GST Council has recommended the following amendments in it’s 28th Council meeting held on 21st July 2018:

1. Taxpayers may opt for multiple GST registrations within a State/ Union territory in respect of multiple places of business located within the same State/ Union territory.

2. For opting for GST composition scheme upper limit of turnover to be raised from Rs. 1 crore to Rs. 1.5 crore.

3. Suppliers of services, other than restaurant services, can opt composition service and provide service upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.

4. The threshold exemption limit for GST registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.

5. GST Council Approves Quarterly Returns for Taxpayers having Turnover upto 5 Crores. 93% of GST dealers will now be exempted from filing monthly returns.

6. GST Reverse charge mechanism to be deferred for one year. Levy of GST on RCM on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons.

7. Taxpayers who are yet to register under GST as per law will be given on extension till August 31 and any late penalty would be waived off.

8. Changes in Rates of GST on Goods and Services;

A. Some of the goods exempted from GST are,

  • Sanitary pads
  • Fortified milk
  • Raw material used in brooms
  • Deities made of stone, marble or wood
  • Raakhis, without any precious metals
  • Commemorative coins circulated by the RBI or government
  • Saal leaves

C. From 18% to 5% ;

  1. GST on ethanol sold to oil companies for blending with petrol and diesel reduced to 5 percent from 18 percent earlier
  • GST on imported urea reduced to 5 percent
  1. GST on E-books reduced to 5 percent from 18 percent

C. From 12% to 5% ;

  • Handloom dari
  • Fertiliser grade phosphoric acid

D. From 28% to 18% ;

  • Lithium-ion batteries
  • Vaccum cleaners
  • Food grinders, mixers
  • Shavers, hair clippers
  • Storage water heaters
  • Electric smoothing irons
  • Water cooler
  • Ice cream freezer
  • Refrigerators
  • Hand dryes
  • Cosmetics
  • Perfumes
  • Scents
  • Paint
  • Varnishes

E. The following transactions to be treated as no supply (no tax payable on these ) under Schedule III:

  • Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  • Supply of warehoused goods to any person before clearance for home consumption; and
  • Supply of goods in case of high sea sales.

9. Big relief for hotels as GST rate of 28% would not apply, if the actual tariff value is less than Rs.7,500 even though the published tariff may be more than that.

10. Footwear priced below Rs.1,000 will attract 5% GST.

11. Relating to textile industry, Input credit allowed for fabric.

12.  No decision has been taken on Sugar cess.

Press Releases related to 28the GST Council Meeting on 21st July 2018

GST rate on Services- 27 Major Changes in 28th GST Council meeting

List of Changes in GST Rate on Goods in 28th GST Council Meeting

GST council approves Simplified GST Return

28th GST Council meeting- Key Takeaways

GST migration window for tax payers till 31st August, 2018

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