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 …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
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.
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.
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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