GST Council in its 11th Meeting held on 4th March 2017 approved CGST / IGST Laws, Cap rate and restaurants having turnover upto 50 Lakhs to be covered under Composition Scheme.
1. GST Council today approved CGST and IGST Law. UGST and SGST laws to be approved in next meeting and after that the entire law will be placed before the parliament in forthcoming session and state assemblies after that.
2. 1st July 2017 is said to be the optimistic date for implementation of GST
3. Slab of GST rates was already decided which will remain 5%, 12%, 18%, 28% & Zero rate, however, since, this law is being implemented for long time, a maximum ceiling (cap rate) will be mentioned in law in order to leave some scope for increase in rates.
4. Cess will be only transient
5. In the model law, Composition scheme was not applicable to service sector but in today’s Council meeting it was decided to cover restaurants under Composition Scheme whose turnover is upto Rs. 50 Lakhs and rate would be 2.5% by the Centre & 2.5% by the State. The other restaurants will remain under regular rates.