GST 16TH COUNCIL MEETING

Agenda of meeting: – The Union Minister for Finance, Shri Arun Jaitley chaired the 16th Meeting of the GST Council held on June 11,2017 at Vigyan Bhavan, New Delhi .Main agenda items of the 16th GST Council Meeting was:

♦ Confirmation of the minutes of the 15th GST Council meeting held on June 03,2017

♦ Approval of amendments to draft GST Rules and

♦ Rate Adjustment if any, based on the representations received from different trade and industry and their associations.

This meeting was important in the sense that GST is going to be implemented w.e.f. July 01, 2017.

GST rate on 66 items were reduced today by council

GST rate on 66 items were reduced today by council …Significant ones include School Bags and exercise Books. PADHEGA INDIA TABHI THO BADHEGA INDIA”@cbec_india

Finance Minister Arun Jaitley on Sunday chaired the 16th meeting of the GST Council which has decided:

♦ Increase in turnover limit for composition scheme

♦ Rate adjustment as received from various industry representative

♦ Finalising Accounts and Records Rules and their format

“The 133 representations received were considered at length and the officers’ committee made their recommendations… the council has reduced tax in 66 out of the 133 cases,” –Arun Jaitley

Revision in rate had been done on two bases:-

♦ New rate is near to Existing indirect tax rate

♦ Usability & frequency of Goods

Product

Movie tickets costing Rs 100 and below will now attract 18%, against 28% proposed earlier, while that above Rs 100 will continue to attract 28% GST.

Packaged food like pickles, mustard sauce and morabba will attract 12% GST, against 18% proposed earlier. Also, tax rates on cashew nuts have been cut to 5% from 12%.

Jaitley added that reducing the tax rate meant a revenue impact for the government, but lower tax incidence could help improve tax buoyancy and keep inflation low.

Increased in threshold limit for Composition Scheme u/s 10 of CGST Act

The GST Council, in its meeting held on 11th June, 2017, has recommended increase in the aforesaid turnover limit for Composition Levy for CGST and SGST purposes from Rs.50 lakh to Rs.75 lakh in respect of all eligible registered persons, as per Sec 10(1)
& Sec 10(2).

However, whether the same increased turnover limit for Composition levy will apply in case of Special Category States or not will be decided in the next GST Council meeting.

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The council also relaxed the Rs 50 lakh per annum turnover ceiling to Rs 75 lakh for businesses to take part in the GST Composition
Scheme. The scheme allows traders, manufacturers and restaurant owners to pay taxes at the rate of 1, 2, and 5% respectively.

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Proposal for Additional Exemption list for supply of Service

SN Supply of Services
84 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution
85 Services provided to the Government under any insurance scheme for which total premium is paid by Government
86 Services provided to the Government under any training programme for which total expenditure is borne by the Government

Revised GST Rate for Certain Services

SN Supply of Services GST Rate
13A Services by way of job work in relation to –

a) Textile yarns (other than man-made fibre/filament) & textile fabrics

b) Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN

c) Printing of books (including braille books), journals and periodicals

d) Processing of leather

5 % with full ITC
27A Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is Rs. 100 or less. 18% with Fill ITC

Exemption from registration to certain class

SN Particulars
1 Individual advocates (including senior advocates)
2 Individual sponsorship service providers (including players)

IGST Exemption

SN Particulars
1 Bilateral Commitments – Imports under Agreement between India and Pakistan / Bangladesh for regulation of Bus Service
2 Technical Exemptions for Temporary import/Re-Import

Revised GST Rate for Certain Goods

SN Description of Goods Earlier Rate Revised Rate
1. Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc. 5% 0%
2. Cashew nut 12% 5%
3. Cashew nut in shell 12% 5% [under reverse charge]
4. Raisin 12% 5%
5. Cereal grains hulled 5% 0%
6. Palmyra jiggery 18% 0%
7. Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly 18%/12% 12%
8. Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces 18% 12%
9. Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings 28% 18%
10. Bari made of pulses including mungodi 18% 12%
11. Ice and snow 12% 5%
12. Salt, all types 5% 0%
13. Bio gas 12% 5%
14. Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 12% 0%
15.  Insulin 12% 5%
16. (i) Menthol and menthol crystals,

(ii) Peppermint (Mentha Oil),

(iii) Fractionated / de-terpenated mentha oil (DTMO),

(iv) De-mentholised oil (DMO),

(v) Spearmint oil,

(vi) Mentha piperita oil

(vii)

18% 12%
17. Kajal [other than kajal pencil sticks] 28% Nil
18. Kajal pencil sticks 28% 18%
19. Agarbatti 12% 5%
20. Dental wax 28% 18%
21. All diagnostic kits and reagents 18% 12%
22. Plastic beads 28% 12%
23. Plastic Tarpaulin 28% 18%
24. (i) School satchels and bags other than of leather or composition leather;

(ii) Toilet cases [4202 12 10];

(iii) Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40];

(iv) Handbags of other materials excluding wicker work or basket work [4202 29 10].

28% 18%
25. Exercise books and note books 18% 12%
26. Kites 12% 5%
27. Children’s’ picture, drawing or colouring books 12% Nil
28. Coir mats, matting and floor covering 12% 5%
29. Headgear and parts thereof 28% 18%
30. Human hair, dressed, thinned, bleached or otherwise worked 28% 0%
31. Fly ash blocks 28% 12%
32. Pre cast Concrete Pipes 28% 12%
33. Salt Glazed Stone Ware Pipes 28% 18%
34. Glasses for corrective spectacles and flint buttons 18% 12%
35. Rough precious and semi-precious stones 3% 0.25%
36. Aluminium foil 28% 18%
37. Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs 18% 12%
38. All goods, including hooks and eyes 28% 18%
39. Pawan Chakki that is Air Based Atta Chakki 28% 5%
40. Fixed Speed Diesel Engines 28% 12%
41. Rear Tractor tyres and rear tractor tyre tubes 28% 18%
42. Rear Tractor wheel rim, tractor centre housing, tractor housing transmission,tractor support front axle 28% 18%
43. Weighing Machinery [other than electric or  electronic weighing machinery] 28% 18%
44. Printers [other than multifunction printers] 28% 18%
45. Ball bearing, Roller Bearings, Parts & related accessories 28% 18%
46. Transformers Industrial Electronics 28% 18%
47. Electrical Transformer 28% 18%
48. Static Convertors (UPS) 28% 18%
49. Recorder 28% 18%
50. CCTV 28% 18%
51. Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc. 28% 12%
52. Set top Box for TV 28% 18%
53. Computer monitors not exceeding 17 inches 28% 18%
54. Electrical Filaments or discharge lamps 28% 18%
55. Winding Wires 28% 18%
56. Coaxial cables 28% 18%
57. Optical Fiber 28% 18%
58. Perforating or stapling machines (staplers), pencil sharpening machines 28% 18%
59. Baby carriages 28% 18%
60. Intraocular lens 18% 12%
61. Spectacles, corrective 18%
62. Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers) 28% 18%
63. Bamboo furniture 28% 18%
64. Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines] 28% 12%
65. Swimming pools and padding pools 28% 18%
66. Muddhas made of sarkanda and phool bahari jhadoo 5% 0%
67. Postage or revenue stamps, stamp-post marks, first-day covers, etc. 12% 5%
68. Numismatic coins 12% 5%
69. Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability [These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)] 5%

The world’s largest fiscal reform, Goods and Services Tax (GST), should not be implemented with “jugaad” and the rollout date for the new indirect tax regime should be postponed by a month – Amit mitra (West Bengal Finance Minister)

What in Next council meeting?

√ Review Lottery Tax.

√ Finalise E-Way Bill Rules

√ Composition Levy for State mentioned in article 279A of constitution

[Views & Opinions Expressed are strictly personal]
Countdown starts for GPWR GST –The Conclusion

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