The all-powerful GST Council meeting headed by the Hon’ble Finance Minister, Mr. Piyush Goyal held for the 28th time with an agenda inter-alia to review the rates on basis of representation made by the Trade & Industries, take up issues pertaining to simplification of returns filing under GST & discussion on bringing-in Aviation Turbine Fuel and natural gas into GST net.
With the conclusion of the 28th GST Council meet on July 21, 2018, the gist of the key takeaways from the meeting are as under:
Recommendations on Policy Changes
- Simpler return filing process approved.
- Quarterly returns for business turnover up to Rs 5 crore instead of monthly filings. However, tax payment would be monthly. Nearly 93 percent traders and small business will get benefited from this.
- Exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh, Himalaya, Sikkim, increased from Rs 10 lakh to 20 lakh
Recommendation for GST Rate changes on SERVICES:
Hotels to be taxed on actual tariff basis not on declared tariff
Recommendation for GST Rate changes on GOODS:
- Rates for 17 white goods including washing machine, Refrigerators, TV, Video games, Vacuum cleaners, Trailers, Juicer mixer, Grinders, Shavers & Hairdryers, water cooler, water heaters, Lithium iron batteries, electric iron -- cut by 10 percent from 28 percent to 18 percent. GST rate of 18% will be applicable to TVs up to 68 cm (27 inch) in size
- Sanitary napkins to get cheaper as it has been put under exempted category. Napkins were taxed at 12 percent earlier.
- Common-use foot wares Rs 1,000 to be taxed at 5 percent
- Rates on paints, wall putty and Varnished down to 18 percent from 28 percent
- Ethanol oil for oil companies to be taxed at 5 per cent in place of 18 percent earlier
- GST rates for all leather items reduced to 18 per cent from 28 percent
- GST rates cut to 18% for special purpose vehicles, work truck, trailers
- Rates on scents, toilet spray now under 18 per cent slab
- Marbles, stone and wood deities get an exemption. Rakhis, fortified milk also exempted.
- GST on bamboo flooring put under 12 percent category
- Handicraft items to now be taxed at 12 percent
- GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps etc reduced to 12%
- Goods and Services Tax on imported urea reduced to 5%.
Source: Economic Times