SKP Group
SKP GST Update
GST rollout – Significant decisions of the GST Council
The GST Council in its meeting on 11  June 2017 has taken the following decisions:
 
Revision in rates of certain goods
  • The GST Council has revised the rates for certain goods after considering representations from various stakeholders. Some of the key revisions are as follows:
Sr no Chapter/Heading/Sub-heading/Tariff item Description of goods Earlier GST rate Revised GST rate
  1.  
20 [all goods] Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly, etc. 18%/12% 12%
  1.  
2103, 2103 00, 2103 90 90 Ketchup and sauces (other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings), Mustard sauces 18% 12%
  1.  
2103 90 10, 2103 90 30, 2103 90 40 Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings 28% 18%
  1.  
2201 90 10 Ice and snow 12% 5%
  1.  
2501 Salt (all types) 5% 0%
  1.  
30 Insulin 12% 5%
  1.  
29, 30, 3302
  1. Menthol and menthol crystals
  2. Peppermint (Mentha Oil)
  3. Fractionated/Deterpenated Mentha Oil (DTMO)
  4. Dementholised Oil (DMO)
  5. Spearmint oil
  6. Mentha Piperita Oil (MPO)
18% 12%
  1.  
8443 Printers (other than multifunction printers) 28% 18%
  1.  
8525 CCTV 28% 18%
  1.  
8528 Computer monitors not exceeding 17 inches 28% 18%
 
Certain service tax exemptions to be continued under the GST regime
  • The GST Council had earlier approved a list of service tax exemptions to be continued in the GST regime. The following services have been added to that exemption list:
    • Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the 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.
    • Services provided to the government under any insurance scheme for which total premium is paid by the government.
    • Services provided to the government under any training programme for which total expenditure is borne by the government.
Rates finalised for certain services
The GST Council has approved rates for certain additional services as follows:
Sr no Description of goods GST rate
  1.  
Services by way of job work in relation to:
  1. Textile yarns (other than man-made fibre/filament) and textile fabrics;
  2. Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals;
  3. Printing of books (including braille books), journals and periodicals;
  4. Processing of leather.
5% with full Input Tax Credit
  1.  
Movie tickets where the ticket price is INR 100 or less. 18% with full Input Tax Credit
 
Revised threshold limit for composition levy
  • The GST Council has recommended an increase in the turnover limit for composition levy under CGST and SGST from INR 5 million to INR 7.5 million in respect of all eligible registered persons.
  • However, whether the same increased turnover limit for Composition levy will apply in the case of the Special Category States or not will be decided in the next GST Council meeting.
SKP's comments
  • The GST Council in view of representation by various stakeholders has reduced the GST rate of 66 items. This will come as a huge relief for the industry which was worried about the effect on demand of certain goods because of the high GST rates.
  • Finalisation of rate in relation to important items like job work in relation to cut and polished diamonds is expected to provide relief to the industry.
  • The rules in respect of important provisions like the e-way bill, assessment and audit, etc. are yet to be finalised. These issues are expected to be taken up in the next GST Council meeting on 18 June 2017.
SKP
19 Adi Marzban Path | Ballard Estate | Fort | Mumbai 400 001 | India
+91 22 6730 9000 |
skp.gst@skpgroup.com | www.skpgroup.com
 
India | USA | Canada | UAE
Member of Nexia International
LinkedIn
Twitter
Facebook
Google+
YouTube
DISCLAIMER
This update contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this update, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this update. 


SKP Business Consulting LLP is a member firm of the "Nexia International" network. Nexia International Limited does not deliver services in its own name or otherwise. Nexia International Limited and the member firms of the Nexia International network (including those members which trade under a name which includes the word NEXIA) are not part of a worldwide partnership. For the full Nexia International disclaimer, please visit www.skpgroup.com.

© 2017 . All rights reserved.