TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 28-9-2019 - - During last one month, there have been five major announcements by Union Finance Minister offering tax sops, economic reliefs and credit / export related measures which ensures ease of doing business in ongoing economic recession. All such measures are other than GST. In its latest move, corporate income tax rates have been slashed, from 30% to 22%, from 25% to 15% for new companies and MAT from 18.5% to 15%. This led to unprecedented upsurge in stock indices too. Such measures are expected to revive the ailing industry and support GDP growth. While these moves are considered bold, fiscal management would remain a challenge. Now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income tax rate India is below the global average of 23%. The 37 th meeting of GST Council was held on 20 th September, 2019 at Goa where in several taxpayer friendly measures have been announced which inter alia include GST rate reduction on hotels, few exemptions, lower rate on diamond related job works and outdoor catering, measures to boost export, few clarifications and relaxation in filing annual returns etc. However, no change has been made in audit requirements. It has been assured that GSTR-9 returns will be further simplified and that new returns shall be made applicable from next fiscal. Decisions taken at 37 th GST Council meeting at Goa on 20.09.2019 GST Council in the 37 th meeting held on 20th Septem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 2019 (Friday) at Goa inter-alia, decided to lower GST rates on hotel tariff, outdoor catering and other miscellaneous items. Hotel / Restaurant / Catering GST Rates on hotel room tariffs A comparative analysis of the rates earlier and rates proposed is as follows: S.No. Transaction Value per Unit (Rs) per day Present GST rate Proposed GST rates w.e.f. 01.10.2019 ₹ 1000 and less Nil Nil ₹ 1,001-2,500 12% 12% ₹ 2,50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-7,500 18% 12% ₹ 7,501 and more 28% 18% GST Rate on outdoor catering S.No. Particulars Present GST rate Proposed GST rates w.e.f. 01.10.2019 Institutions other than in premises with daily room tariff of ₹ 7,500 or more 18% with ITC 5% without ITC Catering in premises with daily tariff of unit of accommodation being ₹ 7501 and above 18% with ITC 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % with ITC GST Rate on caffeinated drinks (including energy drinks) Increased to 28 per cent from 18 per cent. Additional 12 per cent compensation cess would also be imposed on such beverages. Present GST rate Proposed GST rate w.e.f. 01.10.2019 GST rate Compensation Cess Total 18 percent 28 percent 12 percent 40 percent GST rate reduction on other items Item Present GST Rate Proposed GST rate w.e.f 01.10.2019 Dried tamarind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% Nil Plates and cups made up of leaves / flowers / bark 5% Nil Insurance To exempt BANGLA SHASYA BIMA (BSB) crop insurance scheme of West Bengal Government. To exempt services of life insurance business provided or agreed to be provided by the Central Armed Paramilitary Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the respective Group Insurance Schemes of these Central Armed Paramilitary forces. Export promotion To exempt services provided by an intermediary to a supplier of goods or recipient of goods when both the supplier and recipient are located outside the taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e territory. To issue a notification under Section 13(13) of IGST Act notifying the place of supply of specified R D services (such as Integrated discovery and development, Evaluation of the efficacy of new chemical/ biological entities in animal models of disease, Evaluation of biological activity of novel chemical/ biological entities in in-vitro assays, Drug metabolism and pharmacokinetics of new chemical entities, Safety Assessment/ Toxicology, Stability Studies, Bio Equivalence and Bio Availability Studies, Clinical trials, Bio analytical studies) provided by Indian pharma companies to foreign service recipients, as the place of effective use and enjoyment of a service i.e. location of the service recipient. To clarify that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he place of supply of chip design software R D services provided by Indian companies to foreign clients by using sample test kits in India is the location of the service recipient and section 13(3)(a) of IGST Act, 2017 is not applicable for determining the place of supply in such cases. Miscellaneous To allow the registered authors an option to pay GST on royalty charged from publishers under forward charge and observe regular GST compliance. To notify grant of liquor licence by State Governments against payment of license fee as a no supply to remove implementational ambiguity on the subject. To exempt services related to FIFA Under-17 Women's World Cup 2020 similar to existing exemption given to FIFA U17 World Cup 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Other decisions Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%. Council amended rules regarding Refund by Appellate Authority. Council amended rules regarding GST Practitioners and Consumer Welfare Fund. GST Annual Returns GSTR-9 , 9A Optional for those with turnover upto 2cr for FY 17-18 18-19. Those with turnover above 2crore to still file GSTR-9 . No relief in case of GSTR-9C as its applicable only where turnover exceeds 2 crore. GSTR-9 also to be made Saral . Exemption to Fishmeal for the period 01.07.17 to 30.09.19. There were doubts as regards taxability of fishmeal in view of the interpretational issues. However, any tax collected for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is period shall be required to be deposited. Mere heating of leguminous vegetables (gram/lentil) for removing moisture, or to soften and puff it or removing the skin, and not subjecting to any other processing or addition of any other ingredients (salt, oil etc.) would be classified under HSN Code 0713. Almond milk is classifiable under HSN code 22029990 and attracts GST rate of 18%. It is proposed to defer the implementation of new return system from April, 2020. To increase the validity of conditional exemption of GST on export freight by air or sea by another year, i.e. till 30.09.2020. To exempt prospectively services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee and tea. (Note: The GST rate changes shall be made effective with effect from 1 st October, 2019 after being notified) The recent recommendations are welcome and shall ensure better compliance, relief to taxpayers and customers and were need of the hour. - Reply By Ganeshan Kalyani as = Govt is taking steps to support the business. Exempting taxes, reducing tax rates to support the industries. Changes in GST are based on the recommendations made to the Council by the industries. One of the notable support of the govt is exempting the tax on fish meal. The whole feed industries, fishermen a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd traders are benefited by this move. On compliance front the new return is postponed to Arpil 2020 giving the tax payer enough time to prepare for it. The move is for the apparent reason that annual return and audit for fy 2017-18 2018-19 has to be completed. Nice write-up Sir. Dated: 29-9-2019 Reply By KASTURI SETHI as = Sir, Thanks a lot for such useful article. Dated: 30-9-2019 Reply By Dr. Sanjiv Agarwal as = Thanks, Mr. Kalyani and Mr. Sethi. What ever I can contribute, I am making small effort. Mr. Kalyani, I agree with your views. Sanjiv Agarwal Dated: 30-9-2019 Reply By KASTURI SETHI as = Dear Sh.Ganeshan Kalyani Ji, Dr.Sanjiv Agarwal, Sir has agreed with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your views. It is recognition of your knowledge.You have earned kudos from a luminary on GST. Bravo to you ! K.L.SETHI Dated: 30-9-2019 Reply By Ganeshan Kalyani as = I am grateful to receive such complement from esteemed person Sri Sanjiv Sir. I am also thankful to Sri Kasturi Sir. You both are inspiration to me. Thanks Dated: 30-9-2019 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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