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12 June, 2017

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GST Changes by 16th GST Council Meet - Quick Glance Compilation

GST Changes by 16th GST Council Meet dated 11.6.2017

Ø Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017
Ø Revised Threshold for Composition Levy Enhanced
Ø IGST Exemption under GST
Ø Revised GST Rates for Certain Goods

A)   Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017

1. In the list of service tax exemptions to be continued in GST as approved by the GST Council, after S.No. 83, the following shall be inserted –

Sl. No.
Proposal/ request
84.
Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution
85.
Services provided to the Government under any insurance scheme for which total premium is paid by Government
86.
Services provided to the Government under any training programme for which total expenditure is borne by the Government

2. In the schedule of GST Rates for Services as approved by the GST Council, after S.No. 13, the following shall be inserted –

Sl. No. Description of Services GST Rate
13A Services by way of job work in relation to –
a) Textile yarns (other than man-made fibre/filament) & textile fabrics
b) Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN
c) Printing of books (including braille books), journals and periodicals
d) Processing of leather
5% with
Full ITC
27A Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is ₹ 100 or less. 18% with Full ITC

3. Exemption from registration under section 23(2) of the CGST Act 2017 of –
1. Individual advocates (including senior advocates)
2. Individual sponsorship service providers (including players)


2)    REVISED THRESHOLD LIMIT FOR COMPOSITION LEVY

Earlier the limit to opt for composition scheme under GST was when eligible registered person, whose aggregate turnover in the preceding financial year did not exceed 50 lakh. The GST Council, in its meeting held on 11th June, 2017, has recommended increase in the aforesaid turnover limit for Composition Levy for CGST and SGST purposes from 50 lakh to 75 lakh in respect of all eligible registered persons, referred to in the aforesaid subsection. However, whether the same increased turnover limit for Composition levy will apply in case of Special Category States or not will be decided in the next GST Council meeting.

3)    IGST Exemption under GST

I. Bilateral Commitments – Imports under Agreement between India and Pakistan /Bangladesh for regulation of Bus Service

S. No.
Notification Gist of the notification
1.
No.4/99-Customs, dated 08.01.1999 1. Passenger bus; and
2. Spares, fuel and consumables for the passenger bus imported under the Agreement between India and Pakistan for regulation of Bus Service between New Delhi and Lahore or under the Agreement between India and Bangladesh for regulation of Bus Service between Calcutta and Dhaka.
These imports will be exempt from IGST.

II. Technical Exemptions for Temporary import/Re-Import

S. No.
Notification Gist of the notification
1.
No.40/2015-Customs, dated 21.07.2015 Import of Diamonds for Certification / Grading & Re-export in terms of Para 4.42 of the FTP 2015-20, by the agencies mentioned in Para 4.42 of FTP, without payment of all Customs duties after executing bond with Customs.
These imports will be exempt from IGST.
2.
No.9/2012-Customs, dated 09.03.2012 An exporter (with annual export turnover of ₹ 5 crore for each of the last three years) may export cut & polished diamonds (each of 0.25 carat or above) to specified testing agencies/laboratories abroad [as mentioned under paragraph 4.74 of the Handbook of Procedures] for testing.
On their re-import [within 3 months from the date of export] such cut and polished diamonds are exempt from customs duties [BCD, CVD and SAD].
These imports will be exempt from IGST.
3.
No exemption at present Inter-state movement of any mode of conveyance between distinct persons as defined under section 25(4) of the Central Goods and Services Tax Act, 2017, including
i. Trains
ii. Buses
iii. Trucks
iv. Tankers
v. Trailers
vi. Vessels
vii. Containers
a) Carrying goods or passengers or both; or
b) For repairs and maintenance,
[except in cases where such movement is is for further supply o fthe same conveyance]
shall be treated neither as a supply of goods or supply of service and therefore, not be leviable to IGST.
However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and maintenance done.

4)    REVISED GST RATE FOR CERTAIN GOODS

As per discussions in the 16th GST Council Meeting held on 11th June, 2017]

S. No.
Chapter / Heading / Subheading / Tariff item
Description of goods
Earlier GST rate approved by the GST Council
Revised  GST Rate approved by the GST Council
1.  
0506, 0507 90
Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc.
5%
0%
2.  
0801
Cashew nut
12%
5%
3.  
0801
Cashew nut in shell
12%
5%  [under reverse charge]
4.  
0806
Raisin
12%
5%
5.  
1104
Cereal grains hulled
5%
0%
6.  
1702
Palmyra jaggery
18%
0%
7.  
20 
[All goods]
Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly
18%/12%
12%
8.  
2103, 2103 00, 2103 90 90
Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces
18%
12%
9.  
2103 90 10, 2103 90 30, 2103 90 40
Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings
28%
18%
10.  
2106
Bari made of pulses including mungodi
18%
12%
11.  
2201 90 10
Ice and snow
12%
5%
12.  
2501
Salt, all types
5%
0%
13.  
27
Bio gas
12%
5%
14.  
28
Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002
12%
0%
15.  
30
Insulin
12%
5%
16.  
29, 30, 3302
(i) Menthol and menthol crystals,
(ii) Peppermint (Mentha Oil),
(iii) Fractionated / de-terpenated mentha oil (DTMO), 
(iv) De-mentholised oil (DMO),
(v) Spearmint oil,
(vi) Mentha piperita oil
18%
12%
17.  
3304 20 00
Kajal [other than kajal pencil sticks]
28%
Nil
18.  
3304 20 00
Kajal pencil sticks
28%
18%
19.  
3307
Agarbatti
12%
5%
20.  
3407
Dental wax
28%
18%
21.  
3822
All diagnostic kits and reagents
18%
12%
22.  
3926
Plastic beads
28%
12%
23.  
3926 90 99
Plastic Tarpaulin
28%
18%
24.  
4202
(i) School satchels and bags other than of leather or composition leather;
(ii) Toilet cases [4202 12 10];
(iii)Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40];
(iv) Handbags of other materials excluding wicker work or basket work [4202 29 10].
28%
18%
25.  
4820
Exercise books and note books
18%
12%
26.  
4823
Kites
12%
5%
27.  
4903
Children’s' picture, drawing or colouring books
12%
Nil
28.  
57
Coir mats, matting and floor covering
12%
5%
29.  
65
[All goods]
Headgear and parts thereof
28%
18%
30.  
6703
Human hair, dressed, thinned, bleached or otherwise worked
28%
0%
31.  
68
Fly ash blocks 
28%
12%
32.  
6810 11 90
Pre cast Concrete Pipes
28%
18%
33.  
6906
Salt Glazed Stone Ware Pipes
28%
18%
34.  
7015 10
Glasses for corrective spectacles and flint buttons
18%
12%
35.  
71
Rough precious and semi-precious stones
3%
0.25%
36.  
7607
Aluminium foil
28%
18%
37.  
8215
Spoons, forks,  ladles, skimmers,  cake servers, fish knives, tongs
18%
12%
38.  
8308
All goods, including hooks and eyes
28%
18%
39.  
84
Pawan Chakki that is Air Based Atta Chakki 
28%
5%
40.  
84
Fixed Speed Diesel Engines 
28%
12%
41.  
4011
Rear Tractor tyres and rear tractor tyre tubes
28%
18%
42.  
8708
Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle
28%
18%
43.  
8423 & 9016
Weighing Machinery [other than electric or electronic weighing machinery]
28%
18%
44.  
8443
Printers [other than multifunction printers]
28%
18%
45.  
8482
Ball bearing, Roller Bearings, Parts & related accessories
28%
18%
46.  
8504
Transformers Industrial Electronics
28%
18%
47.  
8504
Electrical Transformer
28%
18%
48.  
8504
Static Convertors (UPS)
28%
18%
49.  
8521
Recorder
28%
18%
50.  
8525
CCTV
28%
18%
51.  
8525 60
Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc.
28%
12%
52.  
8528
Set top Box for TV
28%
18%
53.  
8528
Computer monitors not exceeding 17 inches
28%
18%
54.  
8539
Electrical Filaments or discharge lamps
28%
18%
55.  
8544
Winding Wires
28%
18%
56.  
8544
Coaxial cables
28%
18%
57.  
8544 70
Optical Fiber
28%
18%
58.  
8472
Perforating or stapling machines (staplers), pencil sharpening machines
28%
18%
59.  
8715
Baby carriages
28%
18%
60.  
9002
Intraocular lens
18%
12%
61.  
9004
Spectacles, corrective
18%
12%
62.  
9017
Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers)
28%
18%
63.  
9403
Bamboo furniture
28%
18%
64.  
9504
Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines]
28%
12%
65.  
9506
Swimming pools and padding pools
28%
18%
66.  
9603 10 00
Muddhas made of sarkanda and phool bahari jhadoo
5%
0%
67.  
9704
Postage or revenue stamps, stamp-post marks, first-day covers, etc.
12%
5%
68.  
9705
Numismatic coins
12%
5%
69.  
4823 90 11, 8472, 9101,9102, 9021
Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability 
[These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)]
-
5%







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