22nd GST Council Meeting – Revised GST Rates
22nd GST Council Meeting (6th Oct, 2017)
CMA Sandeep Kumar
22nd GST Council meeting held in Delhi on 6th Oct, 2017. 90 to 94% tax amount is received from large tax payers. Small tax payers were concerned about compliance. So, GST Council has taken Special attention to the SMEs (Small and Medium Enterprises) and Exports under this meeting. Compliance of SMEs has been reduces. Considering the small tax payers, the limit of composition scheme has been increased. Exporter’s refund has been arranged. Exporter can now collect taxes to remove his own blocked funding. The rate of some goods and services has been changed. In the provision of GST, there has been a change to the E-Way Bill, RCM and Returns. All the provisions made in the meeting are as follows.
- The limit for turnover in composition scheme raised from Rs 75 Lakhs to Rs 1 crore.
- Any person providing exempted service is eligible for compensation scheme.
- GST Council to allow quarterly filing of returns for businesses with annual turnover up to Rs 1.5 crore. (Non Composition Assesses)
- Service providers providing inter – state taxable supply up to 20 Lakhs (Special category state except Jammu and Kashmir up to 10 Lakhs) will be exempted from GST.
- Postponement of RCM (Reverse Charge Mechanism) till 31st March, 2018.
- Relief for jewellers as no need to furnish PAN card on jewellery purchase of more than Rs 50,000. (below Rs. 2,00,000)
- GST Council decides to roll-out e-way billing from April 2018.
- Refund to Exporters
- For Jul 2017 – Will Start from 10th Oct 2017.
- For Aug 2017 – Will Start from 18th Oct 2017.
- E-Wallet Facilities to Exporters and Small Trader from April 2018.
- The council allowed merchant exporter to pay 0.1% GST on the goods they source, which they can claim as input tax credit, to address the issue of blockage of funds.
- Pre GST vehicle lease would be able to avail abatement of 35%, implying that the present GST rate will be applicable only on 65% of the lease value. This facility would be available even when the vehicle is sold.
- Rate Under Composition Scheme
- Trader 1%
- Manufacturer 2% and
- Restaurants 5%.
- Return for Composition Assesses – Quarterly return GSTR 4 and Annual Return Total 5 Returns.
- Returns for Non Composition Assesses up to 1.5 Crore – Quarterly return GSTR 1, GSTR 2, GSTR 3, GSTR 3B and Annual Return.
- Petroleum products remain outside the ambit of GST
- Revenue secretary Hasmukh Adhia says that 90 percent of the taxpayers will file quarterly returns.
- GST rate on handicrafts may be cut from 12% to 5%.
- A few daily-use items to get cheaper. Some daily use items removed from 28 percent tax slab.
- In principle, GST Council has revised the rate of air-conditioned restaurants to 12 percent. A group of ministers has been formed to devise the mechanism. The GoM will submit its report in 10 days.
Full List of Revised Rates on 27 Goods
|S.N.||Items||Old Rate||New Rate|
|1.||Duty credit scrips||5%||Nil|
|2.||Khakra and plain chapatti||12%||5%|
|3.||Mango sliced dried||12%||5%|
|4.||Ayurvedic, Unani, Siddha, Homeopathy medicines, other than those bearing a brand name||12%||5%|
|5.||Paper waste or scrap||12%||5%|
|7.||Namkeens other than those put up in unit container and, –
+ bearing a registered brand name; or
+ bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily
|9.||Plastic waste, parings or scrap||18%||5%|
|10.||Rubber waste, parings or scrap||18%||5%|
|11.||Cullet or other waste or scrap of Glass||18%||5%|
|12.||Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government, subject to specified conditions||18%||5%|
|13.||E-Waste||28 / 18 %||5%|
|14.||Hard Rubber waste or scrap||28%||5%|
|15.||All synthetic filament yarn, such as nylon, polyester, acrylic, etc.||18%||12%|
|16.||All artificial filament yarn, such as viscose rayon, Cuprammonium||18%||12%|
|17.||Sewing thread of manmade staple fibres||18%||12%|
|18.||Yarn of manmade staple fibres||18%||12%|
|19.||Sewing thread of manmade filaments, whether or not put up for retail sale||18%||12%|
|20.||Imposing GST only on the net quantity of superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB]||18%||18% (Clarification to be issued)|
|21.||Plain Shaft Bearing 8483||28%||18%|
|23.||Modelling paste for children amusement||28%||18%|
|24.||Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP||28%||18%|
|25.||All goods falling under heading 6802 [other than those of marble and granite or those which attract 12 percent GST]
|26.||Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal||28%||18%|
|27.||Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps||28%||18%|
The Council also rationalised GST rates on job work services:
|1.||In relation to all products falling in Chapter 71 (including imitation jewellery)||5%|
|2.||In relation to food and food products falling under Chapters 1 to 22 of the HS Code (except packing of processed milk into packets)||5%|
|3.||in relation to products falling under Chapters 23 of the HS Code except dog and cat food put up for retail sale||5%|
|4.||In relation to Manufacture of Umbrella||12%|
|5.||In relation to manufacture of clay bricks falling under CTH 69010010||5%|
|6.||Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil||5%|
|7.||Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 12%||12%|
|8.||Services by way of printing on job work basis or on goods belonging to others in relation to printing of goods falling under Chapter 48 or 49, other than those covered by (6) and (7) above||18%|
|9.||Services by way of printing in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer||12%|
|10.||Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @12%, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer||12%|
|11.||Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @18% or above, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer||18%|
23rd GST Council meeting will schedule on November 9 and 10 in Guwahati, Assam.
CMA Sandeep Kumar B. Com (A&F), ACMA --------------------------------- He is a practicing Cost and Management Accountant with over 7 years Teaching Experience. He is visiting faculty of ICAI and ICSI. He taken more than 35 Seminar / Workshop in NIFT, Colleges of DU, Pre Placement Orientation Program by ICMAI, National Seminar in Dibrugarh, Assam etc Email: email@example.com Mob. : 9311210010 / 9868600010