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%
Next special council meeting for MSME sector to be held on August 4th 2018
The effective date of the above decisions is yet to be notified in the official gazette.
Decisions from Earlier GST Council Meetings:
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