28th GST Council Meeting - Key Highlights and Decisions

Last updated: 22 July 2018

28th Goods and Service Tax (GST) Council meeting to be held today on 21st July 2018 in New Delhi. Yesterday, prior to the 28th Council meeting, the preparatory meet was conducted to discuss the broad agendas of the meeting.

What's Expected:

Key decisions of the GST Council meeting might include significant relief through Rationalisation of tax rates (28% tax rate to be lowered), Simplification of Annual Return i.e. GSTR 9, ITC claim by employers to be allowed, Applicability of the RCM might be reduced to only a few important services.

Key Highlights and Decisions:

Exempted from GST:

GST on sanitary napkins has been removed
Rakhi, without precious material like gold, silver etc
Raw material used in brooms
Fortified Milk
Saal leaves

White Good / Products reduced from 28% to 18%:

Washing Machine
Vaccum cleaners
Food grinders, mixers
Watercooler
Refrigerators -Freezers
Cosmetics
Perfumes
Paint

Other Major Reliefs provided in the GST Council meeting:

Tax on Bamboo flooring reduced to 12%
Reverse Charge Mechanism (RCM) to be deferred for next 1 year
Simpler return process has been approved
GST on Ethanol (Used in Petrol, Diesel) reduced to 5%
Cancellation of GST Registration simplified - Effective from date of application and no returns to be filled thereafter
Taxpayers - yet to register under GST has been given a final extension till August 31 and any late penalty would be waived off giving relief to taxpayers.
Ebooks to be reduced from 18% to 5%
E-way Bill mistakes - now to be covered under Standard Operation Procedure (SOP)
The threshold for GST Composition Dealers increased to 1.5 crores
Quarterly returns for Traders having turnover up to 5 crores
GST on White Goods like Washing Machine, Television, AC, Paints, Perfumes, Water Coolers reduced to 18% from earlier 28%