Key outcomes of 25th GST Council meeting \u2013 Rejigs rates on 82 items & gears up for simple return filing
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 20-1-2018<\/p>\n
Dear Professional colleague,
\nKey outcomes of 25th GST Council meeting – Rejigs rates on 82 items& gears up for simple return filing
\nThe 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.
\nWith the conclusion of the 25th GST Council meet on January 18, 2018, the gist of the key takeaways from the meeting are as under:
\nPolicy Changes
\n * 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 retur<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ide for inter-state movement with effect from February 01, 2018 and for intra-state movement of goods, date shall be announced by each state separately but not later than June 01, 2018. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n posite supply of construction of flats etc. and to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the same effective rate of GST on property built on leasehold and freehold land. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d for providing (for instance, centralized cooking or distributing) mid-day meal scheme by an entity registered under section 12AA of IT Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ocated in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n es for using totalisator for purpose of betting, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n To exempt services by way of fumigation in a warehouse of agricultural produce. 87- old and used motor vehicle (other than Medium and large cars and SUVs) on the margin of the supplier = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ther than de-oiled rice bran) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Key outcomes of 25th GST Council meeting \u2013 Rejigs rates on 82 items & gears up for simple return filingBy: – Bimal jainGoods and Services Tax – GSTDated:- 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 … Continue reading “Key outcomes of 25th GST Council meeting \u2013 Rejigs rates on 82 items & gears up for simple return filing”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9985","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9985"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9985\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n\tThe report and recommendations submitted by the Committee on Handicrafts were also accepted by the GST Council.
\nRecommendation for GST Rate changes on SERVICES:
\nHealthcare
\nClarification has been made w.r.t. supplies made by hospitals, as under:
\n\tServices provided by senior doctors\/consultants\/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt.
\n\tThe 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.
\n\tFood 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 f<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n\tTo tax renting of immovable property by government or local authority to a registered person under reverse Charge while renting of immovable property by government or local authority to an un-registered person shall continue to be taxed under forward charge
\n\tTo 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%.
\nTour operator service
\n\tTo allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service
\nServices provided to Government
\n\tTo 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)
\n\tTo expand pure services exemption under S. No. 3 of Notificat<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n\tTo 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.
\n\tTo 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 attr<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nHousehold services
\n\tTo levy GST on the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, @ 5% without ITC.
\n\tTo reduce GST rate on tailoring service from 18% to 5%.
\nEntertainment, Events and Amusements
\n\tTo 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%.
\n\tTo 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.
\n\tTo clarify that elephant\/ cam<\/p>\n
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\nInsurance
\n\tTo enhance the limit to ₹ 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
\n\tTo exempt reinsurance services in respect of insurance schemes exempted under S. Nos. 35 and 36 of notification No. 12\/2017-CT (Rate).
\n\tTo 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.
\n\tTo 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 retros<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n are taxable at 28%. Services given by race-course by way of license to bookmaker which is not a service by way of betting and gambling, is taxable at 18%.
\n\tTo insert a provision in GST Rules under section 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
\n * 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.
\n\tTo insert in GST rules under section 15 of GST Act,-
\n 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.
\nOther Services
\n\tTo clarify that exemption of ₹ 1000\/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels.
\n\tTo extend GST exemption on Viability Gap Funding (VGF) for a period of 3 <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n\tTo clarify that fee paid by litigants in the Consumer Disputes Commissions and any penalty imposed by these Commissions, will not attract GST.
\nRecommendation for GST Rate changes on GOODS:
\nThe GST Council has recommended revising or clarifying the applicability of GST rates on 29 products. Few major recommendations are as under:
\nList of goods on which GST rate recommended to be reduced:
\nChapter\/Heading\/Sub-heading\/Tariff item
\nExisting rate (%)
\nRecommended Rate (%)
\nCondition
\n87- old and used motor vehicle (Medium and large cars and SUVs) on the margin of the supplier
\n28
\n18
\nNo ITC of ED\/ VAT\/ GST paid on such vehicle has been availed
\n8702 – Buses for use in public transport which exclusively run on bio-fuels<\/p>\n
\n28
\n12
\nNo ITC of ED\/ VAT\/ GST paid on such vehicle has been availed
\n1704- Sug<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nNIL
\n5
\nProposed NIL rate items:
\n\tVibhuti
\n\tParts and accessories for manufacture of hearing aids.
\n\tDe-oiled rice bran
\nChanges in Compensation cess rate on certain goods:
\nS. No
\nChapter\/ Heading\/ Sub-heading\/ Tariff item
\nDescription
\nPresent Compensation Cess Rate
\nCompensation Cess Rate Recommended
\n *
\n 8702
\nMotor 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.
\n15%
\nNil
\n87
\nOld 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.
\nApplicable rate
\nNil
\n87
\nAll types of old and used motors vehicles [other than medium and large cars and <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n