Various policy matter changes, Rate changes and clarifications were part of agenda in the 31st meeting of GST Council. We have prepared a gist of different items discussed and introduced for your ready reference. (For changes w.r.t Annual Compliances, refer next Blog)

Various policy matter changes, Rate changes and clarifications were part of agenda in  the 31st meeting of GST Council.

We have prepared a gist of different items discussed and introduced for your ready reference. (For changes w.r.t Annual Compliances, refer next Blog) 

1. Changes in rates of various goods and services:

Sr No.	HSN Code	PRODUCT	REFERENCE	OLD RATE	NEW RATE
1	998554	Cinema tickets	Upto Rs. 100	18%	12%
			Above 100	28%	18%
2	997134	Third party insurance premium of goods carrying vehicles		18%	12%
3	996339	Supply of food and drinks provided by an educational institution	To persons other than its students, faculty and staff		5%
4	84831010	Pulleys, transmission shafts and cranks, gear boxes etc., falling		28%	18
5	85287211	Monitors and TVs of upto screen size of 32 inches		28%	18
6	40121100	Re-treaded or used pneumatic tyres of rubber;		28%	18
7	85065000	Power banks of lithium ion batteries		28%	18
8	85065000	Lithium ion batteries		18%	18
9	85258020/ 85258010	Digital cameras and video camera recorders		28%	28%
10	95042000	Video game consoles and other games and sports requisites		28%	18
11	87131010	Parts and accessories for the carriages for disabled persons		28%	5
12	45020000	Cork roughly squared or debagged		18%	12
13	45041010	Agglomerated cork		18%	12
14	45020000	Natural cork		12%	5
15	66020000	Walking Stick		12%	5
16	68159910	Fly ash Blocks		12%	5
17	49040000	Music Books		12%	Nil
18	Series 6401-06	footwear (types to be clarified)		18%	5%/18%
19	63053200	Flexible Intermediate Bulk Container (FIBC)			12%/5% depend on value
20	995426	Services of construction etc and other goods for solar power plant.			5
21	2303-1000/2000/3000	The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44		12%	12%
22	HSN Code series - 5408	Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP		5%	18%
23	44011010	Wood logs including the wood in rough/log used for pulping.		5%	18%

 

2. List of Goods and Services exempted in 31st Meeting:

In addition to the rate changes, certain goods and services as described below have been exmped from GST:

1. Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container
2. Vegetable 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.
3. W.e.f. 31.01.2018, degrees/ diploma awarded by IIMs under IIM Act, 2017
4. Services provided by IFC and ADB in terms of provisions of IFC Act, 1958 and ADB Act, 1966.
5. Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)
6. Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at medical establishments, educational institutions, rehabilitation centers established byCG/ SG or UTs or charitable entities registered u/s 12AA of Income-tax.
7. Services provided by GTA to Government departments/local authorities which have taken registration only for the purpose of deducting tax under Section 51 and no reverse charge shall apply
8. Services provided by CG/SG/UTs to their undertakings or PSUs by way of guaranteeing loans taken by them from financial institutions
9. Supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
10. Proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
11. Vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
12. Movement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for further supply of such goods but for the provision of service does not involve a supply (e.g., movement of testing equipment etc.)

3. Clarifications w.r.t taxability of certain goods and services

1. Photographic and videographic processing services to fall under HSN Code: 998386 taxable @18%
2. Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements to be taxable @ 5% like economy class
3. Leasing of pumps and reservoirs by the OMCs to petrol pump dealers is a mixed supply and the Licence Fee Recovery (LFR) to be taxable @ 28%
4. Leasing of land and buildings along with equipment shall fall under heading 9972 (real estate services), thereby taxable @ 18%
5. Sprinkler system consisting of nozzles, lateral and other components to be taxable @12%
6. A Banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent
7. Security services (supply of security personnel) provided to a registered person, except Government Departments which have taken registration for TDS and entities registered under composition scheme, shall be put under RCM.
8. Services provided by unregistered Business Facilitator (BF) to a bank and agent of Business correspondent (BC) to a BC shall be put under RCM.
9. Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
10. Renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) to be taxable @

4. Certian Clarifications in addition to the rates

There have been ambiguity w.r.t. taxability and determination of value for certain goods and services. A few of them have been clarified for seamless charge of GST: 

1. Determination of whether making supply of food, drinks and other articles for human consumption is a supply of goods or services shall not be made by establishment making such supply but depend on the constituents of each individual supply and whether same satisfies the conditions / ingredients of a “composite supply‟ or “mixed supply‟.
2. Fabric whether embroidered or has stitching of lace and tikki etc., or sold in three piece fabric as ladies suit set, will be classifiable as fabric

3. Turbo charger is classified under heading 8414 taxable @18% instead of 5%.

4. Clarification regarding GST rate where goods attracting 5% rate are supplied with services of construction and other goods for solar power plant: In all such cases, 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.
5. GST rate of 5% to be applicable on LPG supplied in bulk to an OMC by refiners/fractioners for bottling for further supply to household domestic consumers.
6. Manure of determination of classification of vitamins, provitamins etc. as animal feed supplement
7. Scope of concessional rate of 5% GST rate for specified equipment for waste to energy plant will be clarified via notification in gazette
8. Parliament and State legislatures shall be extended the same tax treatment with regard to payment of tax under RCM (reverse charge mechanism)as available to Central and State Governments.

There has been a radical change in taxation system of country post introduciton of GST and regular steps are being taken to simplify the issues and remive ambiguties.

We have tried to summarise each and every amendment/ clarification that was discussed in the meeting. Kindly reach out to us at info@taxtellers.com in case you have ay doubt w.r.t matter discussed above or any tax or finance related matter. 

Regards,

TheTaxTellers Team