GST in its 22nd Council Meeting took remarkable decisions. After approx 3 months of roll out of GST, taxpayers are facing problems. In order to ease out these problems, significant changes has been made.
In this write-up, highlights of the changes taken in 22nd GST council meet will be discussed:
♣ Increase in threshold limit under composition scheme
The turnover limit under composition scheme has been raised from Rs. 75 lakh to Rs. 1 crore.
♣ Big relief to exporters
Exporters were continuously facing liquidity issue. Keeping in view of the issues, refund process will be started as per the following schedule:
| For the month of | Scheduled date for refund process |
| July | By 10th October, 2017 |
| August | By 18th October, 2017 |
♣ E-way bill
E- way bill provisions deferred till April, 2018.
♣ Quarterly returns
Another remarkable change in GST, quarterly returns for taxpayers with annual turnover less than Rs 1.5 crores. Tax to be paid on monthly basis.
♣ Shifting of liability under RCM
Reverse charge mechanism shifts the liability to pay the tax on the buyer rather than the seller.
♣ E-wallets
“As a long term solution, an e-wallet will be created for every exporter where a notional amount will be given in advance…the refund will be offset later against that amount,” Jaitley said. The e-wallet option will be launched by 1st April, Jaitley added.
♣ Revised rates
| Name of commodity | Present Rate | GST Rate Recommended by the GST Council |
| Unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra
|
12% | 5% |
| Man-made yarn used in textile sector
|
18% | 12% |
| Stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts
|
28% | 18% |
| E-waste | 28% | 5% |
| Food packets given to school kids under Integrated Child Development Scheme (ICDS)
|
12% | 5% |
| Job works like zari, imitation, food items and printing items
|
12% | 5% |
| Government contracts involving high amount of labour
|
12% | 5% |
| AC Restaurant | 18% | 12% |
| Poster colours | 28% | 18% |
| Modelling paste for children amusement | 28% | 18% |
| Plastic waste, parings or scrap | 18% | 5% |
| Paper waste or scrap | 12% | 5% |
| Duty credit scrips | 5% | Nil |
| Sewing thread of manmade filaments, whether or not put up for retail sale | 18% | 12% |
| All goods falling under heading 6802 [other than those of marble and granite or those which attract 12% GST] | 28% | 18% |
| Cullet or other waste or scrap of Glass | 18% | 5% |
| Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal | 28% | 18% |
| Plain Shaft Bearing 8483 | 28% | 18% |
| Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP | 28% | 18% |
| Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps | 28% | 18% |
| Biomass briquettes | 18% | 5% |
♣ IGST exemption on imports of goods:
| Description | Present Rate | GST Rate Recommended by the GST Council |
| IGST exemption on imports of rigs imported for oil / gas exploration and production projects under lease, subject to the following conditions that:
(i) Integrated tax leviable under section 5(1) of the IGST Act, 2017 on supply of service covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017; (ii) The rig is not sold without the prior permission of the Commissioner of Customs of the port of importation; (iii) to re-export the goods within 3 months from the expiry of the period for which they were supplied under a transaction covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017 out of India; (iv) to pay on demand an amount equal to the integrated tax payable on the said goods but for the exemption under this notification in the event of violation of any of the above conditions and applicable interest. |
5% | Nil |
| Exemption from IGST on imports of medicines supplied free by international agencies like UNICEF, WHO, Red Cross etc. | 12%/5% | Nil |
| Exemption from IGST on imports of bona fide gifts upto CIF value limit of Rs. 5000 imported through post or air. | 28% | Nil |
♣ Service providers with revenue below Rs 20 lakh have been exempted from IGST as well.
Author’s Comment
After the conclusion of 22nd GST council meet, it can be easily concluded that these decisions were need of the hour, because inspite of extension of deadline of various due dates, taxpayers were continuously facing problems. It seems that these changes will definitely solve the issues of taxpayers to a large extent especially to the exporters.
Hope this information will help you in your Professional endeavors. For further assistance/query, feel free to write to us.
Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com
Disclaimer:
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.
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Govt reduces GST rate on 28 type of goods and provided IGST exemption on few goods
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Author Bio
Kindly tel me what is effective date of revised GST Rate
HI
In the rate reduction list,
Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps already not in 28%.
already in 18% (not covered in any of the schedule). that means no change in tax
Kindly clarify
♣ Shifting of liability under RCM
Reverse charge mechanism shifts the liability to pay the tax on the buyer rather than the seller.
ABOVE POINT IS CONFURISNG, WHETHER RCM IS KEPT PENDING/SUPENDED SINCE NOW THE RECIVER /BUYER OF GOODS/SERVICE IS RESPONSIBLE FOR
RCM- WHETHER IT IS SHIFTED TO SELLER?
VERY GOOD INFORMATIONS
VERY GOOD INFORMATIONS THANKS
TAX GURU IS PROVING DAY TO DAY LATEST UPDATES TO ALL TAX HOLDERS, SO IT IS NO. 1 WEBSITE .
9866692677
THANK YOU
GST rate on some items reduced for ex. diesel engine parts. what about the claim on transitional stock credits TRANS 1 which is already filed and utilized.