LATEST UPDATES IN GST COUNCIL MEETING
Key Decisions in GST Council's 28th Meeting
1. Quarterly Returns approved for taxpayers with annual turnover less than Rs 5 Crores which will benefit about 93% of taxpayers. However, tax payments to continue on monthly basis.
2. Reverse charge mechanism under section 9(4) to remain suspended upto 30/09/2019 i.e. further extended for one year.
3. In a big relief to hoteliers, GST on Hotels accommodation would now be on actual tariff charged in Invoice & not declares tariff
4. Registration of the taxpayer will be suspended from the date of applying for cancellation of registration till the date of cancellation to relieve the taxpayers from compliance burden.
5. Refund of unutilised ITC on account of inverted duty structure in textile industry will be available for supplies made from 27/07/2018
6. Taxpayers will be eligible to opt for multiple registrations in a State for operational convenience. Turnover in such cases will be assessed on aggregate level.
7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
8. GST Rate on consumer electronics - TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder cut from 28% to 18%
9. GST Rate on special purpose vehicles, work truck, trailer cut from 28% to 18%
10. GST Rate on Lithium ion batteries, vacuum cleaners, food grinders, mixers, storage water heaters, head dryers, hand dryers, paints, varnishes, Wall Putty, Leather Items, water cooler, milk cooler, ice cream coolers, perfumes, toilet sprays and toilet preparation REDUCED from 28% to 18%
11. All the reduction in GST Rates shall become effective from 27/07/2018 before which necessary Notifications shall be issued.
12. Sanitary Napkins exempted from GST
13. GST on bamboo flooring reduced to 12%
14. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier.