Major changes announced on 23rd GST council meeting

On 23rd meeting of GST council Finance minister Arun Jaitley announced some major changes in tax rates which provide some relief to tax payers.
GST council also reduced GST tax rates for service sector (Restaurant, Handicraft & Aviation) to simplify taxation process and promote ease of doing business.

Relaxation for Service Providers:

Service providers within Rs.20 Lakh turnover are free from GST registration. This is also applicable on those who provide inter-state services and through any e-commerce portal.

There is no good news from this 23rd meeting for restaurants. Restaurants can’t avail any input tax credit with remaining tax rate of 5%.

Services export to Nepal and Bhutan are exempt from GST charges also they can avail input tax credit facility.

Late GSTR filing fee:

Charge for late GSTR filing has been reduced from Rs.200 to Rs.20 per day.
GST council trim rates on 178 items of 28% category to 18%. Here is the list of goods those diminish from 28% to 18%:

  1. Chewing Gum, White Chocolate (1704)
  2. Cocoa Butter, Fat and Oil (1804)
  3. Plain Cocoa Powder with no addition of sugar (1805)
  4. Chocolates used for cooking which contains cocoa (1806)
  5. Malt Extract and food preparations of flour, groats, starch (1901)
  6. Chewing Gum, Waffles and wafers contains chocolate (1905)
  7. Extracts of coffee (2101)
  8. Non-alcoholic beverages (2202)
  9. Marble (2515)
  10. Granite (2516)
  11. Perfumes & Toilet waters (3303)
  12. Beauty & make up preparations (3304)
  13. Hair care preparations other than hair oil (3305)
  14. Dental care preparation (3306)
  15. Shaving and bath preparations, deodorants (3307)
  16. Skin wash preparations in the (3401)
  17. Washing and cleaning preparations (3402)
  18. Footwear, furniture, floor polishes and creams (3405)
  19. Explosives (3602)
  20. Fireworks except pyrotechnic articles (3604)
  21. Articles of combustible materials (3606)
  22. Gum inhibitors, oxidation inhibitors and other prepared additives for mineral oils (3811)
  23. Fire extinguisher preparations (3813)
  24. Thinners, paint removers (3814)
  25. Anti-freezing preparations (3819)
  26. Plastic Floor coverings, plastic wall ceilings (3918)
  27. Plastic bath preparations (3922)
  28. Articles of plastics(3926)
  29. Rubber tubes (4013)
  30. Articles of vulcanised rubber (4016)
  31. Hard rubber (4017)
  32. Travelling bags, suit cases, musical instrument cases, jewellery boxes, hand bags, shopping bags of artificial plastic material (4202)
  33. Articles of apparel & clothing accessories of leather or its composition (4203)
  34. Plywood (4412)
  35. Wooden Painting frames, mirrors and photographs (4414)
  36. Paving blocks made with wood and parts of domestic decorative articles (4421)
  37. Wall coverings (4814)
  38. Artificial flowers (6702)
  39. Eyebrows, eyelashes, human hair articles (6704)
  40. All goods of Marble and Granite (6802)
  41. Panels, boards, tiles, blocks (6808)
  42. Articles of cement, concrete (6810)
  43. Friction materials (6813)
  44. Articles of stone & other mineral substances (6815)
  45. Blocks and tiles of siliceous fossil meals (6901)
  46. Ceramic flooring blocks (6904)
  47. Ceramic pipes, pipe fittings, conduits (6906)
  48. Ceramic sinks, wash basins, baths (6910)
  49. Safety glass (7007)
  50. Glass mirrors (7009)
  51. Glass articles like slabs, bricks, tiles (7016)
  52. Stoves other than LPG, cookers, barbecues (7321)
  53. Sanitary ware of iron & steel (7324)
  54. Doors, windows (7610)
  55. Articles of cutlery (8214)
  56. Automatic goods-vending machines (8476)
  57. Single loudspeakers (8518)
  58. Musical instruments (9208)
  59. Parts of musical boxes (9209)
  60. Articles of bedding & similar furnishing (9404)
  61. Fittings of lamps & lighting (9405)
  62. Articles of entertainment (9505)
  63. Cigarette lighters and other lighters (9613)
  64. Vacuum vessels and flasks (9617)
  65. Dummies of tailors & other dummies (9618)

List of Goods to be included in 12% from 28%

  1. Wet grinder having stone as grinder (8509)
  2. Armoured fighting vehicles (8710)

List of Goods to be included in 12% from 18%

  1. Condensed milk (0402)
  2. All goods with added flavouring & colours and sugar cubes (1701)
  3. Pasta, spaghetti, macaroni, noodles, lasagne, ravioli (1902)
  4. Curry Paste (2103)
  5. Mayonnaise & salad (2103)
  6. Foods for diabetics (2106)
  7. Printing ink, writing or drawing ink (3215)
  8. Hand bags and shopping bags of cotton (4202)
  9. Hand bags and shopping bags of jute (4202)
  10. Raw cotton supplied by agriculturist to a registered person (5201)
  11. Hats(Knitted / Crocheted) (6505)
  12. Fly ash fabrics (6815)
  13. Sewing machine parts (8452)
  14. Frames and mountings of spectacles (9003)

List of Goods to be included in 5% from 18%

  1. Flour of potatoes put up in unit container (1105)
  2. Puffed rice chikki, Peanut chikki, Sesame chikki, Elaichidana, Lukumdana (1704)
  3. Chutney powder (2106)
  4. Fly ash (2621)
  5. Aircraft parts (40, 84, 94)
  6. Scientific and technical instruments, Computer software

List of Goods to be included in 5% from 12%

  1. All goods except fresh or chilled (0202/0203/0204/0205/0206/0207/0208/0209/0210/0504)
  2. Desiccated coconut (0801)
  3. Idli, dosa batter (2106)
  4. Prepared leather after crusting (4112)
  5. Further prepared leather after crusting (4113)
  6. Chamois (4114)
  7. Composition leather with a basis of leather or leather fiber (4115)
  8. Coir, Cordage and ropes (5607)
  9. Twine net, cordage or rope (5608)
  10. Coir products (5609)
  11. Narrow woven fabrics (5806)
  12. Worn clothing (6309)
  13. Fly ash fabrics (6815)
  14. Fishing books (9507)

List of exempt Goods

  1. All goods except fresh or chilled (0303/0304/0305/0306/0307/0308)
  2. Vegetables cooked or uncooked in boiling water (0710)
  3. Manioc, arrowroot, sweet potatoes (0714)
  4. Dried makhana (08)
  5. Meals, powder, flakes, granules
  6. Guar meal (1106)
  7. Hop cones neither ground nor powdered (1210)
  8. Coconut shell (1404)
  9. Khandsari sugar (1701)
  10. Lac bangles (7113)

In 23rd GST council meeting changes made not only in goods tax slabs but in services also. Here are some changes made in composition scheme mentioned below:

  • Threshold limit for registration under composition scheme increased to Rs.2 Crore from the present limit of Rs.1 Crore (Later it will be increased to Rs.1.5 Crore)
  • Traders and manufacturers now have to pay a uniform tax of 1% under composition scheme and no changes for restaurant sector.
  • Composition tax payers can supply services upto Rs.5 Lakh per annum.
  • Due date for composition returns, GSTR-4 extended to 24th December.

Revised Dates of GSTR filing:

  1. GSTR-1 and GSTR-3B dates extended till march 2018
  2. Companies with turnover less than Rs.1.5 Crore need to file GSTR-1 quarterly
  3. Companies with turnover more than Rs.1.5 Crore need to file GSTR-1 monthly

Business entities are facing issues while registering and filing for GST due to its little bit complicated process. GST became nightmare for common people due to high tax slabs price of daily use and other important items hiked almost half of the previous price. GST council made lots of changes for easy and simple taxation.

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