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28th GST council meeting

WHAT ARE THE UPDATES FROM THE 28TH GST COUNCIL MEETING?

 

Want to know what happened at the 28th GST Council meeting? Whether the meeting proved to be a saviour or added to the already existing misery of entrepreneurs?

 

The 28th GST Council meeting was scheduled for 21st of July, 2018 in which various decisions were taken. The key highlights of the proposed changes are specified hereunder:

 

 

 

 

 

 

 

 

 

 

 

 

Goods

Exempted

GST @ 5%

GST @ 18%

  • Fortified Milk

Y

 

 

  • Sanitary Pads

Y

 

 

  • Raw Material used in brooms

Y

 

 

  • Commemorative coins circulated by the RBI or government

Y

 

 

  • Saal Leaves

Y

 

 

  • Deities made of stone, marble or wood

Y

 

 

  • Fertiliser grade phosphoric acid

 

Y

 

  • Handloom Dari

 

Y

 

  • Lithium-ion batteries

 

 

Y

  • Food grinders, mixers, Shaver, hair clippers

 

 

Y

  • Storage water heaters, Vacuum cleaners, Paint, Footwear priced below INR 1,000/-

 

 

Y

  • Water cooler, Ice cream freezer, Refrigerators

 

 

Y

  • Hand dryers, Cosmetics, Scents, Varnishes, Perfumes, Electric smoothing irons

 

 

Y

  • Imported Urea, E-books

 

Y

 

  • Ethanol for petrol and diesel

 

Y

 

 

REGISTRATION

  • Tax payers could avail GST Registration up to August 31, 2018 without being liable for penalty.
  •  The threshold limit to take registration under GST has been increased to INR 20 Lacs as against INR 10 lacs for special category states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand and Jammu & Kashmir)

 

COMPOSITION SCHEME

  • The threshold limit to opt for composition scheme has been increased to INR 1.5 Crore as against INR 1 Crore.
  • Tax Payers who also provide services of up to 10% of their annual turnover can avail the composition scheme.

 

GST RETURN FILING

  • GST Return could be filed quarterly by the tax payers whose turnover is up to INR 5 Crore. Hence, taxpayers having turnover above INR 5 Crore are only required to file the GST returns on monthly basis.

 

REVERSE CHARGE MECHANISM

  • The already suspended Reverse Charge Mechanism has been further deferred for a period of 1 year.

 

INPUT TAX CREDIT

  • Much relief to the textile industry as now they can avail Input tax credit for fabrics.
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