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Latest GST News
GST Council Meets
26th GST Council Meet held on 10th March 2018
Key Decisions Taken in the 26th GST Council Meet:
1. GST Return Simplification: Current GST Return filing system to continue for next 3 months
2. On the E-Way Bill Front :
-Inter-state implementation of E-way bill to be implemented from 1st April 2018
-Intra-state implementation of EWB to kick-off from 15th April 2018 in a phased manner. States to be divided into 4 lots to execute this phased rollout
3. Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) delayed till 1st July 2018
4. TDS & TCS applicability postponed until 30th June 2018
5. Tax exemption for Exporters extended by 6 months till 1st October 2018 & the Council has advised the GSTN to expedite the export refund claims
6. No GST rate changes were announced
Read 26th GST Council meet page to know more about what was expected of this meet
25th GST Council Meet held on 18th Jan 2018
Key Decisions Taken in the 25th GST Council Meet:
1. Late fee reduction:
- For GSTR-1, GSTR-5, GSTR-5A and GSTR-6 the late fees is reduced to Rs. 50 per day
- In case of Nil return filed for GSTR-1, GSTR-5, GSTR-5A late fee is reduced to Rs. 20 per day
2. Cancellation of registration by voluntary registrants can be applied before the expiry of 1 year from the date of registration
3.Cancellation of registration (REG – 29) by migrated taxpayers extended till 31st March 2018.
4. On successful implementation of e-Way bills, the E-way bill portal to be shifted to ewaybillgst.gov.in
5. Certain modification to e-way bill rules to be notified soon.
6. Recommendations made by Handicraft committee has been accepted by the council: The rates are to be worked out later.
7. GST Rates for 29 Goods and 53 Services have been reduced. These rates will come into effect from 25th January 2018.
GST Rate Changes for Goods:
Nil Rated Goods:
- Parts and accessories for the manufacture of hearing aids.
- De-oiled rice bran
Rates reduced from 28% to 18%
- Old and used motor vehicles [medium and large cars and SUVs] with a condition that No ITC is availed
- Public transport Buses that run on Biofuel
Rates reduced from 28% to 12%
For Old and used motor vehicles [other than medium and large cars and SUVs] with a condition that No ITC is availed
Rates reduced from 18% to 12%
- Sugar boiled Confectionery
- Drinking water packed in 20 litres bottles
- Drip irrigation system including laterals, sprinklers
- Mechanical Sprayer
- Certain listed Bio-pesticides (12 in nos)
- Fertilizer grade Phosphoric acid
- Bamboo wood building joinery
Rate reduced from 18% to 5%
- LPG supplied to Household Domestic Consumers
- Raw materials and Consumables needed for Launch vehicles, Satellites and Payloads (Both CGST and IGST Rates)
- Tamarind Kernel Powder
- Mehendi paste in cones
Rates reduced from 12% to 5%
- Articles of straw, of esparto or of other plaiting materials
- Velvet fabric [with a condition that no refund is claimed on ITC]
Rates reduced from 3% to 0.25%
Diamonds and precious stones
GST Rate increased from 12% to 18%
Cigarette filter rods
Rate increased from 0% to 5%
Rice bran (other than de-oiled rice bran)
Compensation cess is reduced to 0% for following motor vehicles :
- Old and used motor vehicles [medium and large cars and SUVs]with a condition that No ITC is availed
- Old and used motor vehicles [other than medium and large cars and SUVs] with a condition that No ITC is availed
- Vehicle that is cleared as an ambulance (having all accessories necessary in ambulance)
- 10-13 seater Buses and ambulances subject to specified conditions
GST Rate Changes for Services:
GST newly applicable on following:
- GST Rate at 5% on small housekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, without availing ITC
- GST Rate at 28% on actionable claim in the form of chance to win in betting and gambling including horse racing
Rate reduced from 28% to 18%
Services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-karting and ballet
Rate reduced from 18% to 12%
1. Transportation of petroleum crude and petroleum products with ITC Credit.
2. Metro and monorail projects (construction, erection, commissioning or installation of original works)
3. Works Contract Services by Sub-contractor to the Main contractor under the following scenario:
Where the main contractor provides WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity at the rate of 12%
Note: Similarly, GST Rate for Sub-contract services to the main contractor shall attract 5% where the Main contractor is providing services to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity at the rate of 5%
4. Common Effluent Treatment Plants services for treatment of effluents
5. Mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods
Rate reduced from 18% to 5%
- Tailoring Services
- Transportation of petroleum crude and petroleum products without ITC Credit.
- Job-work services for manufacture of leather goods(Chapter 42) and footwear (Chapter 64)
Following Services are exempted :
- Providing information under RTI Act, 2005 from GST.
- Legal services provided to Government, Local Authority, Governmental Authority and Government Entity.
- Transportation of goods from India to a place outside India by air or sea until 30th September 2018:
- Life Insurance to personnel of Coast Guard (under the Group Insurance Scheme of the Central Government) by the Naval Insurance Group Fund, retrospectively w.e.f. 1.7.2017
- Dollar-denominated services provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India
- Pure services provided to Government entity by a Panchayat/ Municipality. Composite supply involving predominantly supply of services (i.e. up to 25% of the supply of goods) is also exempted.
- Lease of land:
- By government or local authority to governmental authority or government entity
- Supply as a part of specified composite supply of construction of flats, etc
- Admission to, or conduct of examination provided to all educational institutions including any service of conducting entrance examinations on collection of entrance fees
- Reinsurance services in respect of following insurance schemes :
- General insurance business provided under schemes such as Pradhan Mantri Suraksha Bima Yojna and others listed in Notification 12/2017-CGST Rate
- Life insurance business provided under schemes such as Pradhan Mantri Jan Dhan Yojana and others listed in Notification 12/2017-CGST Rate
- Services by way of fumigation in a warehouse of agricultural produce
- Services of admission to planetarium where consideration charged is below Rs.500
- Subscription of online educational journals/periodicals by educational institutions who provide degree recognized by any law
- Renting of transport vehicles to a person providing services of transportation to an educational institution (students, faculty, and staff) providing education upto higher secondary or equivalent.
- Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.
Changes in Exemption limits in the following cases:
- The exemption limit of Rs 5,000 per month per member in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution is enhanced to Rs 7500/-.
- The exemption limit of the amount of cover of Rs. 50,000 enhanced to Rs. 2 lakhs in respect of services of life insurance business provided under life microinsurance product approved by IRDAI
- The exemption limit of Rs.250 for services with respect to all the theatrical performances like Music, Dance, Drama, Orchestra, Folk or Classical Arts and all other such activities in any Indian language in theatre increased 500 per person
Others Recommendations to Note:
- To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service
- To extend the period of Viability Gap Funding (VGF) with respect to the construction of RCS Airports from 1 to 3 years from the date of commencement of RCS Udan Airport.
- Proposal to not to include the Value of deposits, loans or advances on which interest or discount is earned in the Value of exempt supply under sub-section (2) of section 17 (Not applicable to Banking company, Financial Institutions, NBFC extending deposits, loans or advances)
- To defer the liability to pay GST in case of TDR against consideration in the form of construction service and on construction service against consideration in the form of TDR to the time when the possession or right in the property is transferred to the landowner by entering into a conveyance deed or similar instrument (eg. allotment letter). No deferment in point of taxation in respect of cash component.
- Changes in Valuation of Lottery, Betting and gambling Services:
- To insert a provision that the value of lottery shall be 100/112 or 100/128 of the price of lottery ticket earlier notified.
- To insert a provision that the Value of supply of Betting & Gambling shall be 100 % of the face value of the bet or the amount paid into the totalizator.
- Recommendations made regarding Reverse Charge Mechanism
- To include Renting of Immovable property by government or local authority to a registered person under reverse Charge while renting of immovable property by government or local authority to unregistered person shall continue under forward charge
- To define insurance agent in the reverse charge notification to have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938, so that corporate agents get excluded from reverse charge
GST Rate Clarifications are given for the following goods:
1. GST at 18% to be charged only on the net quantity of “Poly Butylene Feed Stock & Liquefied Petroleum Gas” retained for the manufacture of “Poly Isobutylene or Propylene or di-butyl para cresol” subject to specified conditions.
2. With Respect to Rail coach industry:
- GST at 5% on Chapter 86 Goods (with condition that no Refund of unutilized ITC)
- GST to attract at applicable rates for the rest of the Goods supplies to Indian Railways
3. With Respect to Coal Rejects falling under HSN Code 2701:
- GST at 5%
- Compensation Cess at Rs 400 Per Metric Ton
24th GST Council Meet held on 16th December 2017:
1. E way bill rules will be rolled out on a trial basis from 16th Jan 2018
2. The e-way bill for inter-state transport will be implemented in India from 1st February 2018
3. The states can opt to follow the e-way bill system for intra-state transport anytime between 1st Feb to 1st June 2018
4. From 1st June 2018 e-way bill rules for intra-state transport will uniformly apply to all states.
23rd GST Council Meet to be held on 10th Nov 2017
Recent Notification and Circulars
CGST Amendment in 2018:
|14(View PDF)||23-3-2018||3rd amendment made to CGST Rules, 2018 ( Rules on Job-work amended, Rule 138D amended)|
|12(View PDF)||7-3-2018||2nd amendment made to CGST Rules, 2018 (TRAN-2 date extended to 31st March 2018, E-Way bill rules amended, Format for Declarations in RFD-01 & RFD-01A changed)|
|03(ViewPDF)||23-1-2018||1st amendment made to CGST Rules, 2018(Rates for Composition scheme clarified, E-Way bill rules amended, Rule 55A newly added where Invoice is to be carried for transport of e-way bills, Changes to Declarations made in RFD-01/RFD-01A)|
Central Tax Notifications in 2018 :
|20(View PDF)||28-3-2018||Due date for filing of RFD-10 to claim the refund of tax by UN agencies & notified others extended to 18 months from last date of each quarter|
|19(View PDF)||28-3-2018||Due date for GSTR-6 filing for July 2017 to April 2018 is extended to 31st May 2018|
|18(View PDF)||28-3-2018||Due dates for Monthly filing of GSTR-1 for April 2018 is 31st May 2018, May 2018 is 10th June 2018 and June 2018 is 10th July 2018|
|17(View PDF)||28-3-2018||Due dates for quarterly filing of GSTR-1 for coming Quarter April to June 2018 is fixed as 31st July 2018|
|16(View PDF)||23-3-2018||Due dates for filing FORM GSTR-3B for the months of April to June, 2018|
|15(View PDF)||23-3-2018||Inter-state implementation of E-Way Bill Rules shall come into force from 1st April 2018|
|13(View PDF)||7-3-2018||The earlier reduced Late fees on delayed filing of GSTR-5A now stands cancelled. Check the notification|
|11(View PDF)||2-2-2018||Inter-State E-Way bill applicability from 1st February 2018 is postponed|
|08(View PDF)||23-1-2018||Extension of date for filing the return in FORM GSTR-6 for months July 2018 to February 2018 till 31st March 2018|
|04, 05, 06 & 07
|23-1-2018||Reduction of late fee in case of delayed filing of FORM GSTR-6, GSTR-5A, GSTR-5 & GSTR-1 to Rs 50 per day( Rs 20 for NIL returns)|
|02(View PDF)||2-1-2018||Due date for filing of FORM GSTR-3B for month of December, 2017 extended till 22.01.2018.|
|01 (View PDF)||1-1-2018||GST Rate for Manufacturers under Composition Scheme reduced to 1%. Check the notification for further details.|
CGST Circulars in 2018:
|40(View PDF)||6-4-2018||Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports|
|39(View PDF)||3-4-2018||relaxation to selected TRAN-1 filers and Setting up of IT grievance redressal committee to fix tech issues on GST portal|
|38(View PDF)||26-3-2018||Clarifications on issues related to Job Work|
|37(View PDF)||15-3-2018||Clarifications on exports related refund issues|
|36(View PDF)||13-3-2018||How does the processing of refund to UIN Entities happen|
|35(View PDF)||5-3-2018||Clarification regarding taxable services provided by the member of the Joint Venture(JV) to the JV and vice versa and inter se between the members of the JV|
|34(View PDF)||1-3-2018||Clarification regarding GST in respect of certain services.|
|33(View PDF)||23-2-2018||Directions under Section 168 of the CGST Act regarding non-transition of CENVAT credit under section 140 of CGST Act or non-utilization thereof in certain cases|
|32(View PDF)||12-2-2018||Clarifications regarding GST in respect of certain services as decided in 25th GST Council meeting.|
|31(View PDF)||9-2-2018||Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017.|
|30(View PDF)||25-1-2018||Clarification regarding supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86.|
|29(View PDF)||25-1-2018||Clarification regarding applicability of GST on Polybutylene feedstock and Liquefied Petroleum Gas retained for the manufacture of Poly Iso Butylene and Propylene or Di-butyl para Cresol.|
|28(View PDF)||8-1-2018||GST on College Hostel Mess Fees|
|27 (View PDF)||4-1-2018||GST on accommodation services, betting, gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc.|
CGST Orders issued in 2018
|01(View PDF)||31-3-2018||Clarification regarding GST on catering services provided on trains|
|01(View PDF)||28-3-2018||Extension of due date of TRAN-2 to 30th June 2018|
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For Further Information & Reading:
- All about E-Way Bill: Rules and Generation
- Private Limited Company Registration
- GST Council
- HSN Code List & GST Rate Finder
- GST Registration
- Know about gst.gov.in