GST Council – Meeting on 03/06/2017

Briefing the press, the Finance Minister Sri.Jaitely stated that the Government is prepared for Roll out of GST from July 1,2017 and that GSTN has also confirmed its preparedness.

Though confidence was expressed in the readiness to implement GST from July 1,2017, Sri Amit Mitra, Finance Minister West Bengal expressed concerns on the readiness of GSTN and preparedness of the tax administration and stated that he has made a formal representation to Sri Jailtey on his concerns.

GST Rate Schedule for Goods

Here are the highlights of the rate of GST decided

   Footwear below Rs.500 to be liable for GST at 5% and all other Footwear including leather footwear at 18%.

   All biscuits to be taxed at 18%.

   Beedi liable to GST at 28% without Cess. Beedi leaves to be taxed at 18%.

   Apparel below Rs.1000 to be taxed at 5% and remaining to liable to GST at 12%.

  Jute fibre and Silk Fibre – Exempt, Natural Fibre Yarn at 5% and Synthetic Yarn at 18%. Fabric to be liable to GST at 5%.

   GST on Bullion and Gold Jewellery decided at 3%.

   Diamonds to be liable to GST at 3% and Rough Diamonds at 0.25%.

   Agricultural Machinery fitted in 12% and 5%.

   Sales to CSD Canteen to be taxed at normal rate of tax. 50% of tax would be refunded to CSD canteen.

   Packaged Food sold under a registered Trademark to be liable to GST at 5%.

   Handmade Matches categorized under Pooja items.

GST Return Rules

The GST Council approved GST Return Rules and Return Formats and Sri Jailtey announced that notifications enabling registration would be issued.

Click to download GST Return Rules, GST Return Formats, GST Return Mismatch Formats, Goods and Service Tax Practitioner Formats

GST Transition Rules

As per the draft transition Rules, Credit of CGST on goods in stock with the wholesale dealers and Retail Dealer not received under an Excise Duty paying document would be entitled for credit/ refund of 40% of CGST paid on the sale within 6 months of the goods in stock on transition.

It is learnt that there is a relaxation in the entitlement of transition credit in stock. We shall update soon after the final GST Transition Rules is made available.

GST E way Bill Rules

The E Way Bill Rules are not yet approved.

It is not clear if E Way Bill Rules would be approved and the related IT infrastructure would be put in place before the scheduled roll out from July 1, 2017.

GST Anti Profiteering Measure

On the manner of implementation of the GST Anti Profiteering Measure Sri Jaitley stated that it was decided to set up a committee comprising central and state officials to review complaints.

The next meeting of the GST Council is scheduled on 11/06/2017 to deliberate and decide on representation received from Trade and Industry and remaining issues, if any.

Date: 03/06/2017