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GST-rates-on-goods-and-services-reduced-by-GST-Council

 

GST rates on goods and services reduced by GST Council

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Introduction-

GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to changes in GST rates on goods and services. The decisions of the GST Council have been presented in this note for easy understanding. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.

 
The major changes are as under-
  • New GST Return filing system to be started on trial basis from 1st April 2019 and will be effective from 1st July 2019.
  • Input tax credit for financial year 2017-18, has allowed up to 31st March 2019.
  • Late fees waived for all GST returns for the period from July 2017 to September 2018, up to 31st March 2019.
  • ITC cannot be availed through FORM GSTR-9 &FORM GSTR-9C
  • The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019
  • The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.
  • The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019.
  • Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality.
See the related post : GST credit on Capital Goods
 

GST rate reduction on goods which were attracting GST rate of 28% 

Change in GST Rate of Tax

Items

28% to 18%

Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483

Monitors and TVs of up to screen size of 32 inches

Re-treaded or used pneumatic tyres of rubber

Power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium ion battery

Digital cameras and video camera recorders

Video game consoles and other games and sports requisites falling under HS code 9504

28% to 5%

Parts and accessories for the carriages for disabled persons

   

GST rate reduction on other goods,-

Change in GST Rate of Tax

Items

18% to 12%

Cork roughly squared or debagged

Articles of natural cork

Agglomerated cork

18% to 5%

Marble rubble

12% to 5%

Natural cork

Walking Stick

Fly ash Blocks

12% to 0%

Music Books

5% to 0%

Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container

Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

 
GST on solar power generating plant and other renewable energy plants
  • GST rate of  5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.
  • Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.
  • To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.

 

 
Reduction in GST rates/exemptions on services:
  • GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.
  • GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
  • Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
  • Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).

 




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