GST Council among the thirty-first meeting held on 22 December 2018 at New Delhi took following choices referring to changes in GST rates and clarification on the product. the choices created by the GST Council are conferred during this note for simple understanding. the same would be impacted to through Gazette notifications/ circulars that shall have the force of law.
1. GST rate reduction on goods which were attracting GST rate of 28% :
A. 28% to 18%
- Monitors and TVs of up to screen size of 32 inches.
- Re-treaded or used pneumatic tires of rubber.
- Pulleys, transmission shafts, and cranks, gearboxes etc., falling under HS Code 8483.
- Power banks of lithium-ion batteries. Lithium-ion batteries are already at 18th. this can bring parity in GST rate of power bank and lithium ion battery.
- Digital cameras and video camera recorders.
- Video game consoles and different games and sports requisites falling under HS code 9504.
B. 28% to 5%
- Parts and accessories for the carriages for disabled persons.
2. GST rate reduction on other goods,-
A. 18% to 12%
- Articles of natural cork
- Cork roughly squared or debugged
- Agglomerated cork
B. 18% to 5%
C. 12% to 5%
- Walking Stick
- Fly ash Blocks
- Natural Cork
D. 12% to Nil:
E. 5% to Nil
- Vegetables, (uncooked or boiled by steaming or boiling in water), frozen, branded and place during a unit container.
- Vegetable provisionally preserved (for example by sulfur dioxide gas, in brine, in sulfur water or in alternative preservative solutions), however unsuitable in this state for immediate consumption.
3. GST on Solar Power Generating Plant and other Renewable Energy Plant
- GST @5% has been prescribed on renewable energy devices and elements for their manufacture (biogas plant/solar power based mostly device, solar power generating system etc).
- Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for the solar power plant.
- To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.
Reduction in GST rates/exemptions on services:
- GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets up to Rs. 100 from 18% to 12%.
- GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%.
- Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
- Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the govt. of India below bilateral arrangements, shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5th with ITC of input services).
GST Refund related changes affecting Refund claim in Form GST RFD-01A
- A scheme of one authority for disbursement of the refund quantity sanctioned by the Centre or the State tax authorities would be enforced on a pilot basis.
- Shortly new functionality shall be updated on GST portal so the supporting documents/invoices in reference to the refund claim in type GST RFD-01A will be uploaded electronically.
- In case of applications for refund in form GST RFD-01A, that are generated on the common portal before the higher than described operation, and that haven’t been submitted within the jurisdictional tax office within sixty days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the same refund applications. If the applications aren’t submitted within 15 days of the date of the e-mail, the said refund applications shall be summarily rejected, and also the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.
- Following listed additional type of refunds shall now be made available through Form GST RFD-01A
- Refund due on account of any assessment /provisional assessment/ appeal/ any other order.
- Tax paid on an intra-state supply and which is held to be inter-state supply and vice-versa.
- Excess tax payment.
- Any other refund.
The Important point for filing of an annual return
- It is mandatory to file form GSTR-1, form GSTR-3B associated form GSTR-4 before filing an annual come back in form GSTR-9, GSTR-9A and form GSTR-9C.
- HSN code of only those inward provides has to be declared whose value is 10th or additional of the entire value of inward supplies.
- While the filing of the annual return, if any extra payment is required to be made, the same can be done only in money through form GST DRC-03.
- ITC can’t be availed through form GSTR-9 and GSTR-9C.
- All the invoices pertaining to the previous FY (irrespective of the month in which such invoices is reported in form GSTR-1) would be auto-populated in Table 8A of form GSTR-9.
- Value of ‘non-GST supply’ shall additionally include the value of ‘no supply’ and may be according in Table 5D, 5E, and 5F of form GSTR-9.
- Verification of taxpayer who is uploading reconciliation statement would be included in form GSTR-9C.
Reverse Charge Mechanism
- Parliament and State legislatures shall be the identical tax treatment with respect to the payment of tax under RCM as accessible to the Central and state government.
- Security service provided to a registered person shall be put under RCM. the same is not applicable to Government Departments that have taken registration for TDS and composition scheme dealer.
- Services provided by an unregistered Business helper to a bank and agent of Business correspondent to a Business correspondent shall be put under RCM.
- Security service provided to a registered person shall be put under RCM. The same is not applicable to Government Departments which have taken registration for TDS and composition scheme dealer.
- Services provided by unregistered Business Facilitator to a bank and agent of Business correspondent to a Business correspondent shall be put under RCM.
Migration to GST
One more window for completion of the migration process is being allowed. Relevant due dates are as under
|The Taxpayer who did not file the complete form GST REG-26 but who has received only a provisional ID (PID)till 31-12-2017
|Return filing due date of the above-referred taxpayer in form GSTR-3B for the period July 2017 to February 2019 and quarter July 2017 to December,20 18.
Updates with respect to ITC
ITC in relation to the invoices issued by the supplier during FY 2017-2018 can be availed by the recipient till the due date of furnishing of Form GSTR-3B for the month of March 2019.
Other Important Update
- Scheme for single cash ledger for every tax head would be introduced.
- The new return classification system shall be introduced on a trial basis from first April 2019 and therefore the same would be created mandatory from first July 2019.
- Late fee waiver just in case of type GSTR-1, GSTR-3B and GSTR-4 for the months/quarters July 2017 to December 2018 being filed when 22nd December 2018 however on or before 31st March 2019.
- Update within the system will be made in order that payer won’t be ready to the generate-way bill just in case he has not filed the returns for the two consecutive tax amount.
- In principle approval to the subsequent amendments are the GST Acts.
- Creation of a Centralised legal proceeding Authority for an Advance Ruling (AAAR) to deal with cases of conflicting selections by 2 or a lot of State legal proceeding Advance Ruling Authorities on the identical issue.
- Amendment of section 50 of the CGST Act to produce the interest should be charged only on the online liabilities the payer when taking under consideration the admissible input decrease, i.e. interest would be a leviable only on the quantity due through the electronic cash ledger.
Relevant Press release for Rate Change
- Decisions are taken by the GST Council in the 31st meeting held regarding GST rate on services.
- Recommendations made during the 31st Meeting of the GST Council held on 22nd December 2018 (New Delhi)-Rate changes.
- Recommendations created during 31st Meeting of the GST Council held regarding Rate changes and clarification in Goods.