GST Council – Meeting on June 11, 2017
The GST Council has in the meeting on June 11, 2017 reduced / rationalized the rate of tax on certain goods and services, increased the threshold for composition dealers and also decided on exemption from the levy of IGST on certain imports and also approved the Accounts and Record Rules.
The next meeting of the council is scheduled on June 18, 2017 (Sunday) to finalise the remaining issues including taxation of lotteries and E - way bills.
It is learnt that a committee of officials is working the mechanism for implementing the anti-profiteering provision.
Here are the highlights of the decision of the GST Council in the meeting held on June 11, 2017.
GST - Rate of Tax on Goods
The GST Council approved revision of rates on certain commodities based on representations received from the industry and on the principles of “maintaining equivalence and utilization behavior".
Here are the highlights of the Rate of Tax Reduced
|
Commodity |
GST rate fixed earlier |
Revised rate as decided in 11/06/2017 meeting |
|
Plastic tarpaulin |
28% |
18% |
| School bags | ||
|
Pre-cast concrete pipes |
||
| Some Tractor components | ||
| Computer printers | ||
| Ball bearings | ||
|
Packaged food (fruit, vegetable products, pickles, toppings, sauces, instant food items etc.) |
18% |
12% |
| Exercise Books | ||
| Cutlery | ||
|
Cashew Nut |
12% |
5% |
| Agarbatti | ||
|
Insulin |
||
|
Children Colouring book |
12% |
0% |
Click to download Details of Rates reduced on certain Goods.
GST – Service Tax Exemption
The GST Council approved further Exemption / Reduction in rate of GST on certain Services.
Here are the highlights of the Rate of Tax Reduced
|
Description |
GST rate fixed earlier |
Revised rate as decided in 11/06/2017 meeting |
| Job work in textile, leather, printing, jewellery Gems and diamond processing |
18% |
5% |
| Movies |
28% |
18% for the ticket value <Rs.100 and 28% for the ticket value > Rs.100 |
Further exemption has been granted from registration for Individual advocates (including senior advocates) and Individual sponsorship service providers (including players).
Click to download Details of Exemption / Rates reduced on Certain Services.
GST Rules
The GST Council approved Accounts and Record Rules and Formats.
Threshold for Composition
The GST Council expanded the scope of the composition scheme for the benefit of small traders, manufacturers, and restaurateurs increasing the threshold from Rs.50 lakhs to Rs.75 lakhs. 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.
The rate of tax applicable would be
1% of turnover in State or turnover in Union Territory in case of a manufacturer;
2.5% of turnover in State or turnover in Union Territory in case of persons engaged in making supplies referred to in Paragraph 6(b) of Schedule II to the Act; and
0.5% of turnover in State or turnover in Union Territory in case of other suppliers.
IGST Exemption under GST
The GST Council decided to exempt from levy of IGST on certain imports under Agreement between India and Pakistan / Bangladesh for regulation of Bus Service and decided on certain Technical Exemptions for Temporary import / Re-Import.
Click to download Details of IGST Exemption.
Date: 12/06/2017