37th GST Council Meeting Highlights
The 37th GST meeting headed by Union Finance Minister, Nirmala Sitharaman was held in Goa, Panaji on 20th September. The meet also included representatives from all the states and Union Territories. The meeting was primarily held to bring in new policies that will boost the dropping economy. The recession and slowdown faced in various sectors from automobile to biscuit producing factories; there was a need to revise the figures of the taxes imposed.
The following changes were made which will be in effect from 1st October 2019.
- GST Council suggests lower 12% cess on 1,500 cc diesel, 1,200 cc petroleum vehicles with the ability to convey up to 13 individuals.
- Group protection plans for paramilitary powers under the Home Affairs service to be absolved from GST.
- GST rate on beverages that are caffeinated rose from 18% to 28% with 12% remuneration cess.
- Uniform GST pace of 12% to be imposed on polypropylene sacks and sacks utilized for pressing of merchandise.
- GST excluded on determined protection merchandise not made in India.
- The rate imposed on cut and cleaned semi-valuable stones has been dropped from 3% to 0.25%.
- Jewelry fares to now pull in zero GST. The diamond job will see a fall from 5% to 1.50%.
- Other jobs will witness a drop from 18% to 12%.
- GST on fishmeal utilized by anglers being absolved from July 2017 to September 30 this year. There was the absence of clearness on their GST inclusion and no expense was gathered so that has been settled.
- Aerated beverages makers will not be under the organization conspire any longer.
- Uniform GST pace of 12% to be imposed on polypropylene packs and sacks utilized for pressing of products.
- GST rate climbed on railroad wagon, mentors from 5% to 12%.
- Rate decrease on lodging convenience administrations.
- Food products like almond milk will be now available with added GST of 18% and dried tamarind will be now tax-free.
- For Transaction esteem per unit every day of ₹1000 or less, will draw in nil GST. For ₹1001 up to ₹7500, presently the duty rate will be 12%. Anything above ₹7501 will pull in 18%. It was 28% until now.
- Job work administrations identified with precious stones decreased from 5% to 1.5%. For machine, occupation works in designing industry, GST down from 18 to 12. However, transport lifting weights works still burdened at 18%.
- The current tax on plates and cups made up of leaves, flowers, and bark is 5% will be nil from 1st
- The services provided in railway wagons and coaches (without refund of accumulated ITC) are currently at 5% which will be raised to 12% from 1st October 2019.
- The outdoor catering provided will reduce from 18% to 5%.
Products and supplies to FIFA- U17 Women Football players and specified persons, Supply to the Food and Agriculture Organization (FAO) for important projects. Imports of certain defense merchandise not made indigenously (up to 2024), Supply of silver/platinum by indicated offices (Diamond India Ltd) for fare and Import of Silver or Platinum by indicated offices (Diamond India Ltd).
The other aspects were also discussed that will affect the Indian market and economy to a large extent. This includes taxpayers for FY 2017-18 and 2018-19 will be now waived by GSTR 9A. This will be executed by a committee that will review the simplification of GSTR-9A and GSTR-9C. Exemption on fish meal and agricultural machinery for a specific period of time. The post-sale discount treatment has been decided to be taken back. The committee also decided restriction should be imposed on ITC claim until GSTR-1 has been filed.
The following products stored at a warehouse or at storage units are exempted from GST as per the 37th GST Council Meet –
- Nuts and vegetables
Raw vegetable fibers
- Betel leaves
- Tendu leaves
- Coffee and tea
Conditional Exemption of GST on export freight by sea or air has been extended till 30.09.2020 (one more year).
All these issues that have been discussed and the new implementations have a huge potential to boost the Indian economy to a large extent. Let’s wait for the commencement.
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