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GST Council – Meeting on 19/05/2017

Fitment of Services in Tax Slab Rates

The GST Council has in the meeting on May 19, 2017 finalized the rate structure for Services in 4 slabs - 5, 12, 18 and 28% in line with those applicable to goods.

Here are the highlights of the rate structure for services

Luxury services taxed @28% - covers Cinemas, 5 star Hotels & Restaurants, Hotels charging rent more than Rs.5,000/- per day, betting.

  Services under 18% - Banking , Financial Services, A/C Restaurants serving liquor, Hotels and lodges with tariff of Rs 2,500-5,000

 Services under 12 % - Non A/C restaurants not serving liquor, business class Economy class air travel, Hotels and lodges with tariff of Rs 1,500-2,500

 Services under 5% - Transport services (Railways, air transport), cab aggregators Economy class air travel

 Health care and Education services, Hotels and lodges with tariff below Rs 1,000 are exempted from tax

The next meeting of the GST Council is scheduled on 03/06/2017 to deliberate and decide on remaining issues i.e rate fitment for undecided category of goods / services and finalising rules on return and transition after legal vetting.

GST Rate Schedule for Services

CBEC has made available the following

Ř  Classification Scheme for Services under GST

Ř  List of Services under reverse charge

Ř  Schedule of GST rates for services and list services exempted

It is stated that the fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28% as listed below.

The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are being communicated for general information and will be given effect to through gazette notifications which shall have force of law.

Click to download  Classification Scheme for Services under GST , List of Services under reverse charge,   Schedule of GST rates for services and list services exempted.

Date : May 20, 2017

GST Council – Meeting on 18/05/2017

GST Rate Schedule for Goods

CBEC has made available HSN Chapter wise GST Rate Schedule for Goods and also the list of goods on which Cess would be levied.

It is noted that the information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes.

GST rates for the following goods would be decided on 19th May 2017.

1) Biri wrapper leaves (tendu patta) Ch. 14
2) Biscuits Ch.19

3)

Biris Ch. 24
4) Textiles Ch. 50 to 63
5) Footwear Ch. 64
6) Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin Ch. 71
7) Power driven Agricultural, horticultural, forestry, poultry keeping or bee-keeping machinery, Harvesting or threshing machinery, machines for cleaning, sorting or grading, machinery used in milling industry and parts thereof 8432, 8433, 8436 and 8437

Click to download GST Rate Schedule for Goods and List of Goods liable for cess

7 GST Rules approved

GST Final Rules (18/05/2017)

   GST Composition Rules

   GST Invoice Rules

   GST Input Tax Credit Rules

   GST Payment Rules

  GST Refund Rules

   GST Registration Rules

   GST Valuation Rules

GST Final Formats (18/05/2017)

   GST Composition Formats

   GST Registration Formats

   GST Input Tax Credit Formats

   GST Payment Formats

  GST Refund Formats

Date : May 19, 2017

Fitment of Goods in Tax Slab Rates

The GST Council has in the meeting on May 18, 2017 approved seven Rules except the Transition Rules and Return Rules. It is stated that the legal Committee of the GST Council requires time to vet the Rules.

 

Briefing the press, the Finance Minister Sri.Jaitely stated that the discussions focused on rate of tax on goods and the categorization of the goods. Rate of tax on Services would be discussed tomorrow.

Here are the snippets from the press briefing

 

   List of Exempted Goods expected to be finalized tomorrow. Cereals and Milk would be exempt.

 

   Broadly 14% of the goods fitted into 5% slab, 17% under 12% slab, 43% under 18% slab and 19% under 28%. This means 7% of the goods would be exempted.

 

   Fitment done for 1211 items barring 6 categories.

 

   Rates of tax on Gold and Beedi to be discussed tomorrow.

 

   Edible Oil, Sugar, Coffee and Tea (except instant coffee and tea) classified at 5%.

 

   Coal to be taxed at 5%

 

   Food grains to be cheaper under GST.

 

It is expected that the schedule of Goods and Services would be finalized tomorrow.

 

In the absence of the complete details of fitment of Goods and Services in different slabs, it is difficult hazard a guess on whether it would be Revenue Neutral to the consumers

 

Date : May 18, 2017

GSTN - Pilot project to test filing of returns

 

According to press reports, GSTN intends to carry out pilot testing of the filing of returns using 4000 assessees and that the result of the test run would be presented to the GST Council scheduled to meet on 19th and 20th May 2017.

 

Image courtesy: Extract from Preview file of GSTN available at http://tutorial.gst.gov.in/documents/prototypes.pdf

GST Migration temporarily closed

According to the announcement in www.gst.gov.in, the enrolment process which began on November 8, 2016 is closed with effect from May 1,2017 and that data of all assessees who have signed in would be migrated to the GST system. It is stated that more than 60 lakh assessees have enrolled.

 

For the benefit of those who have not migrated, the enrolment window will open at a later date.

Date : May 03, 2017