Goods and Services Tax – GST – By: – Bimal jain – Dated:- 20-1-2018 – Dear Professional colleague, Key outcomes of 25th GST Council meeting – Rejigs rates on 82 items& gears up for simple return filing The all-powerful GST Council meeting headed by the Hon ble Finance Minister, Mr. Arun Jaitley held for the 25th time with an agenda to review the rates on basis of representation made by the Industries & Traders, take up issues pertaining to simplification of returns filing under GST & take corrective measures to restore falling revenue collection in GST. With the conclusion of the 25th GST Council meet on January 18, 2018, the gist of the key takeaways from the meeting are as under: Policy Changes Late fee payable by any registered person for failure to furnish following returns has been reduced to ₹ 50/- per day [and ₹ 20/- per day in case of Nil return] from ₹ 200/- per day: Form GSTR-1 (Containing outward supply details) Form GSTR-5 (to be filed by Non-
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h state separately but not later than June 01, 2018. The report and recommendations submitted by the Committee on Handicrafts were also accepted by the GST Council. Recommendation for GST Rate changes on SERVICES: Healthcare Clarification has been made w.r.t. supplies made by hospitals, as under: Services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt. The entire amount charged by hospital from the patients including the retention money and the fee/payments made to the doctors etc., towards the healthcare services provided by the hospitals to the patients are exempt from leviability of GST. Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. Educational Institutions Clarification has been made w.
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overnment or local authority to an un-registered person shall continue to be taxed under forward charge To clarify that leasing or rental service, with or without operator, of goods, attracts same GST as supply of like goods involving transfer of title in the said goods. Therefore, the GST rate for the rental services of self-Propelled Access Equipment (Boom. Scissors/Tele-handlers) is 28%. Tour operator service To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service Services provided to Government To amend entry 3 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, so as to exempt pure services provided to Govt. entity. (in relation to function entrusted to Panchayat or Municipality) To expand pure services exemption under S. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, so as to include composite supply involving predominantly supply of services i.e. upto 25% of supply of goods. To
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share of land, so as to ensure that buyers pay the same effective rate of GST on property built on leasehold and freehold land. To defer the liability to pay GST in case of TDR against consideration in the form of construction service and on construction service against consideration in the form of TDR to the time when the possession or right in the property is transferred to the land owner by entering into a conveyance deed or similar instrument (eg. allotment letter). No deferment in point of taxation in respect of cash component. To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%. To reduce GST rate on construction of metro and monorail projects (construction, erection
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usekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, @ 5% without ITC. To reduce GST rate on tailoring service from 18% to 5%. Entertainment, Events and Amusements To reduce GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18%. To increase threshold limit for exemption under entry No. 80 of Notification No. 12/2017-C.T. (Rate) for all the theatrical performances like Music, Dance, Drama, Orchestra, Folk or Classical Arts and all other such activities in any Indian language in theatre GST from ₹ 250 to 500 per person and to also extend the threshold exemption to services by way of admission to a planetarium. To clarify that elephant/ camel joy rides are not classified as transportation services and attract GST @ 18% with threshold exemption to small services providers. To exempt services provided by and to Fédération Inte
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₹ 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of ₹ 50,000 To exempt reinsurance services in respect of insurance schemes exempted under S. Nos. 35 and 36 of notification No. 12/2017-CT (Rate). To define insurance agent in the reverse charge notification to have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938, so that corporate agents get excluded from reverse charge. To exempt services provided by the Naval Insurance Group Fund by way of Life Insurance to personnel of Coast Guard under the Group Insurance Scheme of the Central Government retrospectively w.e.f. 1.7.2017. Petroleum products To exempt government s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se. To reduce GST to 12% in respect of mining or exploration serv
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ction 15 of GST Act that the value of lottery shall be 100/112 or 100/128 of the price of lottery ticket notified in the Gazette To add, in the GST rate schedule for goods at 28%, actionable claim in the form of chance to win in betting and gambling including horse racing. To insert in GST rules under section 15 of GST Act,- Notwithstanding anything contained in this chapter, value of supply of Betting & Gambling shall be 100 % of the face value of the bet or the amount paid into the totalizator. Other Services To clarify that exemption of ₹ 1000/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels. To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement of RCS airport from the present period of one year. To tax time charter services at GST rate of 5%, that is at the same rate as applicable to voyage charter or bare boat charter, with the same conditions. To exempt supply of
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e GST Council has recommended revising or clarifying the applicability of GST rates on 29 products. Few major recommendations are as under: List of goods on which GST rate recommended to be reduced: Chapter/Heading/Sub-heading/Tariff item Existing rate (%) Recommended Rate (%) Condition 87- old and used motor vehicle (Medium and large cars and SUVs) on the margin of the supplier 28 18 No ITC of ED/ VAT/ GST paid on such vehicle has been availed 8702 – Buses for use in public transport which exclusively run on bio-fuels – 87- old and used motor vehicle (other than Medium and large cars and SUVs) on the margin of the supplier 28 12 No ITC of ED/ VAT/ GST paid on such vehicle has been availed 1704- Sugar boiled confectionary 18 12 – 2201- Drinking water packed in 20 litters bottles 2809- Fertilizer grade Phosphoric acid 29 or 38- Bio-diesel 38- Specified bio-pesticides 4418- Bamboo wood building joinery 8424- Drip irrigation System 8424- Mechanical sprayer 13- Tamarind Kernel Powder 18 5
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tor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions. 15% Nil 87 Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him. Applicable rate Nil 87 All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him. Applicable rate Nil Apparently, the GST Council in its 25th meeting has made significant revamp of GST framework. This meeting of the GST Council was particularly crucial as th
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