GST updates 28/07/2018, by Krishnakumar A, FCA Key Takeaways – 28th GST Council Meeting dated 21st July 2018

GST updates 28/07/2018, by Krishnakumar A, FCA Key Takeaways – 28th GST Council Meeting dated 21st July 2018

21 JULY 2018 – GST UPDATES – GST COUNCIL 28th MEETING

Re-opening of Migration window – A relief to defaulters

  • Opening the migration window for taxpayers, who
    received provisional IDs but could not complete the
    migration process
  • Approach the jurisdictional Central Tax/State Tax
    nodal officers with the necessary details on or
    before 31 August 2018
  • The Decision to waive the late fee payable for
    delayed filing of return in such cases

Multiple reliefs to following categories of services

  • Agriculture, farming and food processing industry,
  • Banking & IT Sector – Relief by exempting services
    supplied by an establishment of a person in India to
    any establishment of that person outside India
    [related party]
  • Old Age Home – Exempt supply of services by an old
    age home run by State / Central Govt or by a body
    registered under 12AA of Income Tax Act to its
    residents (aged 60 years or more) against
    consideration up to Rs. 25,000/- p.m per member.

GST rate on Services – Reliefs

  • Education Sector – GST on the supply of e-books
    has been reduced from 18 to 5%.
  • Hotel Industry – Rate of tax on accommodation
    service shall be based on transaction value instead
    of declared tariff
  • Export of Goods – Extend the exemption granted on
    outward transportation of all goods by air and set up
    to 30th September 2019.

GST rate on Goods – Major Rate Cuts

  • To Nil Rate: Stone/Marble/Wood Deities, Rakhi,
    Sanitary Napkins, Coir pith compost etc.
  • Paints and Lithium-ion batteries – 28% to 18%
  • Home Appliances – Washing machine, Refrigerators,
    Freezers, TVs up to 68cm, Vacuum cleaners, Mixer
    grinders, Shavers & Hairdryers, Water cooler,
    Storage water heaters, Electric iron – 28% to 18%
  • 5% GST is being extended to footwear having a
    retail sale price up to Rs. 1000 per pair
  • Handicraft items – Specified items 18% to 12% and
    12% to 5%
  • Fortified milk exempted from GST
  • Water supplied for public purposes (other than in
    sealed containers) does not attract GST
  • Refund of accumulated credit on account of inverted
    duty structure to fabric manufacturers

Simplified GST Return

  • Quarterly filing of return for the small taxpayers
    having a turnover below Rs. 5 Cr as an optional
    facility.
  • It is similar to the main return with monthly payment
    facility but for small traders making only B2C supply
    or making B2B + B2C supply.
  • Returns are called Sahaj and Sugam.
    Information required to be filled lesser than that in
    the regular return.

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