GST Collections
GST Collections to Fall Short of ₹ 40,000 Crore from Expectation
September 23, 2019
GST Rate Cut on Hotel
GST Rate Cut on Hotel Tariffs Might Boost Tourism
September 24, 2019

Highlights of the 37th GST Council Meeting

In midst of the demand for rate cuts by several industries, the GST Council held its meeting in Panaji on 20th September 2019. Headed by the Union Finance Minister Nirmala Sitharaman and comprising of representatives from all the states and union territories (UTs), the 37th GST Council meeting in Goa was held in the backdrop of a slowdown in economic growth which hit a six-year low of 5% for the first quarter of the current financial year.

The meeting was scheduled to decide on tax moderation while considering the revenue position and the urgency to revive slowing economic growth. From automobiles to biscuits and hotels to FMCG, demands had been made by various sectors to reduce GST rates as the result of the economic slowdown.

Following are the key highlights and announcements which were made in the 37th GST Council Meeting held in Panaji on September 20, 2019.

Key takeaways from 37th GST Council Meeting

  • Waiver of the requirement of filing annual returns (FORM GSTR-9A) for composition taxpayers for FY 2017-18 and FY 2018-19.
  • Filing of FORM GSTR-9 made optional for taxpayers who have an aggregate turnover up to ₹ 2 Crores for FY 2017-18 and FY 2018-19.
  • A committee of officers to be formed to review the simplification of Forms for annual return and reconciliation statement.
  • Availment of input tax credit (ITC) to be restricted, unless the details of outward supplies (GSTR-1) has been filed by corresponding supplier.
  • The last date for filing of appeals before the GST Appellate Tribunal to be extended as the Appellate Tribunals are not functional yet.
  • New GST return system to be introduced from April 2020 which was earlier proposed from October 2019.
  • Circular No. 105/24/2019-GST dated 28 June 2019 which was issued in respect of post-sales discount to be taken back.
  • Suitable amendments in the CGST Act, UTGST Act, and the corresponding SGST Acts in view of the creation of UTs of Jammu & Kashmir and Ladakh.
  • Integrated refund system with disbursal by a single authority to be introduced from 24th September 2019.
  • Aadhaar to be mandatory for registration of taxpayers under GST and also may become mandatory for claiming refunds.
  • With the intention to tackle fake invoices and fraudulent invoices, reasonable restrictions on the passing of credit by risky taxpayers including risky new taxpayers.

Here are the GST rate changes on goods and services as recommended by the 37th GST Council Meeting. All these rate changes will be effective from 1st October 2019.

Item

Current Rate

New Rate

Hotels (Room Tariff from ₹ 1001 to  ₹ 7500)

18%

12%

Hotels (Room Tariff of ₹ 7501 and more)

28%

18%

Outdoor Catering services in premises having daily tariff unit of accommodation upto  ₹ 7500

18%(with ITC)

5%(without ITC)

Diamond Job work

5%

1.5%

Machine Job work

18%

12%

Plates and cups made of flowers, leaves, and bark

5%

Nil

Supplies of Railways wagons & coaches (No refund on accumulated ITC will be allowed)

5%

12%

Caffeinated Beverages

18%

28%+12% cess

Polypropylene/polyethylene woven & non-woven Bags and sacks, whether or not laminated

5%|12%|18%

12%

Almond Milk

 

18%

Marine fuel 0.5% (FO)

18%

5%

Wet grinders (consisting of stone as a grinder)

12%

5%

Slide fasteners

18%

12%

Dried Tamarind

5%

Nil

Semi-precious stones- cut & polished

3%

0.25%

Cess on Diesel Motor Vehicles (Capacity of 10-13 passengers)

15%

3%

Cess on Petrol Motor Vehicles (Capacity of 10-13 passengers)

15%

1%

Specified goods for petroleum operation under Hydrocarbon Exploration Licensing Policy (HELP)

5%

GST Exemption on

  • Imports of specified defense goods not manufactured indigenously (up to 2024)
  • Supply of goods and services to FIFA and other specified persons for the Under-17 Women’s Football World Cup in India
  • Supply to the Food and Agriculture Organization (FAO) for specified projects in India
  • Import of Silver/Platinum by specified nominated agencies
  • Supply of Silver/Platinum by specified nominated agencies to exporters for export of jewellery.

Conclusion

The slowing economic growth has prompted the government to introduce various measures in hope to revive the economy and business sentiment. The reduction in compliance issues could help businesses focus on their growth and put maximum efforts into expansion and job creation.

Leave a Reply

Your email address will not be published. Required fields are marked *

17 + = 19

HostBooks has been featured in






Want to know more about HostBooks?

We’ll help you out!






− 2 = 3