption for the Vice President of India should be continued. The Hon'ble Deputy Chief Minister of Delhi stated that his UT had no objection to continuing with this exemption. The Council approved this exemption as well as the other proposed exemptions/concessions from IGST.
18. For agenda item 9, the Council approved the rates of GST on supply of goods, Compensation cess and exemptions from IGST as presented in Volume-3 of the detailed agenda notes and the Addendum thereto and another Addendum attached as Annexure-4 to the Minutes with the following modifications: –
GST Rate on Goods
(i) Suji: Other than put up in unit container and bearing a registered brand name, to be charged to Nil rate of tax instead of the proposed 5% and suji put up in unit container and bearing a registered brand name to be charged at the rate of 5%;
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ntire textile chain;
(xi) 'Puja samagri': Fitment Committee to first define the term 'puja samagri' and then to exempt it;
(xii) Footwear: Council to discuss separately the tax rate on footwear;
(xiii) Sale by CSD Canteen: Council to discuss it separately;
(xiv) Power driven agricultural implements: Council to discuss it again;
(xv) Electricity: Council to examine this issue further and put it in exempt list, if required;
(xvi) Coffee beans, not roasted: To be charged to Nil rate of tax;
(xvii) Areca nut: Dried areca nuts, whether or not shelled or peeled, to be taxed at the rate of 5%;
(xviii) Natural Resin: to be charged to 5% of tax instead of the proposed rate of 18%;
(xix) Tendu Leaves and Bidi: Council to discuss separately the tax rate on biri and tendu leaves;
(xx) Dried tobacco leaves: to levy 5% GST on tobacco leaves under reverse charge;
(xxi) 'Namkeen' including 'khakhra': to be charged to 12% of tax instead of the proposed 18%;
(
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
oncessions in Annexure XII of Volume-3 of the detailed agenda notes approved.
Discussion on rates for Services
19. The Secretary introduced the proposed rates of tax and exemptions for services as contained in Annexure VI to X of Volume-3 of the detailed agenda notes and the Addendum thereto. He stated that after discussion during the meeting of officers of the Centre and the States held on 17 May, 2017 in Srinagar, it was agreed to add a few more services to be exempt under GST as they were exempted under the existing Service Tax regime and was circulated to the Council on 18 May, 2017 (Annexure-4 of the Minutes). The Council; thereafter, took up for consideration the various Annexures VI to X and Annexures XIII and XIV relating to services contained in the detailed Agenda Notes for agenda item 9.
Annexure VI (List A-l):
19.1. The Secretary stated that in List A-I of Annexure VI, it was proposed to continue with 54 exemptions under GST that were available under the Service Tax. He
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ed under the authority of the Constitution, no GST should be payable on collection of such fee. He pointed out that Government provided security to high dignitaries as part of its sovereign function and that since services provided by an employer to his employee were taxable for a value above Rs. 50,000, security services would be liable to GST. The Additional Chief Secretary, Haryana, stated that in his State also, there was a fee for giving liquor licence and no GST should be levied on that for the reasons as explained by Punjab and also on the ground that as alcohol for human consumption was not covered under GST, the activities connected to it should also not be charged to GST. The Hon'ble Ministers from Himachal Pradesh, Meghalaya, Rajasthan and Telangana also supported the view that no GST should be charged on the licence fee for giving liquor licence for human consumption. Shri Amitabh Kumar, Joint Secretary (TRU-II), CBEC, stated that there was no GST for services given by an e
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ery weak justification for charging tax from telecom operators on spectrum fees. The Hon'ble Minister from Bihar stated that tax on liquor fee should not be exempted as this tax would now be shared with the Central Government. The Hon'ble Chairperson stated that 42% of this collection would also be shared with the States.
19.3. The Hon'ble Minister from Jammu & Kashmir raised an issue as to what was the broad policy objective for charging tax on Government services. The Secretary stated that tax was charged on big items like giving right-of-way for laying pipeline or sale of spectrum. The Advisor (GST), Punjab, stated that a distinction should be made between the Constitutional power to levy a tax (like entry 51 and 56 of List II of Schedule 7 of the Constitution) and other taxes. The Hon'ble Deputy Chief Minister of Gujarat supported the levy of tax on the fee for giving liquor licence as this would be distributed to all the States. The Hon'ble Minister from Assam st
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d that in his State, the fee for liquor licence was collected on quarterly basis. The Hon'ble Deputy Chief Minister of Delhi also stated that the arrangement of charging higher tax on liquor would lead to problems. The Hon'ble Minister from Telangana stated that in his State liquor fee was collected by a Corporation and services given by the Corporation could be exempt. The Hon'ble Chairperson stated that from the taxation policy point of view, the price effect on dealers or consumers of alcohol was not a primary policy objective. The Hon'ble Deputy Chief Minister of Delhi stated that the main problem was lack of set off of ITC under State Excise. The Hon'ble Minister from Punjab stated that liquor fee was a de facto tax and there should be no tax on tax. The Secretary stated that grant of a licence was a service given by the Government and this could not be exempted. The Hon'ble Chairperson stated that the only way to address this issue was to change the taxati
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e fee for liquor in the GST regime also and not to exempt it.
19.5. The Hon'ble Minister from Madhya Pradesh stated that an exemption should also be given for services provided for religious pilgrimage such as Kailash Mansarovar Yatra. The Secretary clarified that it was already exempt. Shri R.K. Tiwari, Additional Chief Secretary, Uttar Pradesh, suggested that services given by State bodies like State Co-operative Banks should also be exempted from tax. The Secretary stated that in the Addendum to the agenda notes for Agenda Item 9 circulated on 18 May, 2017, there was an entry to exempt services by way of collection of contribution under any scheme of the State Governments and under this, the States could list out their specific schemes for exemption from GST which could be brought before the Council.
Annexure VI (List A-2):
20.1. The Secretary explained that List A-2 of Annexure VI contained proposals to continue Service Tax exemptions in GST with modifications as recommende
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s had argued that their revenue would be adversely affected if the room rent limit for exemption was kept high. The Hon'ble Minister from Goa suggested to keep the exemption limit for room rent at Rs. 500 per day as this figure was arrived at after consideration in the Fitment Committee.
20.2. The Hon'ble Chief Minister of Puducherry stated that his Union Territory was a tourist destination where houses were being converted as hotels and there was increasing inflow of tourists. He, therefore, suggested to keep the exemption limit for room rent at Rs. 1,000 per day. The Hon'ble Ministers from Uttarakhand and Telangana also supported this proposal. The Hon'ble Ministers from Uttar Pradesh, Himachal Pradesh, Jharkhand and Bihar supported the exemption limit for room rent at Rs. 500 per day. The Hon'ble Minister from Rajasthan stated that the tourism industry and the hotel industry needed to be treated differently and suggested the exemption limit of room rent to be Rs
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ted that if States wanted to promote a particular film, they could give reimbursement of SGST portion of the tax. The Hon'ble Deputy Chief Minister of Delhi stated that theatre and cultural activity was a different dimension of society and could not be treated the same as consumption of alcohol in a restaurant. He observed that in a place like Mandi House, which had a seating capacity of 200, even 50 tickets were sold with difficulty, and therefore, it needed to be encouraged. The Hon'ble Chairperson stated that though Delhi had world-class stadia, it had very few big events. The Hon'ble Deputy Chief Minister of Delhi responded that Delhi might not have many big events, it had several small events and charitable programmes. The Secretary stated that smaller theatre groups would enjoy exemption up to the turnover ofRs. 20 lakh. The Hon'ble Minister from Goa also agreed with the proposed rates.
20.4. The Hon'ble Minister from Punjab stated that exemption at SI.No.7 t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n to particular activities could not be justified. The Hon'ble Deputy Chief Minister of Gujarat suggested that tax on job charges could be kept at a lower rate. The Secretary stated that tax on the job charges would be paid by the principal manufacturer and he would be eligible to take ITC on the same.
Annexure VI (List A-3);
21. The Secretary stated that List A-3 of Annexure VI contained proposals to withdraw in GST certain exemptions extended under Service Tax. He further stated that this List should be read along with Addendum circulated on 18 May, 2017 after the meeting of officers of the Centre and the States (Annexure 4 of the Minutes) in which some exemptions were proposed to be restored and it was also provided that services by way of collection of contribution under any scheme of the State Governments could also be included in the exemption list after consideration by the Council. The Council approved List A – 3 of Annexure VI along with the Addendum circulated on 18 May
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
newsprint manufactured in India. He further stated that 50% of advertisement came from businesses and they would get credit for this tax. He added that 6 major news group had proposed that a tax of 5% should be imposed on selling of space for advertisements in print media if GST was levied on newsprint. He stated that if tax was exempted, then, the major newspapers would suffer a disadvantage due to embedded taxes. The Principal Secretary (Finance), Chhattisgarh, stated that they had also received representations to levy 5% tax on supply of newspapers. The Secretary stated that this tax should not be levied as burden would fall on the consumers, who would not be eligible for ITC. The Hon'ble Minister from Bihar stated that the print media deserved to be congratulated for coming forward with a suggestion to levy tax in their sector. The Hon'ble Chairperson stated that the taxation on media was different from taxation on business and there were court judgments to the effect that
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
g health care services where room charges were Rs. 2,000 or more per day. The Joint Secretary (TRU-II), CBEC, stated that the tax would be charged at the rate of 18% in view of entry at SI.No.6 of Annexure IX. The Hon'ble Minister from Kamataka stated that presently they charged luxury tax at the rate of 18% for such hospital rooms. The Hon'ble Minister from Telangana stated that they charged tax for such hospital rooms at the rate of 10%. The Joint Secretary (TRU-II), CBEC, stated that such luxury tax was also being charged in Kerala and a few other States. The Hon'ble Deputy Chief Minister of Del hi stated that patients did not go to hospital for luxury but for treatment and no tax should be levied for their stay in hospital. The Hon'ble Chairperson stated that taxation in education and health sectors should be avoided and even if some States were charging luxury tax for hospital rooms, rate of 18% appeared excessive. The Secretary stated that the rate could be
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
xcept passengers travelling in sleeper class) at the rate of 5% as there was no GST on petroleum products. The Hon'ble Minister from Uttarakhand stated that in respect of transport of passengers by air-conditioned contract or stage carriage, no benefit of tax would now accrue to the States as it was a destination based tax. The Secretary stated that this would be governed by the provisions of place of supply under the IGST Act. The Hon'ble Minister from Karnataka stated that a flat composition rate of 5% on transportation by road was a retrograde step as this would encourage grey market operations whereas the general effort under the GST was to bring all businesses into the tax net. He stated that in order to encourage transparency of business of transport, which was bedrock of economic development, it was important that the tax administration should be able to ascertain as to how much fuel etc. was consumed by the transporter. He stated that this scheme ould encourage under re
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ld be allowed on the same. The Hon'ble Chairperson observed that the officers had calculated the set-off on account of petrol/diesel and earlier the tax on transport sector came to 4.5%, which was now being made 5%. The Secretary stated that increasing the rate of tax at a level much higher than the present rate would be disruptive for the economy and suggested to continue with the proposed rate. The Council agreed to the proposal and approved the proposal to levy 5% GST on all services covered under Annexure VII.
Annexure VIII:
24.1. The Secretary stated that Annexure VIII contained the services which were proposed to be taxed at the rate of 12%. He explained the scheme of taxation for restaurants and stated that a composition rate of 5% was available for restaurants with turnover between Rs. 20 lakh and Rs. 50 lakh and airconditioned or non-air-conditioned restaurants would attract a tax rate of 12% with full ITC and restaurants with liquor licence (whether or not air-condition
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Minister from Rajasthan suggested to keep the rate of tax for restaurants at 12% irrespective of the fact whether or not it had a liquor licence. The Hon'ble Minister from Meghalaya stated that all non-air-conditioned restaurants should be taxed at the rate of 5%. The Secretary stated that the present weighted average of only VAT incidence on restaurants was about 12% and if it was reduced to 5%, it would lead to a big loss of revenue. The Hon'ble Deputy Chief Minister of Puducherry suggested to keep different rates of tax for air-conditioned and non-airconditioned restaurants. After further discussion, the Council agreed that restaurants having facility of air-conditioning or central heating at any time during the year (whether serving liquor or not) would be levied to tax at the rate of 18%, restaurants serving liquor-would be taxed at the rate of 18% and restaurants not having facility of air-conditioning or central heating at any time during the year and not having licence to s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t presently the approximate combined incidence of tax was around 9% -10% but the headline rate of tax would now become 12% with the benefit of II'C. He added that the overflow of input tax credit in this sector would not be refunded. He state~ that building materials would be mostly in the rate slab of 12% and due to benefit of lTC, the prices of flats should become cheaper. He stated that consumer education would be required on this subject.
24.3. The Hon'ble Minister from Telangana stated that two different schemes of taxation in construction sector could lead to confusion and suggested that sale of finished flats should also get ITC as otherwise there was a risk of builder selling finished flats as flats under construction. The Hon'ble Deputy Chief Minister ofGujarat stated that this possibility had become remote after the enactment of the Real Estate (Development and Regulation) Act (RERA). The Hon'ble Minister from Maharashtra stated that abatement regarding value ofl
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r and the developer came into existence:
Sr. No.
Stage during which the developer enters into a contract with the purchaser.
Rate of Abatement
a)
Before issue of the Commencement-Certificate.
NIL
b)
From the Commencement Certificate to the completion of plinth level.
5%
c)
After the completion of plinth level to the completion of 100% of RCC framework
15%
d)
After the completion of 100% RCC framework to the Occupancy Certificate.
45%
e)
After the Occupancy Certificate
100%
He added that for determining the value of supply of services as per the above Table, it shall be necessary for the dealer to furnish a certificate from the Competent Authority. This would make the levy compliant with Law laid down by Hon'ble Courts and such deduction would avoid hardship to people in Maharashtra (mainly MMRDA region). He further proposed exemption from levy of Maharashtra SGST on ongoing construction of complex, building etc. services, where lump sum amount was already paid on
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
lue, this would lead to exercise of discretion and could affect revenue. After discussion, the Council agreed to the proposal on the rate of tax on construction service proposed in Annexure VIII and also the other taxation proposals in Annexure VIII.
Annexure IX:
25. The Secretary explained that this Annexure contained services which were proposed to be taxed at the rate of 18%. He stated that some of the items covered under this Annexure such as renting of hotels and supply of food/drinks in air-conditioned restaurants had already been discussed earlier while discussing the services covered under Annexure VI (List A-2) and Annexure VIII respectively. He proposed that subject to these modifications, the rate of services proposed under Annexure IX might be approved. He added that any other service not covered in 5%, 12% or 28% Schedule would fall in this slab. The Council agreed to the proposal.
Annexure X:
26.1. The Secretary explained that this Annexure contained those services wh
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
f the ticket rate on circus and theatrical performance was less than Rs. 250, then the tax would be exempt. The Hon'ble Chief Minister of Puducherry stated that tax on admission to cinema should be kept at the lower slab of 18%. The Hon'ble Minister from Telangana suggested that the rate for entry into multiplex cinema hall could be kept at 28% and for entry into other cinema hall could be kept at the rate of 18%. The Hon'ble Chairperson stated that tax at the rate of about 28% was already being paid on entry into cinema halls. He suggested that services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance and drama could be charged to GST at the rate of 18% and the rest of the entries under SI.No.l of Annexure X could be taxed at the rate of28%. The Council agreed to this proposal.
26.2. The Hon'ble Minister from Assam raised an issue as to at what rate tax on dish TV, cable TV etc. would be charged. The Secretar
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
that all Members had to run Governments. The Hon'ble Minister from Jammu & Kashmir cautioned that the architecture of GST should not be impaired by making various carve outs and one should avoid going towards the system of modified VAT. After further discussion, the Council agreed that hotels with room tariff ofRs. 1,000 and above but less than Rs. 2,500 per room per day would attract the rate of 12% with full ITC and hotels with room tariff of Rs. 2,500 and above but less than Rs. 5,000 per room per day would attract the rate of 18% with full ITC.
26.3. The Hon'ble Minister from Karnataka stated that a high tax of 28% on horse racing. would lead to evasion of tax. However, the Council agreed to keep the tax rate at 28%.
26.4. After further discussion, the Council approved the entries under Annexure X with the following amendment: –
(i) services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance and drama to be taxed
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ate for a good at 6 or 8-digit levels. He proposed that for GST purposes, the classification of goods and the Rules for Interpretation thereof as given in the First Schedule to the icustoms Tariff Act, 1975 be relied upon. The Council agreed to this proposal.
29.2. The Secretary drew attention to an Addendum to Agenda Notes circulated by the GST Council Secretariat on 16 May, 2017 wherein it was mentioned that a new Chapter 99 was proposed to be added to the First Schedule to the Customs Tariff Act, 1975 which would provide 6-digit classification of services based on the United Nations Central Product Classification (UN CPC). He stated that the 5- digit classification of UN CPC (excluding '99') had been adapted to meet the Indian requirements. He informed that a Committee of officers in CBEC was constituted to recommend a scheme of classification of services for GST. The Committee had proposed a scheme of classification based on National Product Classification for Services Sec
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of taxable services which were covered in the positive list regime. The new GST system would enable collection of data at a more disaggregated level vis-à-vis the present system of clubbing all services under 120 odd accounting heads. He proposed that the Council might accept this classification of services for GST. The Council approved the proposal.
30. For agenda item 9, the Council approved the proposals related to supply of services as presented in Volume-3 of the detailed agenda notes and the Addendum thereto and another Addendum attached as Annexure-4 to the Minutes along with the modifications, where relevant, as listed below:
(i) Annexure VI (List A-1): The Council approved the proposal of the Fitment Committee to continue under GST, the 54 existing listed exemptions under the service tax, and to also exempt the services provided by the GSTN to the Central of State Governments/Union Territories for implementation of GST;
(ii) Annexure VI (List A-2): The Council appro
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e VII: The Council approved the proposal to levy tax at the rate of 5% on the 11 listed services;
(vi) Annexure VIII: The Council approved the proposal to levy tax at the rate of 12% on the 7 listed services with the following modifications:
(a) restaurants having facility of air-conditioning or central heating at any time during the year (whether serving liquor or not) to be levied to tax at the rate of 18% and restaurants not having facility of air-conditioning or central heating at any time during the year and not having license to serve liquor to be taxed at the rate of 12%, , restaurants not having facility of air-conditioning or central heating at any time during the year and having license to serve liquor to be taxed at the rate of 18%;
(vii) Annexure IX: The Council approved the proposal to levy tax at the rate of 18% on the 6 listed services subject to the modification of rates in respect of renting of hotels and supply of food/drinks in air-conditioned restaurants recorde
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ge;
(xii) Schedules for classification of Goods and Services: The Council approved the proposal to adopt the First Schedule to the Customs Tariff Act, 1975 and the Rules for Interpretation thereof for classification of Goods under GST and addition of a new Chapter 99 to the First Schedule to the Customs Tariff Act, 1975 providing for a 6-digit classification of Services based on the United Nations Central Product Classification (UN CPC).
Agenda Item 10: Any other agenda item with the permission of the Chairperson:
31. The Hon'ble Minister from Jammu & Kashmir stated that the Council needed to deliberate on the tax treatment in respect of trade across the Line of Control (LOC) in his State. The Secretary stated that broadly the existing regime could be continued but this could be examined and discussed further. The Hon'ble Minister from Tamil Nadu circulated a written speech which was taken on record.
Agenda Item 11: Date of the next meeting of the GST Council:
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
meeting ended with a vote of thanks to the Chair.
(Arun Jaitley)
Chairperson GST Council
=============
Document 1
MINUTE BOOK
Annexure-1
List of Ministers who attended the 14th GST Council Meeting on 18-19 May 2017
S No
State/Centre
Name of the Minister
Charge
Govt. of India
Shri Arun Jaitley
Finance Minister
2
Govt. of India
Shri Santosh Kumar
Gangwar
3
Puducherry
Shri V. Narayanasamy
Minister of State (Finance)
Chief Minister
4
Delhi
Shri Manish Sisodia
Deputy Chief Minister
Arunachal
5
Pradesh
Shri Chowna Mein
Deputy Chief Minister
6
Gujarat
Shri Nitinbhai Patel
Deputy Chief Minister
7
Manipur
Shri Y. Joykumar Singh
Deputy Chief Minister
Shri Yanamala
8
Andhra Pradesh
Ramakrishnudu
Finance Minister
9
Assam
Dr. Himanta Biswa Sarma
Finance Minister
10-
Bihar
Shri Bijendra Prasad Yadav Finance Minister
11
Chhattisgarh
Shri Amar Agrawal
Minister, Commercial Taxes
12
Goa
Shri Mauvin Godinho
Minister for Panchayat
13
Haryana
Cap
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
MINUTE BOOK
Annexure-2
List of Officials who attended the 14th GST Council Meeting on 18-19 May 2017
Name of the Officer
Shri Mahender Singh
Shri R.K. Mahajan
Shri P.K. Jain
S No
State/Centre
1 Govt. of India
Dr. Hasmukh Adhia
2 Govt. of India
3 Govt. of India
Ms. Vanaja N. Sarna
Dr. Arvind Subramanian
4 Govt. of India
5 Govt. of India
6 Govt. of India
7 Govt. of India
8 Govt. of India
9 Govt. of India
10 Govt. of India
11 Govt. of India
12 Govt. of India
13 Govt. of India
14 Govt. of India
Shri B.N. Sharma
Shri P.K. Mohanty
Shri Alok Shukla
Ms. Hemambika R. Priya
Shri Simanchala Dash
Shri B.B. Mohapatra
Shri Upender Gupta
Shri Udai Singh Kumawat
Shri Amitabh Kumar
Shri G.D. Lohani
Shri D.S.Malik
Shri Hemant Jain
Charge
Revenue Secretary
Chairman, CBEC
Chief Economic Adviser
Member (GST), CBEC
Member (Budget), CBEC
Chief Commissioner, (AR), CESTAT,
CBEC
Additional Secretary, Dept. of Revenue
Advisor (GST), CBEC
Joint Secretary (TRU), Dept
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Assistant Commissioner, GST Policy
Additional Secretary
Commissioner
Joint Commissioner
Assistant Commissioner
Superintendent
Inspector
Chairman
30 GST Council
31 GST Council
32 GSTN
33 GSTN
Shri Prakash Kumar
CEO
34
Andhra
Pradesh
Shri J. Syamala Rao
Commissioner, Commercial Taxes
Andhra
Additional Commissioner,
35
Shri T. Ramesh Babu
Pradesh
Arunachal
36
Shri Marnya Ete
Commercial Taxes
Commissioner, Commercial Taxes
Pradesh
Arunachal
37
Shri Tapas Dutta
Assistant Commissioner
Pradesh
38 Assam
Shri Anurag Goel
Commissioner, Commercial Taxes
39 Bihar
Ms. Sujata Chaturvedi
Commissioner, Commercial Taxes
40 Bihar
Shri Arun Kumar Mishra
Additional Secretary, Commercial
Taxes
41 Chhattisgarh
Shri Amitabh Jain
42 Chhattisgarh
Ms. Sangeetha P
43 Delhi
Shri S. N. Sahai
Principal Secretary (Finance)
Commissioner, Commercial Taxes
Principal Secretary, Finance
Page 51 of 65
CHAIRMAN'S
INITIALS
MINUTE BOOK
S No
State/Centre
44 Delhi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
63
Madhya
Pradesh
Madhya
64
Shri Sudip Gupta
Pradesh
Dr. Shamim Ahmed Wani
Shri P.K. Bhat
Shri Sanjay Kumar Prasad
Dr. Rajan Khobragade
Shri Raghwendra Kumar
Singh
Commissioner, Commercial Taxes
Additional Commissioner,
Commercial Taxes
Additional Commissioner,
Commercial Taxes
Additional Commissioner,
Commercial Taxes
Joint Commissioner, Commercial
Taxes
Asst. Commissioner, Commercial
Taxes
Joint Commissioner, Commercial
Taxes
Commissioner, Commercial Taxes
Commissioner, Commercial Taxes
Deputy Commissioner, Commercial
Taxes
CHAIRMAN'S
INITIALS
Page 52 of 65
WRITEAWAY)
MINUTE BOOK
Charge
Joint Commissioner
Shri R.K. Khurkishor Singh Assistant Commissioner
S No State/Centre
Name of the Officer
65 Maharashtra
Shri Dhananjay Akhade
66 Manipur
67 Meghalaya
Shri Leonardo Khongsit
68 Nagaland
Shri Y. Mhathung Murry
69 Nagaland
Shri Wochamo Udyuo
70 Odisha
Shri Ashok Meena
71 Odisha
Shri Sahadev Sahu
72 Puducherry
Dr. V. Candavelou
73
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
umar
Shri Kaashi Vishweshwar
Rao
Commissioner, Commercial Taxes
Deputy Commissioner, Commercial
Taxes
Commissioner, Commercial Taxes
Page 53 of 65
CHAIRMAN'S
INITIALS
CHAIRMAN'S
INITIALS
MINUTE BOOK
S No State/Centre
Name of the Officer
87 Uttarakhand
Shri Piyush Kumar
88 Uttarakhand
Shri Vipin Kumar
89 Uttar Pradesh
90 Uttar Pradesh
91 Uttar Pradesh
92 West Bengal
Ms. Smaraki Mahapatra
93 West Bengal
Shri Khalid Anwar
Shri R.K. Tiwari
Shri Mukesh Kumar
Meshram
Shri Vivek Kumar
Charge
Additional Commissioner,
Commercial Taxes
Additional Commissioner,
Commercial Taxes
Additional Chief Secretary
Commissioner, Commercial Taxes
Additional Commissioner
Commissioner, Commercial Taxes
Sr. Joint Commissioner, Commercial
Taxes
Page 54 of 65
OOK DEPOT
9000
JAYNA
MINUTE BOOK
Annexure-3
Presentation on GST Rules
GST
GOODS AND SERVICES TAX
TOTAL
Presentation on GST Rules
Agenda
Introduction
Updated Rules for
âš« Registration
Payment
Refund
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of non-resident taxable person, a business
entity incorporated or established outside India has to submit a
tax identification number or unique number on the basis of
which the entity is identified by the Government of that country
or its PAN, if available for registration
Page 56 of 65
OOK DEPOT
MINUTE BOOK
MAYRA
Updated Rules for Registration (2/2).
NATION
TAX
MARKET
Provides for Aadhar based electronic verification code as a mode
of authentication of any document
Such verification to be done within two days of furnishing of
documents
Provides that Companies have to authenticate documents
through digital signature certificate only
Updated Rules for Payment
INATION
TAX
MARKET
Provides that a registered person upon noticing any discrepancy
in his electronic liability or cash ledger can communicate the
same to the officer exercising jurisdiction in the matter
Page 57 of 65
5
CHAIRMAN'S
INITIALS
CHAIRMAN'S
INITIALS
MINUTE BOOK
Updated Rules for Refund (1
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
E BOOK
Updated Rules for Invoice (1/2)
INATION
TAX
MARKET
Provides that maximum number of characters in Invoice No., Bill
of Supply, etc. can be 16
Provides for signature or digital signature of invoice issued by
recipient under reverse charge
Provides that in context of advance received
。 where the rate of tax is not determinable it will be paid @
18%
where nature of supply is not determinable it will be
deemed to be inter-State supply
8
NATION
Updated Rules for Invoice (2/2)
Particulars to be contained in payment voucher and refund
voucher have been provided
Provides that Special dispensation for issuance of invoice already
made available for Banking company, insurer, Financial
institution, etc. will be applicable in case of issuance of receipt
voucher, payment voucher, refund voucher also
Page 59 of 65
9
CHAIRMAN'S
INITIALS
CHAIRMAN'S
INITIALS
MINUTE BOOK
Updated Rules for ITC (1/2)
NATION
TAX
MARKET
Provides for availment of ITC on the basis
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
NATION
TAX
MARKET
Provides that the supplier of goods or services to distinct or
related persons can also opt to declare value as 90% of the price
charged by recipient
Provides that special valuation Rules in case of certain supplies
would be applicable only at the option of the supplier
Provides for valuation of goods repossessed from the defaulting
borrower for recovery of loan or debt
Valuation of services procured through pure agent simplified
Provides for valuation of supplies in case such supplies were
inclusive of tax
12
NATION
TAX
MARKET
Updated Rules for Composition
Provides for verification of intimation through electronic
verification code (EVC)
Page 61 of 65
13
ry
CHAIRMAN'S
INITIALS
CHAIRMAN'S
INITIALS
MINUTE BOOK
A.
Annexure-4
ADDENDUM DATED 18.05.2017 TO THE GST RATE SCHEDULE FOR GOODS
CIRCULATED ON 14.05.2017
[As per discussions in the Fitment Committee]
Amendments in the Detailed Horizontal Rate Sheets circulated to CCTs on 14.05.2017:
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
an or other vegetable materials [4601, 4602] {Plaits and similar products of
plaiting materials, whether or not assembled into strips; plaiting materials, plaits and similar
products of plaiting materials, bound together in parallel strands or woven, in sheet form,
whether or not being finished articles (for example, mats, matting, screens) of vegetables
materials such as of bamboo, of rattan, of other vegetable materials [4601] and Basketwork,
wickerwork and other articles, made directly to shape from plaiting materials or made up from
goods of heading 4601; articles of loofah [4602]} presently recommended to be at 18% may
be kept at 12%.
7. Fly ash bricks [Ch. 68] presently recommended to be at 18% may be kept at 12%, along with
sand lime bricks.
8. Indigenous handmade musical instruments [Ch. 92] presently recommended to be at 12% may
be kept at Nil.
9. Branded broomsticks, phool bahari jhadoo (9603 10 00) presently recommended to be at 18%
may also be kept at 5% the ra
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ional Skill Development
Corporation or the Sector Skill Council
in relation to
(a) the National Skill Development Programme implemented by
the National Skill Development Corporation; or
(b) a vocational skill development course under the National Skill
Certification and Monetary Reward Scheme; or
(c) any other Scheme implemented by the National Skill
Development Corporation.”
Services of assessing bodies empanelled centrally by Directorate Exemption may be
General of Training, Ministry of Skill Development and continued
Entrepreneurship by way of assessments under Skill Development
Initiative (SDI) Scheme
Services provided by training providers (Project implementation
agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana
under the Ministry of Rural Development by way of offering skill or
vocational training courses certified by National Council For
Vocational Training.
64. Services by way of sponsorship of sporting events organised, –
(a) by a national sports
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n Mantri
Awas Yojana;
Exemption at (bb)
may be continued in
respect of pure
labour contracts.
Services by way of construction, erection, commissioning, or Exemption at (bb)
installation of original works pertaining to,-
may be continued in
(b) a single residential unit otherwise than as a part of a residential respect of pure
complex;
labour contracts.
67. Services of general insurance business provided under following Exemption may be
schemes –
continued and its
(a) Hut Insurance Scheme;
(b) Cattle
Insurance
present
expanded to include
scope
under Swarnajaynti Gram Swarozgar Yojna (earlier
known
as
State
insurance
Integrated Rural Development Programme);
schemes.
(c) Scheme for Insurance of Tribals;
CHAIRMAN'S
INITIALS
(d) Janata Personal Accident Policy and Gramin Accident Policy;
(e) Group Personal Accident Policy for Self-Employed Women;
(f) Agricultural Pumpset and Failed Well Insurance;
(g) Premia collected on export credit insurance;
(h) Weathe
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =