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Key outcomes of the 28th GST Council Meeting

Held on 21st July 2018, the all-powerful 28th Gst Council Meeting was headed by the Hon’bleUnion Finance Minister Mr.PiyushGoyalwith an agenda:

  • To review the rates on the basis of representation made by the Industries and Trade Enterprises
  • To simplify the GST return filing
  • Discuss bringing-on the Aviation Turbine Fuel and natural gas under GST net

There have been many other Gst Council meets, but this one was in particular important because of the GST slab rate adjustments and few other compliance-related issues which will be on the cards during the discussion. Few other points why this meeting was important was because of the discussion on:

  • To reduce tax rates on close to 30 items and simplify return forms
  • To simplify compliance-related norms
  • To discuss the three-bench National GST Appellate Tribunal
  • To discuss the key issues on the e-way bill and reverse the charge mechanism
  • To talk over the sugar cess issue

GST Council

Key takeaways from the meeting:

Items that come under GST exemption

Milk
Sanitary Pads
Raw materials used in brooms
Commemorative coins circulated by the government
Saal leaves
Deities made of marble, stone, or wood

Items under 12% to 5% GST rates

Fertilizer grade phosphoric acid
Handloom Dari

Items under 18% to 5% GST rates

Footwear below 1000 INR

Items under 28% to 18% GST rates

  • Lithium-ion batteries, Bamboo Flooring, Paint, Varnishes, Putty, wooden frames for painting, photographs, mirrors
  • Food grinders, juicer, mixers, Vaccum cleaners
  • Perfumes, Cosmetics, Scents
  • Shaver’s, Hair Clippers, Hand Dryers, Toilet Spray, Hair Curlers
  • Trailers, Special Purpose Vehicle, Work Truck, Concrete Mixer
  • Storage water heaters, Watercooler, Ice cream freezer, Electric smoothing irons, Refrigerators, Washing Machines, TV (up to 68 cm i.e. 27 inches)

Certain transactions to be treated as no supply

The following transactions to be treated as no supply (no tax payable) under Schedule III:

  • Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  • Supply of warehoused goods to any person before clearance for home consumption;
  • Supply of goods in case of high sea sales.

Issuing credit/debit notes

Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a financial year.

j) The cap on the amount payable for filing the appeal

Reversal of ITC

In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but the liability to pay interest is being done away with.

These recommendations will now be placed before the Parliament and the legislature of State and Union territories for approval and amending relevant GST Acts.

The new model proposes uploading of invoices by the supplier before 10th of next month that shall be subsequently posted in the viewing facility of the buyer by 12th of next month, who will then lock those invoices. The new returns filing model proposes single monthly return for all taxpayers except composition dealers, TDS/TCS and staggered return filing dates based on the turnover of the registered person.

Other major changes:

  • Simpler GST return filings
  • For almost 93% traders or SME’s with up to 5 crore turnover – fillings would be quarterly instead of monthly. However, tax payment would be monthly
  • Exemption limit of 10 Lac increased to 10 Lac for traders in – Sikkim, Assam, Himachal Pradesh and Arunachal Pradesh
  • Also, taxpayers who still haven’t registered under GST will be given an extension up till 31st August 2018 and any late penalty would be waived off.
  • Input credit for fabric allowed in the textile industry
  • Relief for hotel industry as the 28% GST would not apply on tariffs less than Rs. 7,500 even though the printed rates are more.

The post Key outcomes of the 28th GST Council Meeting appeared first on Easyaccountax.



This post first appeared on GST: A Common Man’s Guide To Its Role & Impact On Everyday Life, please read the originial post: here

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Key outcomes of the 28th GST Council Meeting

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