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GST Updates-August-2018

Notification No 13/2018 & 14/2018-Central , Union Territory Tax (Rate) & IGST – 26/07/2018

DescriptionOld rateNew rate
Accommodation, food and beverage services:
a) provided by a restaurant, eating joint including mess, canteen, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of accommodation of Rs.7500 and above per unit per day or equivalent.125
b) By the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms.5
c)At Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.18
Goods transport services:
Multimodal transportation of goods.12
Telecommunications, broadcasting and information supply services
a) Supply consisting only of e-book185
b) Other than  above18

Notification No 14/2018& 15/2018-Central & Union Territory Tax (Rate)& IGST-26/07/2018

The Central Government, inserted following services as NIL rated:

  • Services by an old age home run by Central Government, State Government or by an entity registered under section 12AA of the Income-tax Act, 1961 to its residents against consideration upto 25000 per month per member, provided that the consideration charged is inclusive of charges for boarding, lodging and maintenance.
  • Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee.
  • Services provided by an unincorporated body or a non-profit entity registered under any law to its own members against consideration in the form of membership fee upto an amount of one thousand rupees          (Rs 1000/) per member per year.
  • Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders.

Notification No 15/2018 & 16/2018-Central, Union Territory Tax (Rate)& IGST-26/07/2018

The whole of central tax leviable under section 9 of the said Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services. By the following notification Government has inserted Services supplied by individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm to bank or non-banking financial company(NBFCs) located in a taxable territory.

Notification No 18/2018 &19/2018-Central, Union Territory Tax(Rate) &IGST-26/07/2018

Goods and Services Now Taxable In:

Schedule I-5%

  • Ethyl alcohol for blending with petrol.
  • Fertilizer grade phosphoric acid.
  • Article of apparel and clothing accessories of value not exceeding Rs.1000 per piece.
  • Ecaussine and other calcareous monumental or building stone alabaster [other than marble and travertine], other than mirror polished stone.
  • Footwear having a retail sale price not exceeding Rs 1000 per pair.

Schedule II-12%

  • Bamboo flooring
  • Brass Kerosene Pressure Stove
  • Fuel Cell Motor Vehicles
  • Slide fasteners.
  • Hand operated rubber roller
  • Nozzles for drip irrigation equipment or nozzles for sprinklers.
  • Parts of slide fasteners.

Schedule II-18%

  • Paints and varnishes
  • Glaziers putty, grafting putty, resin cements, caulking compounds and other mastics, painters fillings, non-refractory surfacing preparations for facades, indoor walls, floors, ceilings or the like.
  • Refrigerators, freezers and other refrigerating or freezing equipment, electric or other, heat pumps other than air conditioning machines.
  • Household or laundry-type washing machines, including machines which both wash and dry.
  • Lithium-ion Batteries, Vacuum cleaners.
  • Electromagnetic domestic appliances
  • Shavers, hair clippers and hair-removing appliances, with self-contained electric motor.
  • Television set of screen size not exceeding 68 cm.
  • Electric instantaneous or storage water heaters, oil heating apparatus, electro thermic hair-dressing apparatus, and hand dryers, electric smoothing irons and electric heating resistors.
  • Special purpose motor vehicles (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological unit)
  • Scent sprays and similar toilet sprays, and mounts and heads therefore; powder-puffs and pads for the application of cosmetics or toilet preparations.
  • Works trucks, self-propelled, not fitted with lifting or handling equipment.
  • Trailers and semi-trailers; other vehicles, not mechanically propelled and Hand propelled vehicles (e.g. hand carts, rickshaws and the like); animal drawn vehicles]

Schedule IV-28%

  • Electric accumulators ,including separators other than Lithium-ion battery.
  • Monitors and projectors.

Notification No 19/2018& 20/2018 of Central ,Union Territory Tax (Rate)&IGST 26/07/2018

Goods and Services Now Exempt

  • Sal leaves, siali leaves, sisal leaves, sabai grass.
  • Vegetable materials, for manufacture of jhadoo or broomsticks.
  • Deities made of stone, marble or wood.
  • Khali Dona, Goods made of sal leaves, siali leaves, sisal leaves, sabai grass, including sabai grass rope.
  • Coir pith compost other than those put in unit container and bearing a registered brand name.
  • Sanitary towels(Pads) or sanitary napkins,
  • De-oiled rice bran
  • Rupee notes or coins when sold to RBI or the Government of India.

Notification No 20/2018&21/2018 -Central ,Union Territory Tax (Rate) & IGST  26/07/2018

Goods and services on which refund of unutilized input tax credit  shall be allowed on or after 1st day of August 2018 are:

  • Woven fabrics of silk, wool, cotton, paper yarn, textile materials, staple fibers , knitted or chrocheted fabrics..

The accumulated input tax credit lying unutilized in balance after payment of tax for and upto the month of july 2018 on the inward supplies received upto 31st july 2018 shall lapse.

Notification No 21/2018&22/2018-Central, Union Territory Tax (Rate) & IGST 26/07/2018

Central Government on being satisfied that it is necessary in a public interest exempts intra supplies of handicrafts goods falling under the heading or chapter of section 11 from so much of the central tax leviable under section 9 in excess of the rate mention there.

Notification No 2/2018-Compensation Cess (Rate) 26/07/2018

Central Government inserted following services as nil rated:

  • Fuel cell motor vehicles
  • Coal rejects supplied by a coal washery ,on which compensation cess has been paid and no input tax credit has been availed by any person.

Recommendations made by GST Council, yet to be Notified:

  • Regular taxpayers with a turnover of upto 5 crores can opt to file GST return on a quarterly basis against earlier limit of Rs. 1.5 crores. These taxpayers have to, however pay taxes monthly through a challan . Return can be either ‘Sahaj’ or ‘Sugam’, wherein the first one, report only B2C supplies and the other report both B2B & B2C supplies, respectively.
  • Regular taxpayers with turnover over 5 crores, have to file monthly returns-the new return filing system proposed by Shri Nandan Nilekani is approved. The process would be based on invoice-“UPLOAD-LOCK-PAY TAX’’.
  • Amendments shall be carried out by the filing of a return called amendment return and payment if any, will be through this return itself, to help save interest liability for the taxpayers.
  • It is proposed, NIL return filers (no purchase and no sale) shall be given facility to file the return by sending SMS.
  • Composite dealers can now get covered for the supply of services: Limit equal to or below 10% of the turnover of services rendered or 5 lakhs, whichever is higher is fixed for opting into the scheme. Restaurant services are not be included to reckon this criterion.
  • All council members have unanimously voted for bringing into effect the increased threshold limit of 1.5 crores from existing Rs. 1crore as soon as possible.
  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory. Earlier it was restricted to multiple businesses in the separate states.
  • E-commerce operators needed to have compulsory GST registration only on those non-exempt goods.
  • The threshold for GST exemption increased to 20 lakhs from 10 lakhs for 6 states-Taxpayers operating in Sikkim, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Assam & Meghalaya.
  • Reverse Charge Mechanism deffered for a year till 30th Sept 2019.
  • Relief of taxpayers up to 31st August 2018 to complete the registration:

Those with Prov ID, who couldn’t complete the process of registration, to complete the process and to encourage the same, the late fees are waived for return filing.

Taxpayers who filed Part A of FORM GST REG-26, but not Part B of the said Form are necessary to approach the jurisdictional Central Tax/State Tax nodal officers with the necessary details on or before 31st August 2018.

The late fee payable for delayed filing of return in such cases is waived. First, taxpayers pay late fees, the same will then be reversed in the cash ledger under the tax head.

  • Extension of the exemption by another year upto 30th September 2019, granted on outward transportation of all goods by air and sea, asrelief to the exporter of goods.
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