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28th GST Council Meeting – Tax rate reduction, Easy return filing

CMA Dinesh Kumar Sharma 24 Jul 2018 6,321 Views 1 comment Print Goods and Services Tax | Articles

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28th GST Council Meeting was held on 21st July 2018 in New Delhi, In Meeting, the Government has simplified the GST return filing mechanism and also reduced the GST rates on many goods and services. This will further improving ease of doing business as this is the prime intention of Government.

There is approx. 85% reduction in goods in numbers which were attracting higher tax bracket of 28%. Earlier when GST was introduced in July 2017 there was approx. 226 number of items in 28% tax rate bracket now this number has been reduced to only 35 by GST council in recent meeting held on 21^st of july 2018. The main aim is to bring back higher tax bracket goods to lower tax bracket rate & 28% rate are only for super luxury & sin goods.

The highest tax bracket of 28% has been lowered to 18% on on daily-use items like shavers, perfumes, toiletries, cosmetics, hair dryers, , mixer grinder, vacuum cleaners, and some of consumer durables goods viz Refrigerators, freezers and other refrigerating , small screen television, washing machine, storage water heaters, paints and varnish, Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries etc.

Footwear where Retail sales price is up to INR 1000 will attract 5% GST, currently the limit of retail sales price is INR 500. Id arte of footwear is more than INR 1000 then 18% GST rate will applicable. There are many goods which attracts GST rate 18% or 12% has been lowered to 12%, 5% or 0%.

Small taxpayers having less than INR 5 Cr of turnover will file quarterly GST return & this will be as similar to monthly return. GST payments will be still monthly.

GST migration which were closed now reopened, Taxpayers who are now migrating will have to file GST return first along with the payment of late fee and on filing the return, the GSTN would provide credit by way of a reversal of the amount paid as late fees in the electronic cash ledger.

There will be simplified monthly returns. It will be simple and will have only two column

In one Column, the taxpayer will have to report outward supply and in another column he will report Inward Supply. Ie sale is in one column & purchase is in second column. Outward supply will show the tax payable whereas Inward supply the shows the amount of Input tax credit.

As per the original provision of GST, GST Invoices may be uploaded continuously by the supplier and these may be viewed and locked by the buyer to avail input tax credit.

Mostly return will be filled based on invoices uploaded by supplier and buyer & this process looks like UPLOAD —– LOCK —– PAY.

GSTN will introduced a new facility where NIL GST Return can be filed by taxpayer by simply sending an SMS.

These all approved amendments by GST councils will now be placed before the parliament for carrying out in respective GST Acts.