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TMI Blog25th MEETING OF GST COUNCIL – RECOMMENDATIONS IN CHANGE IN RATE OF TAX, AND EXEMPTIONX X X X Extracts X X X X X X X X Extracts X X X X ..... 25th MEETING OF GST COUNCIL – RECOMMENDATIONS IN CHANGE IN RATE OF TAX, AND EXEMPTION - By: - Mr. M. GOVINDARAJAN - Goods and Services Tax - GST - Dated:- 20-1-2018 - - 25 th Council Meeting The 25 th GST Council meeting was held at New Delhi on 18.01.2018. The said meeting was chaired by Shri Arun Jetley, the Hon ble Finance Minister. The decisions relating to- exemptions; changes in GST rates; ITC eligibility criteria; Rationalization of rates; were taken by the Council in the said meeting. However the said decisions will be given effect to through Gazette Notifications/circulars which shall have the force of law. Reduction in GST rate for certain goods The GST Council recommended the rate reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as detailed below- From 28% to 18%; From 28% to 12%; From 18% to 12%; From 18% to 5%; From 12% to 5%; From 12% to 5%; From 3% to 0.25%; NIL rate From 28% to 18% The Council recommended the reduction of GST rate from 28% to 18% to the following goods- Old and used motor vehicles (medium and large cars and SUVs) on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/VAT or GST paid on such vehicles has been availed by him; Buses, for use in public transport, which exclusively run on bio-fuels. From 28% to 12% The Council recommended the reduction of GST rate from 28% to 12% to the following goods- All types of old and used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motor vehicles (other than medium and large cars and SUVs)on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty/VAT or GST paid on such vehicles has been availed by him. From 18% to 12% The GST Council recommended the reduction of GST rate from 18% to 12% to the following goods- Sugar boiled confectionary; Drinking water packed in 20 litters bottles; Fertilizer grade Phosphoric acid; Bio-diesel; Bio-pesticides- Bacillus thuringiensis var, israelensis Bacillus thuringiensis var, kurstaki Bacillus thuringiensis var, galleriae Bacillus sphaericus Trichoderma viride Trichoderma harzianum Pseudomonas fluoresens Beauveriabassiana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NPV of Helicoverpaarmigera NPV of Spodopteralitura Neem based pesticides Cymbopogan Bamboo wood building joinery Drip irrigation system including laterals, sprinklers Mechanical sprayer From 18% to 5% The GST Council recommended the reduction of GST rate from 18% to 5% to the following goods- Tamarind Kernel Powder Mehendi paste in cones LPG supplied for supply to household domestic consumers by private LPG distributors Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads. The GST Council recommended the reduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f IGST rate from 18% to 5% to the following goods- Satellites and payloads and scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads. From 12% to 5% The GST Council recommended the reduction of GST rate from 12% to 5% to the following goods- Articles of straw, of esparto or of other plaiting materials; Basket ware;and Wickerwork. Velvet fabric subject to the condition that refund of unutilized input tax credit is available From 3% to 0.25% The GST Council recommended the rate reduction from 3% to 0.25% to diamonds and precious stones. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NIL GST Rate Vibhuti Parts and accessories for manufacture of hearing aids; De-oiled rice bran. Enhancement in GST rate for certain goods The GST Council recommended the rate enhancement as detailed below- From 12% to 18% - Cigarette filter rods; From NIL rate to 5% - Rice bran (other than de-oiled rice bran) Changes in compensation cess The GST Council recommended NIL rate of compensation cess from the applicable rate to the following- Motor vehicles (falling under heading 8702,as it was in excise regime) cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles. 10 13 seater ambulances, subj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to specified conditions; Old and used motor vehicles (medium and large cars and SUVs) on the margin of the supplier, subject to the condition that no input tax credit of Central Excise duty/VAT or GST paid on such vehicles has been availed of by him; All types of old and used motors (other than medium and large cars and SUVs) on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty/VAT or GST paid on such vehicles has been availed by him. Exemption from GST/IGST for certain services The GST Council recommended exemption from GST for the following services- Viability Gap Funding for a period of 3 years from the date of commencement of RCS airport from the present per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod of one year; Supply of services by way of providing information under RTI Act, 2005 ; Legal services provided to Government, local authority, Governmental Authority and Government Entity; Transportation of goods from India to a place outside India by air; (available up to 30.09.2018) Transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted service for the purpose of reversal of ITC (available up to 30.09.2018); Naval Insurance Group Fund by way of Life Insurance to personnel of Coast Guard under the Group Insurance Scheme of the Central Government retrospectively from 01.07.2017; Exemption to IGST payable under section 5(1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f IGST Act on supply of services covered by item 5(c) of Schedule II of CGST Act , to the extent of aggregate of the duties and taxes levaible under section 3(7) of Customs Tariff Act read with sections 5 and 7 of IGST Act on part of consideration declared under section 14(1) of the Customs Act, towards royalty and licence fee includible in transaction value as specified under Rule 10(c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. Enhance exemption limit of ₹ 5,000/- per month to ₹ 7500/- per month in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution. Dollar denominated se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India to a person outside India. Services by government or local authority to governmental or governmental entity, by way of lease of land and supply of land or undivided share of land by way of lease or sub lease where such supply is a part of specified composite supply of construction of flats etc., and to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the same effective rate of GST on property built on leasehold and freehold land. Pure services provided to Government entity; To expand pure services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption to include composite supply involving predominantly supply of services i.e.,up to 25% of supply of goods; Services relating to admission to, or conduct of examination provided to all educational institutions; Services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; Reinsurance services in respect of insurance schemes exempted; To increase threshold limit for exemption for all theatrical performances from ₹ 250/- to ₹ 500/- per person and to the services by way of admission to a planetarium; Services by way of fumigation in a warehouse of agricultural produce; Subscription of online educational journals/periodicals by educational i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitutions who provide degree recognized by any law from GST. Renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education up to higher secondary or equivalent. Services provided by an to FederationInternationale de Football Association and its subsidiaries directly or indirectly related to any of the events under FIFA U 20 World Cup in case the said extent is hosted by India. Government s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se. Change in rate for services Reduction in rate From 28% to 18% Admission to theme parks, water parks, joy rides, merr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y-go-rounds, go-caring and ballet. From 18% to 12%- GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works); Works contract services provided by sub contractor to the main contractor providing works contract service to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12% From 18% to 5% Tailoring service; Transportation of petroleum crude and petroleum product Common effluent treatment plants services of treatment of effluents - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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