Reductions in GST Rate of Goods

28% to 18%

  • Pulleys, transmission shafts and cranks, gear boxes etc.
  • Monitors and TVs of up to screen size of 32 inches
  • Re-treaded or used pneumatic tyres of rubber
  • Power banks of lithium ion batteries
  • Digital cameras and video camera recorders
  • Video game consoles and other games and sports requisites

28% to 5%

  • Parts and accessories for the carriages for disabled persons

18% to 12%

  • Cork roughly squared or debagged
  • Articles of natural cork
  • Agglomerated cork

18% to 5%

  • Marble rubble

12% to 5%

  • Natural cork
  • Walking sticks
  • Fly ash blocks

12% to Nil

  • Music Books

5% to Nil

  • Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container
  • Vegetables, provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption

Reductions in GST Rate of Services

  • Cinema tickets above INR 100 – 28% to 18%
  • Cinema tickets up to INR 100 – 18% to 12%
  • Third party insurance premium of goods carrying vehicles – 18% to 12%
  • Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) – To be exempted under GST
  • Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements, shall now attract the same GST rate as applicable to similar flights in economy class – 5% with ITC of input services

Formation of GoM to study GST Revenues

The GST Council at the 31st GST Council meeting today, approved the proposal to form a 7-member Group of Ministers (GoM) to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the States. The study would include the underlying reasons for deviation from the revenue collection targets, as against the original assumptions discussed during the design of the GST system, its implementation and related structural issues.

The Group of Ministers will be assisted by the committee of experts from the Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning), who would study and share the findings with the GoM. The GoM in turn would give its recommendation to the GST Council. The members of both the GoM and the committee of experts will be announced later.

Staggered Roll-out of the New & Simplified GST Returns

The new and simplified GST return filing system shall be introduced on a trial basis from 1st April 2019 and on a mandatory basis from 1st July 2019, which we had predicted in one of our recent blogs.

Dates extension announcements

For Annual Returns

The due date for furnishing the annual returns i.e. Form GSTR 9, Form GSTR 9A and the reconciliation statement i.e. Form GSTR 9C for the Financial Year 2017-18 shall be further extended till 30th June 2019. Thus, businesses will now get 3 more months to file their annual returns.

For E-Commerce Operators

The due date for furnishing Form GSTR 8 by e-commerce operators for the months of October, November and December 2018 shall be extended till 31st January 2019.

For GST ITC-04

The due date for submitting Form GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31st March 2019.

Other important announcements of the 31st GST Council Meeting

  • Centralised Appellate Authority for Advance Ruling (AAAR) – This forum will be created to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue
  • Cement – No change in the GST Rate of Cement, as many had expected
  • Real Estate – Decision on GST taxability of Real Estate to be taken in the next GST Council meeting to be held in January 2019

Overall, all these recommendations are bound to improve life for the consumer as well as businesses, and as you read these, several forums are expressing their positive views on the decisions being taken. Stay tuned for more detailed information on other recommendations and updates from the 31st GST Council meeting.