SKP Group
SKP GST Update
Update on the 20th GST Council meeting held on 5 August 2017

The 20th GST Council meeting was held on 5 August 2017. The major decisions taken during this meeting were in relation to the rationalisation of GST rates.  The table below summarises the key decisions:
  1. Rationalisation of rates
    Description of service Old rate New rate
    Job work services in respect of textile and textile products (including MMT yarn, garments, made-ups, etc. falling in Chapters 50 to 63) 18%/5% 5%
    Services by way of printing of newspapers, books (including Braille books), journals and periodicals where only content is supplied by the publisher and the physical inputs including paper used for printing belongs to the printer 18% with full Input Tax Credit (ITC) 12% with full ITC
    Services by way of printing of newspapers, books (including Braille books), journals and periodicals using physical inputs owned by others (including an unregistered publisher/supplier) 18% with full ITC 5% with full ITC
    Work contract services provided to the government, local authorities or government authorities and in respect of post-harvest storage infrastructure for agricultural produce, mechanised food grain handling system 18% with full ITC 12 % with full ITC
    Margin/commission payable to fair price shop dealers by central/state governments 18% with full ITC Nil
    Admission to planetarium 28% with full ITC 18% with full ITC
    Rent a cab service 5% GST – no ITC 12% GST - full ITC; and
    5% GST - no ITC
    Goods transport agency service 5% GST - no ITC 12% GST - Full ITC (Forward charge basis)
    & 5% GST - no ITC
  2. Legal services
    • In the meeting, it was clarified that a partnership firm shall include a Limited Liability Partnership firm.
    • Legal services including representational services provided to a business entity by an individual advocate, senior advocate or a firm of advocates shall be chargeable to tax under reverse charge mechanism basis.
  3. Anti-profiteering related
    A press release was released by the Press Information Bureau on 25 July 2017 clarified that a GST Council selection committee shall be formed for the purpose of appointing the Chairman and members of the National Anti-Profiteering Authority under GST.

    Furthermore, in its 20th GST Council meeting, it was decided that the anti-profiteering measures shall be kick started by appointing state wise committees.
  4. Other important points
    • Goods and/or services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries in connection with FIFA U-17 world cup which is going to be hosted in India in 2017 shall be exempted from GST.
    • The GST Council has in principle approved the rollout of e-Waybills. The exemption limit for not obtaining an e-Waybill may be increased from INR 50,000 to INR 100,000.
    • The GST Council is unlikely to change the tax rate structure for cab leasing services.
    • Taxpayers who have not filed Part B of their enrollment application can now seek cancellation of registration on the GST Portal; such taxpayers must log in with the chosen username for activated provisional IDs and opt for cancellation.
SKP's comments
  • The e-Waybills, when implemented, will help central and state tax authorities to keep an eye on factory output and inter-state commerce and provide data relating to consumption of goods, which may prove to be useful in policy making.
  • The constitution of the National Anti-profiteering Authority is expected to bolster consumer confidence and ensure all stakeholders reap the intended benefits of GST.
  • Till date, 4.4 million assesses have filed GST-3B returns. The Goods and Services Tax Network (GSTN) network is pushing hard to accommodate all the returns. The real test of the GSTN network would arise when the window for GSTR-1, 2 and 3 open up.
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