GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to changes in GST rates, and clarification (on Goods). The decisions of the GST Council have been presented in this note for easy understanding. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.
I. GST rate reduction on goods which were attracting GST rate of 28% :
A. 28% to 18%
- Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483
- Monitors and TVs of upto screen size of 32 inches
- Re-treaded or used pneumatic tyres of rubber;
- Power banks of lithium ion batteries. Lithium ion batteries are already at 18%.
- This will bring parity in GST rate of power bank and lithium ion battery.
- Digital cameras and video camera recorders
- Video game consoles and other games and sports requisites falling under HS code 9504.
B. 28% to 5%
- Parts and accessories for the carriages for disabled persons
II. GST rate reduction on other goods,-
A. 18% to 12%
- Cork roughly squared or debugged
- Articles of natural cork
- Agglomerated cork
B. 18% to 5%
- Marble rubble
C. 12% to 5%
- Natural cork
- Walking Stick
- Fly ash Blocks
D. 12% to Nil:
- Music Books 2 of 3
E. 5% to Nil
- Vegetables, (uncooked or cooked by steaming or boiling in water), frozen,branded and put in a unit container
- Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
- Exemption from GST on supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
- Exemption from GST on proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
- Exemption from IGST/Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
- Rate of 5%/18% to be applied based on transaction value of footwear
- Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
III. GST on solar power generating plant and other renewable energy plants
- GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.
- Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.
- To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate. 3 of 3
- Sprinkler system consisting of nozzles, lateral and other components would attract 12% GST rate under S.No. 195B of notification No. 1/2017-Central Tax (Rate) dated 28.6.2018
- Movement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for the further supply of such goods but for the provision of service does not involve a supply (e.g., movement of testing equipment etc.) and is not be liable to GST.
- The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44 attract GST at the rate of 12%.
- Concessional GST rate of 5% applies to the LPG supplied in bulk to an OMC by refiners/practitioners for bottling for further supply to household domestic consumers.
- While animal/cattle/aquatic/poultry feed are exempt vide S. No. 102 of notification No. 2/2017-Central Tax (Rate), this exemption would not apply to their inputs such as fish meal, meat bone meal, bran, sharps, oil cakes of various
oil seeds etc.
- Manure of determination of the classification of vitamins, provitamins etc. as animal feed supplements
- Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
- Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP falls under HS code 3923 and attract 18% GST rate.
- 18% GST is applicable on wood logs including the wood in rough/log used for pulping.
- Turbocharger is classified under heading 8414 and attracts 18% GST and not 5% GST.
- Fabric even if embroidered or has stitching of lace and tikki etc., and even if sold in three piece fabric as ladies suit set, will be classifiable as fabric and would attract 5% GST.
- Scope of concessional rate of 5% GST rate for specified equipment for waste to energy plant.
- Published in Goods and Service tax- GST
1. What is GSTR 9?
GSTR-9 is an Annual Return to be filed by the persons registered under the GST including those registered under composition scheme. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGST and IGST. It consolidates the information furnished in the monthly/quarterly returns during the year.
2. Who should file GSTR 9 annual return?
All the registered taxable persons under GST must file GSTR 9 form. However, the following persons are not required to file GSTR-9: Casual Taxable Person Input service distributors Non-resident taxable persons Persons paying TDS
3. What are different types of return under GSTR-9 form?
There are 4 types of return under GSTR 9 :
GSTR-9: should be filed by the regular taxpayers who are filing GSTR-1, GSTR-2 and GSTR-3.
GSTR-9A: should be filed by the persons registered under composition scheme under GST.
GSTR-9B: should be filed by the e-commerce operators who have filed GSTR-8 during the financial year.
GSTR-9C: should be filed by the taxpayers whose annual turnover exceeds INR 2 crores during the financial year. All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts, reconciliation statement of tax already paid and details of tax payable as per audited accounts, along with this return.
4. What is the due date of GSTR-9?
GSTR-9 due date is on or before 31st December of the subsequent financial year. Thus for the financial year 2017-18, filing GSTR-9 will happen on or before the 31st of December, 2018.
5. What is the Penalty for the late filing of GSTR-9 form?
If the GSTR-9 return is not filed on time, then a penalty of INR 100 per day under CGST & INR 100 per day under SGST shall be levied i.e. a total of INR 200 per day. However, the maximum of such a penalty will be an amount calculated at a quarter percent of the total taxpayer turnover in the respective State or Union Territory. There are no late fees however on IGST. Along with late fees, an interest has to be paid at the rate of 18% per annum and will be calculated by the taxpayer on amount of outstanding tax to be paid.
6. How to revise GSTR-9?
Form GSTR-9 once filed cannot be revised. Any mistake made in the return can be revised in the next month’s return when the error or omission is identified.
7. What are the details required in the GSTR-9 form?
Serial No. Parts of the GSTR-9 Details required to fill
1 Part-I Basic details of the taxpayer. This detail will be auto-populated.
2 Part-II Details of Outward and Inward supplies declared during the financial year(FY). This detail must be picked up by consolidating summary from all GST returns filed in previous FY.
3 Part-III Details of ITC declared in returns filed during the FY. This will be summarised values picked up from all the GST returns filed in previous FY.
4 Part-IV Details of tax paid as declared in returns filed during the FY.
5 Part-V Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual returns of previous FY whichever is earlier. Usually, the summary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared here.
6 Part-VI Other Information comprising details of: -GST Demands and refunds, -HSN wise summary information of the quantity of goods supplied and received with its corresponding Tax details against each HSN code, -Late fees payable and paid details and -Segregation of inward supplies received from different categories of taxpayers like Composition dealers, deemed supply and goods supplied on approval basis.
The author is a member of the CPA Institute, Australia and an Associate member of the Institute of Chartered Accountants of India.
- Published in Goods and Service tax- GST