GST Rates reduced in 16th Meeting of GST Council

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Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017

The 16th GST Council was headed by Arun Jaitley (Finance Minister of India) on 11th June 2017. The purpose of the meeting is to rethink on certain GST rates of items & giving final verdict on accounting rules. Out of 133 proposals, GST Council has reduced GST Rates for only 66 items.

The major highlights of the meeting were:

  • Composition scheme limit increased to Rs. 75 Lakhs from Rs. 50 Lakhs for traders, manufacturers and restaurants.
  • Packaged food items including food and vegetables will be taxed at reduced rate of 12 % instead of 18%.
  • Nuts (Cashew Nuts) will be taxed at reduced rate of 5% instead of 12%.
  • School bags will be taxed at reduced rate of 18% instead of 28%.
  • Movie tickets above Rs.100 will be continue to be taxed at 28%.
  • Movie tickets below Rs.100 will attract 18%.GST Rates reduced in 16th Meeting of GST Council
  • Insulin taxable at 5 %.
  • Gem & Jewellery sector will be liable at 5%.
  • Computer printers will be taxed at reduced rate of 18% from 28%.
  • Agarbatti revised will be taxed at reduced rate of 12% to 5 %.
  • Colouring books revised from 12% to NIL rate.
  • Exercise Books revised from 18% to 12%.
  1. In the list of service tax exemptions to be continued in GST as approved by the GST Council, after S.No. 83, the following shall be inserted –
Sl. No. Proposal/ request
84.

Pure services (excluding works contract service or other composite supplies involving  supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution

85.

Services provided to the Government under any insurance scheme for which total premium is paid by Government

86.

Services provided to the Government under any training programme for which total expenditure is borne by the Government

  1. In the schedule of GST Rates for Services as approved by the GST Council, after S.No. 13, the following shall be inserted –
Sl. No. Description of Services GST Rates
13A Services by way of job work in relation to –

a)      Textile yarns (other than man-made fibre/filament) & textile fabrics

b)      Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN

c)      Printing of books (including braille books), journals and periodicals d) Processing of leather

5% with

Full ITC

27A Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is Rs. 100 or less. 18% with

Full ITC

  1. Exemption from registration under section 23(2) of the CGST Act 2017 of – 1. Individual advocates (including senior advocates)
  2. Individual sponsorship service providers (including players).

That’s all for GST Rates reduced in 16th Meeting of GST Council. Keep Sharing.

 

4 COMMENTS

  1. the reduction of job works for textile industry is a welcome step in right direction.what about small weavers buying mmf(man made fibres)AT 18%GST and allowed to take input credit to the extend of GST@5% only when the mills producing the yarn weave and sell fabrics from the same factory @5%GST without 18%GST on the yarn.how can the small weaver will compete with this large yarn manufacturer like reliance,birlas.Secondly in the name of digitalisation small ,medium tax payers are forced to spend money on new software,data usage for regular uploading of data at extra cost eating into the profit of these concerns ,salary and investment for computers and operators add to their burden.should india is not a place for MSMEs.?

  2. Dear Sir,

    Please clarify the followings:-

    1) How to Claim inputs on purchases of:
    a) From outside State ?
    b) From within the state?
    c) Import Purchase
    2) Can input be claimed on the following:-
    a) Freight amount (if yes, is there limitation of amount?)
    b) Purchase of computer
    c) Purchase of Stationery
    d) Purchase of Car for office
    d) Purchase of A.C. for office
    e) Purchase of Godown
    f) Rent of godown
    g) Advocates & CA’s Fee

    3) If Construction company pucharse plywood, they will get tax rebate or not?

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