• Recommendations of 36th GST Council meeting


    Recommendations of 36th GST Council meeting


    The 36th GST Council Meeting was held here today i.e. 27.07.2019, via Video Conference, key decisions of the same are:

    A.   GST rate related changes on supply of goods and services

                     (i)      The GST rate on all electric vehicles be reduced from 12% to 5%.

                    (ii)      The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.

                  (iii)      Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.

    (These changes shall become effective from 1st August, 2019.)

    B.   Changes in GST law:

                             (i)         Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 (by exclusive supplier of services), to be extended from 31.07.2019 to 30.09.2019.

                          (ii)         The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the quarter April, 2019 to June, 2019 (by taxpayers under composition scheme), to be extended from 31.07.2019 to 31.08.2019.







    UNION BUDGET 2019-20

    What does it offer?

    © Agarwal Sanjiv & Company

    Chartered Accountants, Jaipur



    The Union Budget for the year 2019-20, as laid in the Parliament today (i.e., 5th July, 2019) is the first Budget of the new Union Government and so for the Union Finance Minister, a woman. While the Budget promises a host of plans, welfare schemes and developmental activities, here is a snap shot of the of the Indian economy and Budget offerings in terms of direct and indirect taxation and directions for the economy in the backdrop of economic slowdown.


    A.    Economic Highlights and Select Proposals

    • Economic survey suggest economic growth with macro-economic stability
    • India is now the 6th largest economy in the world, compared to 11th largest economy in 2014.
    • Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms
    • Indian economy to become a 3 trillion dollar economy in the current year, aspiring to be a 5 trillion dollar economy
    • Fiscal deficit in FY19 at 3.3% of the GDP
    • Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.
    • Common man000040000s life changed through MUDRA loans for ease of doing business.
    • Various measures related to MSMEs announced like Pradhan Mantri Karam Yogi Maandhan Scheme, Interest Subvention Scheme for MSMEs, Payment platform for MSMEs
    • Measures to make India a more attractive FDI destination.
    • GDP predicted @7% for financial year 2019-20
    • Focus on private investment and infrastructure
    • Industrial production and service sector growth not encouraging
    • Labour laws reforms to be prioritized
    • Life expectancy increases and ought to be addressed
    • Starts up econ system to be liberalized to encourage entrepreneurship


    B.     Direct Taxes Highlights and Select Proposals

    • Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore
    • Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crores (earlier Rs. 250 crores).
    • Surchage increased for individuals having income from Rs. 2 crores to Rs. 5 crores
    • TDS of 2% on aggregate cash withdrawals exceeding Rs. 1 crore in a year from a bank account
    • Business establishments with annual turnover more than Rs. 50 crore shall have to offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants.


    • Tax Simplification and Ease of living

    Ø  Interchangeability of PAN and Aadhaar: Return can be file using Adhaar instead of PAN and also Aadhaar can be used wherever PAN is required.

    Ø  Pre-filling of Income-tax Returns for faster, more accurate tax returns

    Ø  Faceless e-assessment with no human interface to be launched

    • Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh.




    • E-Vehicles

    Ø  Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.

    Ø  Customs duty exempted on certain parts of electric vehicles.

    Ø  GST rate proposed to be reduced from 12% to 5%


    • Start-ups

    Ø  Capital gains exemptions from sale of residential house for investment in start-ups extended till FY21.

    Ø  Funds raised by start-ups to not require scrutiny from Income Tax Department


    • STT restricted only to the difference between settlement and strike price in case of exercise of options


    C.    Indirect Taxes Highlights and Select Proposals

    a)  Customs , Service Tax and Central Excise

    • Import duty on gold & precious metals increased to 12.5% from 10%.
    • Import of Defence equipment not manufactured in India exempt from Customs Duty
    • 5% Basic Custom Duty imposed on imported books.
    • Customs duty reduced on certain raw materials, like Inputs for artificial kidney, Capital goods required for manufacture of specified electronic goods, etc
    • Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs. 1 per litre on petrol and diesel
    • Legacy Dispute Resolution Scheme, 2019 for quick closure of pending litigations in Central Excise and Service tax from pre-GST regime
    • Service Tax (provisions shall apply retrospectively):

    Ø  No service tax shall be levied or collected in respect of taxable service provided or agreed to be provided by the State Government by way of grant of liquor licence, against consideration in the form of licence fee or application fee, by whatever name called, during the period commencing from the 01.04.2016 to 30.06.2017.

    Ø  Refund of tax already collected but which would not have been so collected shall be given and application for the claim of such refund shall be made within a period of 6 months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

    Ø  Special provision for retrospective exemption from service tax in certain cases relating to services provided by Indian Institutes of Management to students  for period 1st July, 2003 to 31st March, 2016.

    Ø  Special provision for retrospective exemption from service tax in certain cases relating to long term lease of plots for development of infrastructure for financial business for 1st October, 2013 to 30th June, 2017


    D.    Goods and Service Tax (GST)

    • Acknowledges GST as a monumental tax reform in country
    • Praises cooperative federalism and efforts of GST Council
    • Admits teething problems in GST implementation, but considers it to be natural, looking to the scale of reform.
    • Stress on further simplification of GST processes, including simplified single return and e-invoice system.

    GST revised collection for financial year 2018-2019             Rs.  643900 crores

    Budget estimate for GST collection for financial                   Rs. 663343 crores

    year 2019-2020




    • Changes in GST law

    Changes proposed in CGST / IGST / UGST tax laws:

    Ø  CGST

    Insertion of new Section

    Relating to


    Facility of digital payment  to recipient


    Transfer of certain amounts


    Constitution of National Appellate Authority for advance ruling and AAAR


    Appeal to National Appellate Authority


    Order of National Appellate Authority


    Ø  IGST

    Insertion of new Section

    Relating to


    Transfer of certain amounts by Government to State / Union Territory


    Retrospective Exemption in relation to Uranium Ore Concentrate


    Ø  UGST


    Insertion of new Section

    Relating to


    Retrospective Exemption in relation to Uranium Ore Concentrate



    Amendment in  CGST Law




    Adjudicating Authority to exclude National Appellate Authority


    Alternative composition scheme for supplier of services or mixed suppliers


    Higher threshold exemption for supplier of goods upto Rs. 40lakhs


    Mandatory use of Aadhaar for taking GST registration


    Quarterly payment / furnishing of annual return by composition suppliers


    Commissioner empowered to extend date of furnishing annual return


    Facility to transfer amount from one head to another in e-cash ledger


    Providing for charging interaction net cash tax liability


    Commissioner empowered to extend the date of furnishing TCS return


    Central Government empowered to refund State tax to taxpayers


    Seeking advance ruling from National Appellate Authority for Advance Ruling


    National Appellate Authority empowered to rectify Advance Ruling


    Ruling of National Appellate Authority to be binding to all persons having same PAN


    National Appellate Authority Ruling to be void if obtained through fraud, suppression etc


    National Appellate Authority to have powers of civil court under CCP, 1908


    National Appellate Authority to regulate its own procedures


    Commissioner to exercise power u/s 44 & 52 with approval of CBIC


    National Anti-Profiteering Authority empowered to impose penalty @10% of profiteered amount


    (For any clarifications, mail us at asandco@gmail.com )



  • Recommendation of GST Council Meeting held on 21.06.2019 at New Delhi


    Recommendation of GST Council Meeting held on 21.06.2019 at New Delhi

    A. Relating to returns

    a)    New return system

    A new return system to be introduced in a phased manner, as described below:

                                         i.        Form GST ANX-1 & ANX -2 shall be available on trial basis, during period from July, 2019 to September, 2019. But Form GSTR-1 and GSTR-3B shall also be filed during the said period.

                                       ii.        From October, 2019 onwards Form GST ANX-1 is to be made compulsory, where

    • Large taxpayers (aggregate turnover of previous year is more than 5 crores) shall be required to file GST ANX-1 on monthly basis.
    • Small taxpayers to file first GST ANX-1 for quarter October, 2019 to December, 2019 in January, 2020.


                                      iii.        Large taxpayers shall be required to file

    • Form GSTR-3B & GSTR-1 for October & November, 2019
    • First Form GST RET-01 for December, 2019 in January, 2020
    • Form ANX-2 may be viewed from October, 2019 onwards but no action shall be allowed on such Form.

                                      iv.        Small taxpayers shall

    • stop filing GSTR-3B & start filing Form GST PMT-08, from October, 2019.
    • File their first Form GST RET-01 for quarter October 2019 to December,2019 in January, 2020.

    From January, 2020 onwards FORM GSTR-3B to be completely phased out

    b)    Extension in dates


    Due date filing few returns and form have been extended as follows:




    Extended due date


    FY 2017-18



    FY 2017-18



    FY 2017-18


    GST ITC-01

    July, 2017 to June, 2019


    GST CMP-02


    For availing payment option under N.No. 2/2019-CT(R) dated 07.03.2019



    B. Relating to E-way Bill


    Rule 138E of the CGST rules, pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods, to be brought into effect from 21.08.2019, instead of the earlier notified date of 21.06.2019.

    (Notification No. 25/2019-Central Tax dated 21.06.2019)


    C. Relating to Rates


    The Council has recommended following GST rate related changes on supply of goods and services:


                        a)        Electric Vehicles

    Fitment committee shall examine the issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle and shall be brought before the Council in the next meeting.


                        b)        Solar Power Generating Systems and Wind Turbines

    Fitment committee shall examine the issue related to valuation of goods and services in a solar power generating system and wind turbine and shall be brought before the Council in the next meeting.


                         c)        Lottery

    After deliberations on the various issues on rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) would require legal opinion of Learned Attorney General.


    D. Other important decisions


    • Decision regarding location of the State and the Area Benches for the Goods and Services Tax Appellate Tribunal (GSTAT) for various States and the Union Territories with legislature has been taken by Council and decided to have a common State Bench for the States of Sikkim, Nagaland, Manipur and Arunachal Pradesh.
    • The tenure of National Anti-Profiteering Authority has been extended by 2 years.
    • It has also been decided to introduce electronic invoicing system in a phase-wise manner for B2B transactions. The Phase 1 is proposed to be voluntary and it shall be rolled-out from January 2020.




  • Decisions taken by the GST Council in the 34th meeting held on 19th March, 2019


    Decisions taken by the GST Council in the 34th meeting held on 19th March, 2019


    Ø  Option for under construction projects

    ü Under Construction projects as on 31st March, 2019 shall have an option to choose old rates (effective rate of 8% or 12% with ITC) with input tax credit or new rates without input tax credit.

    ü If the option is not exercised within the prescribed time limit then new rates shall apply.


    Ø  Conditions for the new tax rates:

    ü Atleast 80% of the material to be procured from registered dealers. Further, on shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

    ü Input tax credit shall not be available.


    Ø  Applicability of new tax rates:

                    The new tax rates which shall be applicable as follows:

    ü 1% without input tax credit (ITC) on construction of affordable houses shall be available for:

    • Houses having area of 60 sqm in non- metros / 90 sqm in metros and value upto RS. 45 lakhs
    • Under construction affordable houses presently eligible for concessional rate of 8% GST (after 1/3rd land abatement)


    ü 5% without input tax credit shall be applicable on construction of:

    • Under construction houses other than affordable houses presently booked prior to or after 01.04.2019. For houses booked prior to 01.04.2019, new rate shall be available on instalments payable on or after 01.04.2019.
    • Commercial apartments having carpet area of not more than 15% of total carpet area of all apartments.


    Ø  Transition for ongoing projects opting for the new tax rate:


    ü Ongoing projects not been completed by 31.03.2019 shall transition the ITC in proportion to booking of the flat and invoicing done for the booked flat is available subject to a few safeguards.

    ü For mixed project transition of ITC shall be allowed on pro-rata basis in proportion to carpet area of the commercial portion.


    Ø  Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019


    Ø  Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be exempted with the condition constructed flats are sold before issuance of completion certificate and tax is paid on them.

    Ø  Exemption can be withdrawn (limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses) if flats sold after issue of completion certificate.

    Ø  Builder shall be liable to pay tax on TDR, FSI, long term lease (premium) on the date of date of issue of completion certificate.




  • Recommendations of 33rd GST Council Meeting


    Recommendations of 33rd GST Council Meeting

    The 33rd GST Council meeting held on 20.02.2019 and adjourned meeting on 24.02.2019 made the following recommendations:


    Extension in due date of Form GSTR 3B

    Ø  The due date of filing of return in Form GSTR 3B for the month of January, 2019 extended upto 22.02.2019.


    Ø  However, for registered persons whose principal place of business is in the State of Jammu and Kashmir the last date shall be 28.02.2019.


    Ø  Change in rates for Real estate (housing)

    Ø  Under construction properties or ready-to-move-in flats where completion certificate has not been issued at the time of sale (other than affordable housing segment): from 12% (with ITC) to 5% (without ITC)


    Ø  Affordable housing segment: from 8% (with ITC) to 1% (without ITC)


    [Affordable house will mean a residential house/ flat of carpet area of upto 90 sqm in non-metropolitan cities/ towns and 60 sqm in metropolitan cities* having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities)].


    *Metropolitan Cities are Bengaluru, Chennai, Delhi National Capital Region (NCR) (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region (MMR)].


    Ø  The new rates shall be applicable from 01.04.2019 after notification.


    GST exemption on TDR/ JDA, long term lease (premium), FSI: 

    Ø  Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential properties on which GST is payable.


    Tax rate on lottery

    Ø  GST Council decided that the issue of tax rate on lottery needs further discussion in the GoM constituted in this regard.



  • Major Decisions taken in 32nd GST Council Meeting held on 10th January, 2019


    Major Decisions taken in 32nd GST Council Meeting held on

    10th January, 2019


    The GST Council in its 32nd Meeting held on 10th January, 2019 at New Delhi, took the following major decisions:


    Ø  Higher exemption threshold limit for registration w.e.f. 01.04.2019


    • There would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e. Rs 40 lakhs and Rs 20 lakhs.


    • States would have an option to decide about one of the limits within a weeks000040000 time.


    • The threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.


    Ø  Major changes in Composition Scheme w.e.f. 01.04.2019


    • Increase in turnover limit for the existing Composition Scheme: The limit of Annual Turnover in the preceding financial year for availing composition scheme for goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States.


    • Composition Scheme for Services: Presently, there was no composition scheme for providers of services and mixed supplies. Now, for such suppliers, a composition scheme shall be made with a tax rate of 6% (3% CGST +3% SGST) having an annual turnover in the preceding financial year up to Rs 50 lakhs. The said scheme shall be applicable to providers of service as well as suppliers of goods and services (mixed suppliers).
    • Compliance Simplification: Composition Dealers would need to file only one Annual Return but Payment of Taxes would remain Quarterly (along with a simple declaration).



    Ø  Other Decisions:


    • Free accounting and billing software shall be provided to small taxpayers by GSTN.


    • Levy of cess on intra-state supply of goods and services within the state of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.


    • A seven member Group of Ministers (GOM) shall be constituted to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector and to examine the GST rate structure on lotteries.



  • Recommendations of 31st GST Council Meeting held on 22nd December, 2018


    Recommendations of 31st GST Council Meeting held on 22nd December, 2018


    (a)GST  on certain Goods

    • GST rate reduced on certain items like digital cameras, video game consoles, power banks of lithium ion batteries, on parts and accessories for the carriages for disabled persons etc.
    • GST rate brought to Nilon music Books, vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container, etc.
    • GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc. The Council has recommended that in all cases, where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant, 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.


    For detailed information, refer:



    (b)GST  on certain Services

    • GST rate reduced on cinema tickets and third party insurance premium of goods carrying vehicles.
    • Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at medical establishments, educational institutions, rehabilitation centers established by Central Government / State Government or Union Territories or entity registered under section 12AA of the Income-tax Act shall be exempted.
    • Services provided by GTA to Government departments/local authorities which have taken registration only for the purpose of deducting tax under Section 51 shall be excluded from payment of tax under RCM and the same shall be exempted.
    • The nature of business establishment making supply of food, drinks and other articles for human consumption will not determine whether the supply by such establishments is a supply of goods or services. It will rather depend on the constituents of each individual supply and whether same satisfies the conditions / ingredients of a "composite supply" or "mixed supply".
    • GST is exempt on supply of food and drinks by an educational institution when provided by the institution itself to its students, faculty and staff and is leviable to GST of 5% when provided by any other person based on a contractual arrangement with such institutions.
    • Banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent.


    For detailed information, refer:



    (c)  Other policy recommendations:

    • There would be a single cash ledger for each tax head. The modalities for implementation would be finalised in consultation with GSTN and the Accounting authorities.
    • The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.
    • The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 - 2018 shall be further extended till 30.06.2019.
    • The following clarificatory changes, inter-alia, shall be carried out in the formats/instructions according to which the annual return / reconciliation statement is to be submitted by the taxpayers:

    i)        Amendment of headings in the forms to specify that the return in FORM GSTR-9 &FORM GSTR-9A would be in respect of supplies etc. ‘made during the year000040000 and not ‘as declared in returns filed during the year000040000.

    ii)       All returns in FORM GSTR-1&FORM GSTR-3B have to be filed before filing of FORM GSTR-9&FORM GSTR-9C.

    iii)      All returns in FORM GSTR-4 have to be filed before filing of FORM GSTR9A.

    iv)      HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies.

    v)      Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash.

    vi)      ITC cannot be availed through FORM GSTR-9 &FORM GSTR-9C.

    vii)   All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in FORM GSTR-1) would be auto-populated in Table 8A of FORM GSTR-9.

    viii)  Value of "non-GST supply" shall also include the value of "no supply" and may be reported in Table 5D, 5E and 5F of FORM GSTR-9.

    ix)     Verification by taxpayer who is uploading reconciliation statement would be included in FORM GSTR-9C.

    • The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019.
    • The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.
    • ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.
    • All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.
    • Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.
    • Amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger.


    For detailed information, refer:



    = = = = = = = =





  • GST Council Meeting 31st October, 2018


    GST Council Meeting 31st October, 2018


    A seven-member Group of Ministers (GoM) is formed to look into the following verticals and submit a report of recommendations to the GST council by 31st October, 2018 on the following issues:


    a. Imposition of cess under GST to provide relief to Kerala flood victims - Kerala Government pitched to the GST Council to charge a 10% cess to recover the loss due to floods. The GoM is to take a call on whether or not the proposed cess must come into effect and who must bear the same.


    b. A temporary tax under GST to help states in exigencies: GoM is to look into the long-term implications of levying state cess. This cess will be levied on the commodities for a temporary period, subject to notification. However, an additional 1% tax on selected items was discussed in the meeting.


    c. Other Issues to be looked by GoM: The committee will look into the issues such as whether the temporary tax should be levied only in the state concerned or should it be an all-India imposition. Also, a class of goods subject to this tax must be proposed and decided.


    It will also to look into whether the National Disaster Response Fund (NDRF)/State Disaster Response Fund (SDRF) mechanism is enough to deal with the calamities and the situations where calamity tax can be legally imposed under GST.






    Digital Payments:

    • Incentives in the form cash back will be offered on the GST component of the bill for payments made digitally.
    • Digital modes will include payments through -

    (a)  Rupay Debit card

    (b)  BHIM UPI

    (c)  UPI Aadhaar

    (d)  USSD (Unstructured Supplementary Service Data)

    • A cash back of 20% on the GST component will be credited to the consumers, which will be limited to Rs. 100 only per transaction.
    • This will be a trial basis process by the GST council to check whether it increases the tax payment compliances or not.
    • It will not be a compulsory adoption by the states. The states will have to volunteer for these processes to be implemented.

    MSME000040000s :

    • A group of ministers has been formed to study and address the issues related to MSMEs.
    • This group will work in alignment with the law and fitment committee to address the concerns of this sector on GST compliances and procedures related to GST return filings.

    Next meeting of GST Council is to be held on 28 & 29 September, 2018 at Goa








    Ø  Major reduction in GST rates on Goods

    GST rate reduced

    • from 28% to 18% on approx 26 items like washing machines, vaccum cleaners, Domestic electrical appliances, Works trucks, etc.
    • from 28% to 12% on Fuel Cell Vehicle along with an exemption from compensation cess on such vehicle.
    • From 12% to 5% on approximately 4 items like Knitted cap/topi having retail sale value not exceeding Rs 1000, etc.
    • From 18% to 12% on 4 items like Bamboo flooring, Brass Kerosene Pressure Stove.
    • From 18% to 5% on Ethanol for sale to Oil Marketing Companies for blending with fuel and Solid bio fuel pellets.
    • from 18%/12%/5% to Nil on approximately 8 items like Sanitary napkins, Stone/Marblem Phool Bhari Jhadoo etc.


    Ø  Major reduction in GST rates on Services


    • Education/Training: GST rate on supply of e-books reduced from 18% to 5%.
    • On composite supply of multimodal transportation, GST shall be applicable @12% with full ITC
    • Recommendation have been provided in order rationalize the notification entry prescribing reduced GST rate on composite supply of works contract received by the Government or a local authority in the course of their sovereign functions.
    • Recommendation have been provided in order rationalize entry relating to composite supply of food and drinks in restaurant, mess, canteen, eating joints and such supplies to institutions (educational, office, factory, hospital) on contractual basis at GST rate of 5%; and making it clear that the scope of outdoor catering under 7(v) is restricted to supplies in case of outdoor/indoor functions that are event based and occasional in nature.


    Ø  Exemptions for services

    • Social Security/pension Security/Senior Citizens: No GST shall be payable on

    ü  services provided by Coal Mines Provident Fund Organisation to the PF subscribers

    ü  services by an old age home run by State / Central Government or by a body registered under 12AA of Income Tax Act) to its residents (aged 60 years or more) against consideration upto Rupees Twenty Five Thousand per month per member provided consideration is inclusive of charges for boarding, lodging and maintenance.

    ü  the administrative fee collected by National Pension System Trust


    • Banking and Finance: No GST shall be payable on Reinsurance Services provided to specified Insurance Schemessuch as Pradhan Mantri Rashtriya Swasthya Suraksha Mission (PMRSSM) (Ayushman Bharat), funded by Government.


    • No GST shall be payable on the guarantees given by Central/State Government/UT administration to their undertakings/PSUs.



    • No GST shall be payable on import of services by Foreign Diplomatic Missions/ UN & other International Organizations based on reciprocity.


    • No GST shall be payable on services supplied by an establishment of a person in India to any establishment of that person outside India related party.



    • No GST shall be payable on services provided by State and Central educational boards to students for conduct of examination.


    Ø  Migration Window

    • GST council has approved the proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.


    Ø  Simplification in return process


    • GST Council has approved new return formats and associated changes in law.
    • All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. One monthly return shall have following features:

    ü  The return to be simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier.

    ü  Invoices can be uploaded continuously by the seller and can be continuously viewed and locked by the buyer for availing input tax credit.

    ü  This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the seller.

    Simply put, the process would be "UPLOAD - LOCK - PAY" for most tax payers.

    • The Council has approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons - small traders making only B2C supply or making B2B + B2C supply.


    • The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.


    • NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.



    Ø  Amendments in CGST Act, 2017, IGST Act, 2017, UTGST Act, 2017 and GST (Compensation to States) Act, 2017


    • For Composition Scheme

    ü  Increase in threshold for from 1 cr to 1.5 cr

    ü  Supply of service allowed upto a value not exceeding 10% of turnover in preceding financial year or 5 lakhs, whichever is higher

    • Modification in section 9(4) w.r.t. goods to be taxed under reverse charge and registered person on whom, such tax be applicable.
    • Increment in threshold for special category states from 10 lakhs to 20 lakhs.
    • Multiple registration within state
    • Addition of following supplies to Schedule III (not to be treated as supply):

    ü  Supply of goods from a place in the non-taxable territory to another place in the nontaxable territory without such goods entering into India;

    ü  Supply of warehoused goods to any person before clearance for home consumption; and

    ü  Supply of goods in case of high sea sales.

    • Scope of Input tax credit is being widened, and it would now be made available in respect of the following:

    ü  Most of the activities or transactions specified in Schedule III;

    ü  Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;

    ü  Motor vehicles for transportation of money for or by a banking company or financial institution;

    ü  Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and

    ü  Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

    • No interest shall be payable on reversal of ITC, in case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice.
    • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
    • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.
    • Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
    • Recovery can be made from distinct persons, even if present in different State/Union territories
    • The order of cross-utilisation of input tax credit is being rationalized.



    Hotel Industry: GST rate slab on accommodation service shall be based on transaction value instead of declared tariff.


    Education/Training: GST rate on supply of e-books reduced from 18% to 5%.


    Export: It has been recommended to extend the exemption granted on outward transportation of all goods by air and sea by another one year i.e. upto 30th September, 2019 as relief to the exporter of goods.


    Rate change w.r.t footwear


    • 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair
    • Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%.


    v  GST rates brought down for specified handicraft items from 18% to 12% and on some items it has been reduced from 12% to 5%.


    General Clarifications

    • 5% GST on both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.
    • Beet and cane sugar, including refined beet and cane sugar, (falling under heading 1701) attracts 5% GST rate.
    • Water supplied for public purpose (other than in sealed containers) is exempt from GST.
    • Certain other miscellaneous clarification as regards classification/rate have been recommended.
    • The courses run by private ITIs for designated trades are exempt under GST whereas non-designated courses are taxable.




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