37th GST Council meeting: After restructuring Corporate tax structure now a big relief for GST Taxpayers.

37th GST Council meeting_ After restructuring Corporate tax structure now a big relief for GST Taxpayers.

GST Rate Reduced for goods.

Product Previous Rate Current Rate Remarks
Slide Fasteners 18% 12% Fasteners were taxed @28% when used in auto parts & 18% otherwise. Because of which auto industry was affected.
Wet Grinders 12% 5% This will ultimately bring relief to the consumers and promote domestic manufacturers for the same.
Marine Fuels 18% 5% To promote the marine industry, businessman & fishing industry.
Dried Tamarind Plates & Cups (Made of Leaves/flowers/bark) 5% NIL To promote products made of bio-degradable material To help small businessman , which are reeling under the pressure of economic slowdown
Semi-precious stone 3% 0.25% To push exports of precious & semi-precious stones, rate cut is announced
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GST Rate Increased for goods.

Product Previous Rate Current Rate Remarks
Goods falling under chapter 86 of tariff 5% 12% To address the issue of accumulated Input tax credit (ITC)
Caffeinated beverages 18% 28% Additional: 12%cess (Restriction on refund of compensation cess on tobacco)

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GST Rate Reduced for Services.

Sector Previous rate Current Rate Remarks
Hospitality Less than 1000 = 5% 1000 – 2500 = 12% 2501-7500 = 18% Above 7501 = 28% Less than 1000 = NIL 1000 – 7500 = 12% Above 7501 = 18% Achieve the targeted expansion and promote tourism in India.
Job Work Service Machine = 18% Diamonds = 5% Machine = 12% Diamonds = 1.5% This will Provide impetus to the sector, help upscale manufacturing and push exports of Gems & Jewellery.
Outdoor catering 18% 5% Assessed with a turnover of INR 2 Crore. Need no file return for coming 2 years
Warehousing Exempt services cereals, pulses, fruits, nuts, vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibers such as cotton, flax, jute, etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee, and tea.
Transportation Increase the conditional exemption of GST on export freight.
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Some law & procedural changes were also announced during the 37th GST Council Meeting in Goa.

  1. Annual returns for Micro, Small, Medium Enterprises (MSME) for FY 2017-18 and FY 2018-19 are relaxed.
  1. FORM GSTR-9A: waiver of filing to those who have opted for composition scheme.
  2. FORM GSTR-9: For those having a turnover of more than 2 Cr (optional).
  3. Committee of Officers to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.

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  1. The last date for filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal has been extended.
  1. A new system of return filing now to be introduced from April 2020, in order to give ample time to taxpayers as well as the system to adapt.
  1. Amendments in the CGST Act, UTGST Act, and the corresponding SGST Acts in view of the creation of UTs of Jammu & Kashmir and Ladakh.
  1. Integrated refund system with disbursal by the single authority to be introduced from 24th September 2019.
  1. In principle decision to link Aadhar with the registration of taxpayers under GST and examine the possibility of making Aadhar mandatory for claiming refunds.
  1. In order to tackle the menace of fake invoices and fraudulent refunds, in-principle decision to prescribe reasonable restrictions on the passing of credit by risky taxpayers including risky new taxpayers.

Also, Read

Reference

Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS

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Author: gstregistrationo

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