The 37th GST Council meeting took place on 20th September 2019 at GOA. In this meeting, the council took following decisions relating to changes in GST rates, ITC eligibility criteria, exemption and clarification on connected issues. Further, the council has been proposed to changes in some procedural aspects under GST.
Rate reduction/ Exemption in case of services
1. On Hotel accommodation
|
Transaction Value per Unit |
Old Rates |
New Rates |
|
Rs. 1000 and less |
Nil |
Nil |
|
Rs. 1001 to Rs. 2500 |
12% |
12% |
|
Rs. 2501 to Rs. 7501 |
18% |
12% |
|
Rs. 7501 and more |
28% |
18% |
2. On Outdoor Catering
- Other than in premises having daily tariff of Rs. 7501 and above 'From 18% with ITC to 5% without ITC
- In premises having daily tariff of accommodation of Rs. 7501 and above 18% with ITC shall remain same.
3. Job work services in relation to diamonds
- GST reduce from 5% to 1.5%.
4. Job work in engineering industry except in relation to bus body building
GST reduces from 18% to 12%.
- Exemption on storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetables fibres such as cotton, flax, jute, etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice coffee and tea.
- Exemption increase of GST on export freight by air or sea by another year, i.e. till 30.09.2020.
- Exemption of insurance scheme named 'BANGLA SHASYA BIMA' crop insurance scheme of west Bengal govt.
- Exemption to intermediary services provided to a supplier of goods and recipients of goods when both are located outside taxable territory.
- An option has given to registered authors to pay GST on royalty charged from publishers under forward Charge.
- Allow RCM to supplier paying GST @5% on renting of vehicle, from registered person other than body corporates to body corporates.
Reduction/Exemption of GST in case of Goods
|
Goods |
Rates |
|
Slide Fasteners |
18% to 12% |
|
Marine Fuel 0.5% |
18% to 12% |
|
Wet Grinders |
12% to 5% |
|
Dried tamarind, Plates and cups made up of leaves |
5% to Nil |
|
Cut and polished semi- precious stones |
3% to 0.25% |
|
Specified goods for petroleum operation under HELP |
Applicable Rate to 5% |
|
Imports of specified defense goods (upto 2024) |
Exempt |
|
Supply to FIFA and other specified persons for Under-17 Women's football world cup in India |
Exempt |
|
Supply to Food and Agriculture organisation for Specified projects in India |
Exempt |
|
Fishmeal from 1.07.17 to 30.09.2019 |
Exempt |
|
Pully, wheels and other parts |
12 % |
|
Passenger Vehicle engine capacity 1500 CC in case of diesel and 1200 CC in case of Petrol and length not exceeding 4000MM designed and carrying upto 13 persons. |
1% compensation cess for petrol 3% compensation cess for diesel |
|
Import of Silver/Platinum by specified nominated agencies |
Exempt |
|
Supply of Silver/Platinum by Specified nominated agencies to exporters for exports of jewellery. |
Exempt |
|
Goods Increase of GST in case of Goods |
Rates From |
|
Goods Falling under chapter 86 |
5% to 12% |
|
Caffeinated Beverages |
18% to 28%+12% compensation cess |
|
Polypropylene/ Polyethylene Woven and Non-Woven Bags and sacks |
Uniform GST rate of 12% |
Recommendation - Procedural aspects
- Relaxation in Filing if Annual Return for FY 2017-18 and 2018-19 for composition taxpayer and those taxpayers who have aggregate turnover up to Rs. 2 Cr.
- Committee of Officers to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.
- Extension of last date for filing of appeals against order of Appellate Authority before the GST Appellate Authority.
- Imposition of restrictions on availment of ITC in cases where details of outward supplies are not furnished by the supplier under section 37 of the CGST Act, 2017.
- New return system to be introduced from April,2020 (earlier proposed from October, 2019).
- Issuance of circulars for uniformity of application of law across all Jurisdictions:
- Procedure to claim refund in Form GST RFD-01A subsequent to favourable order in appeal or any other forum.
- eligibility to file a refund application in form GST RFD-01A for a period and category under which a Nil refund application already been filed.
- clarification regarding supply of Information Technology enabled services being made on own account or as intermediary.
- Rescinding of circular no. 105/24/2019-GST, ab-initio, which was issued in respect of post-sales discount.
- Integrated refund system with disbursal by single authority to be introduced from 24th September, 2019.
- In principle decision to link Aadhaar with registration of taxpayers under GST and examine the possibility of making Aadhar mandatory for claiming refunds.
- To prescribe the reasonable restrictions to tackle the fake invoices and fraudulent refunds.
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