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
Ø Classification Scheme for Services under GST
Ø List of Services under reverse charge
Ø 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 Final Formats (18/05/2017)
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