Council came into force on 12" September, 2016. T Council on 15" September, 2016. nance Minister is the | Ministers in charge x * The provisions relating to President constituted the © The Union hairman of this Count Ee of Finance/ Taxation or any other Ministers nominated by each of the States & UT's E with Legislatures are its members. Besides, the Union Minister of State in charge of . Revenue or Finance is also its member. * The function of the council is to make recommendations to the Union and the States ‘on important issues like tax rates, exemptions, threshold limits, dispute resolution c etc, The GST council has decided the threshold exemption, composition threshold, foo. GST rates, GST legislation: including rules and notifications. te ed > leviaAs per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the ed President within 60 days of the commencement of Article 279A. The notification for bringing into force Article 279A with effect from 12th September, 2016 was issued on 10th September, 2016. tas The Goods & Services Tax Council (GST Council} has been created in September 2016 under Article PS* 9794 ofthe Constitution of India. The main objective of GST is to develop a harmonized national |per, Matketofgoods and services. thas its Secretariat office in New Delhi. ) Btetnbes composion ‘The following persons shall form composition of GST Council and its Meetings: The Union Finance Minister - Chairperson The Union Minister of State, in-charge of Revenue of finance #90° Finance Ministers of Each individual State in India 2), lecte. The decisions of the GST Council are made by chree-fourth majority of the vates cast. The centre has andthndoftheyatescast and the sites tagetherh ve two-third of the votes cast. Each state has one fica 2 vote, respective of its size or population: 7 pp th: APart from the above: aw. © The Secretary (Revenue) will be appointed as the Ex-officio Secretary to the GST Council. ama * The Chairperson, Central Board of Excise and Customs (CBEC), will be included as a permanent invitee (non-voting) to all proceedings of the GST Council fcor * One post of Additional Secretary to the GST Council in the GST Council Secretariat (at the level of Additional Secretary to the Government of India) will be created. * Four posts of Commissioner in the GST Council Secretariat (at the level of Joint Secretary to the Government of India) will also be created. GST Council Meeting Chairman & Head: The Union Finance Minister shall be the Chairman of GST Council Meeting and also the Head. The current FM is Arun Jaitley, and therefore, we can say he is the Head and Chairman of a GST Council Meeting. i ic! Senior {AS officer Arun Goyal has been appointed as Additional Secretary in the Goods and Services Tax of Council. Goyal a 1985 batch IAS officer of Union Territory cadre, is at present working as Additional Monitoring Group, Cabinet Secretariat.DF ots ana services tax, Composition of GST Council Secretariat: G states Value Added Tax officers are being t BE Functions of st council ‘ ates On As per Article 279A (4), the Council will make recommendations to the Union and the St important issues related to GST, like Taxes, cesses, and surcharges to be subsumed under the GST; Goods and services which may be subject to, or exempt from GST; ‘T council secretariat to have all IRS officers: -ained by IRS officers all over the country: The threshold limit of turnover for application of GS1 * Rates of GST; Model GST laws, principles of levy, apportionment of IGST and principles related to place of supply; Special provisions with respect to the eight north eastern states, Himachal Pradesh, Jammu and Kashmir, and Uttarakhand; and * Other related matters. GST rates will include the floor rates with bands, special rates for raising additional resources during natural disasters / calamities, special provisions for certain States, etc. GST Council is proposed as a statutory body empowered to make recommendation on almost all issues relevant to the smooth implementation of GST. These include making recommendations on: (| Taxes, cesses, and surcharges that are levied by the Central Government and States that are to be | subsumed in the GST (ii) __| Goods / Services that would be covered / exempted from GST (iit) | Model of CGST / SGST and IGST legislation (iv) _| Apportionment of IGST between the Centre and the States (¥) _| Determination of Place of supply ‘Threshold limit of turnover below which GST is exempt Rates / Floor rates band wn | gece yates to raise additional resources during any natural calamity; ial provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur Mo n, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; Bhalaya, As per Article 279A (4), the Counc) important issues related to GST, 1 a eee ms+ Threshold limits. ST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters or RNR + Special provisions for certain States, ete. + Transition Provisions + GST Council would also decide when GST would be levied on petroleum products initially kept out of GST. + The GST council is vested with powers to regulate all aspects relating to GST, though the roll is only recommendatory. * The GST Council may also decide upon the modalities for the resolution of disputes arising out of its recommendations. Quorum and Decision-Making * Fora valid meeting of the members of GST Council, at least 50 percent of the total number of the member should be present at the meeting. + Every Decision made during the meeting should be supported by at least 75 percent majority “of the weighted votes of the members who are present and voting at the meeting. In “article 279A" a principle is there hia dies the total weighted vote cast between Central Government and State Government > The vote of Central Government shall have the weighted of one-third of the total votes > The votes of State Government shall have the weighted of two third of the total votes, cast in the meeting * Anyact, decision or proceedings shall not be declared as invalid on the basis ofany remaining deficiency at the time of establishment of GST Council ie. > ifthere is any vacancy remained in the Council > ifthere is any defect in the constitution of Council > if there is any defect in the appointment of a person as a member of the Council > ifthere is any procedural non compliance. _.9\) rev Wiheitecent Decision of cst Counc, l First Meeting: 22nd September to 23 September, + Threshold Limit in GST: Rs20 lac & Rs10 Lac for North Eastern States | * The threshold for availing the Composition scheme would be RS.50 lakhs, Service providers would be kept out of the Composition scheme. * Dual Control & Assessment of Assesses Assesses having turnover below Rs. 1.5 Cr to be assessed by state officials and those above Rs. 1.5 Cr to be assessed by officials of the state as well as the centre. 1.1 million service tax assesses will continue to be assessed by the officials of the centre. Sl T—F—TllES i00s ana services tax ing: 30th September 2016 Carn « Approve GST Draft Rules and Formats: Approval of the Draft Gs Payment, Return, Refund and Invoice, Debit & Credit Notes with the undersea tap that minor changes may be permitted with the approval of the Chairperson, if required, due &@ suggestions from the stakeholders or from the Law Department + Compensation to states: To compensate States for years for loss of revenue due to implementation of GST, the base year for the revenue of the State would be 2015-16 and a fixed growth rate of 14% will be applied to it * Existing Exemptions: All entities exempted from payment of indirect tax under any existing tax incentive scheme would pay tax in the GST regime and the decision to continue with any incentive scheme shall be with the concerned State or Central Government. In case any State Government or Central Government decides to continue any existing exemption/incentive scheme, it will be administered by way of a reimbursement mechanism, Third Meeting: - 17th October 2016 to 19th October 2016 * GST Rates and slabs were proposed ST Rules on Registration. Also, the formula for the Centre compensating loss of revenue to states, 3-4 alternatives were discussed, but a decision could not be reached EKO oe ce Cu me a @ + GST Rates and slabs decided: Bands of rates of goods under GST shall be 5%, 12%, 18% and 28% and in addition there would be a category of exempt good be levied on certain goods such as luxury cars, aerated drin Products, over and above the rate of 28% for payment of comper Further, a cess would pan masala and tobacco ation to the State Fifth Meeting: - 2nd December 2016 to 3rd December 201 The meeting turned out to be inconclusive, as the imp. continued. ‘Sixth Meeting: - 11th December 2016: The Council had a detailed discussion on the Model CGST and SGST lenis which was released in the public domain on 26 November 2016, Th” asse over the is: of assessee jurisdiction slation (Model GST Law) The council deliber section 99 of the Model GST Law out of the 197 sections ieiccuncl deliberated upto aii Gen ee ea ee ont rs Members debated over the provisions of the draft Central/state legislation th mentioned above and parked the contentious issue of cross-empowerment for ie LBlslations Finally, by the end of the meeting, the council reached a broad consensus on the upan cond ay and state GST Legislations ‘aft of Central Eighth Meeting: - 03rd January 2017 to 4th January 2017: | * No consensus has been achieved on ‘Dual Control’, | * States demanded taxation rights for sales made in the high seas (within 12 nauticay i Furthermore, the states requested the "T Council to increase the number of tems gp MHles), lich ;Innroducion STD this new Cess is to be levied. The Cess has been additionally proposed to compensate the states for their revenue loss (estimated at INR 900 billion). + Accordingly, the GST Council assured that the Cess will be levied on a list of commodities notified by the GST Council. At the end of year five, this Cess will be merged with the GST rate or divided between the Centre and states, as the Council decides. Ninth Meeting: 16th January 2017: + Dual Control of Center and State Government in GST Assessment: Under the proposed tax regime, 90% of all assessees with a turnover of Rs 1.5 crore or less will be assessed for 2 scrutiny and audit by state authorities, the remaining 10% by the Centre. Assessees with a ; turnover above Rs 1.5 crore , Centre and states will assess in a 50:50 ratio + Resolving of IGST Dispute under GST: Any IGST disputes among states will be resolved by the Centre. + Taxation Rights under GST in Territorial waters extending to 12 nautical miles: Territorial waters extending to 12 nautical miles fall under control of the union government but as per convention, states will be empowered to collect tax on any economic activity in this zone CSUN ecient n es 1€ _« Formally approved Compensation law ‘or __ Some of the issues in CGST/SGT/IGST laws were discussed, final version of law (CGST/SGST/ Dat IGST)shall come on next meeting 4th & Sth March Eleventh Meeting: 4th March 2017 * The council cleared the crucial CGST and IGST Bills. ict!» Hotels with annual turnover of less than 50 lakhs, will pay the lowest tax rate of 5% under the GST regime, © The assignment of tax slabs for different categories of goods and services will be taken for F redressal in the next GST council meeting a Wiay Twelveth Meeting: 16th March 2017 * State GST Bill and Union Territory Bill have been given approval by the Council, * The Council also approved the bound rate of 15% as peak rate for the proposed Cess to be F levied on certain demerit goods. jatio® d dz ° ‘The bound rate for aerated drinks and luxury car has been kept at 15% while the same will be 135% for the ent a pan masala. For tobacco it is going to be 290 per cent or € 4170 per 1000 ticks, * The Council also gave its nod for formation of a Committee to look into the issues of Meta Permit to be given for the movement of goods laden trucks in the GST regime. * Formal approval to all the five legislations has been given by the Council. mile’ _* The five draft laws will be sent to the cabinet for approval and subsequently to Parliament.meee [ input tax credit rules, valuation rules, transitional provist Cie eee ela # Discussed four set of rule: and composition rules. * Approved rules on registration, return, eek payment, refund, invoice, debit and credit. Qian « Approved GST rates for goods and GST Compensation Cess. « fitment of rates of goods were discussed during the Council meeting. Fifteenth Meeting: 3rd June, 2017 * Council cleared the pending rules, including transition provis w tax regime. jjons and returns, « Allthe states agreeing to a July 1 rollout of the ne ‘Sixteenth Meeting: - 11th June 2017 * Council revised 66 items rates out of 133 representations + Council finalize accounting rules. Seventeenth Meeting: 18 June 2017 + first 2 months: A summary return form in GSTR-3B will Relaxation in Return filing time-line fo! e. Jul and Aug by 20th day of next required to be filed on self-declaration basis for first 2 month i c eaith Le for the month of July, a summary return needs to be filed by 20#h aughst after paying appropriate taxes, and for the month of August, the same needs 10 filed by 20th Sep. » GSTTRA with invoice level details needs to be filed for the month of July by Sth September, wei for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter. = 28% limit in hotels will start from Rs.7,500; b/w Rs on restaurants in these hotels will be at par with ot 2,500- Rs.7,500 the rate will be 18%. GST her air-conditioned restaurants (18%). + Cleared all six Rules: > Advance Ruling, > Appeals & Revision > Assessment & Audit > eWay Bill, > Ananti-profiteering > Anti-profiteering body will be setup for 2 years State run lotteries will be taxed at 12% of the face value and state authorised lotteries at 28%. The official launch of the GST will take place on the midnight Delhi. ‘The Next Council Meeting to be held on 30th June before July 1 rollout of GST. # GST Network will launch an offline excel sheet return format on June 25. of 30th and 1st at a function in lisi B Ww ayi mb sw 3%) es of Intioduction 6 CST ED CPS ee eet ea The last GST Council Meeting before the final GST Rollout was held today at Vigyan Bhawan at New Delhi today. The major highlights of the meeting are: + The tax rate on fertilizers have been reduced to 5% from previously decided 12% * Tax rate on Exclusive parts of tractors has been cut to 18% from 28% The GST, which unifies more than a dozen central and state levies like excise duty, service tax and VAT, will be implemented from midnight tonight, GST Tax Rates in India: GSTNil rate (0%): No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi, Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom etc. GST 5% Items List: Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 percent. GST 12% Items list: Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, and cellphones will be under 12 per cent tax slab, GST 18% Items List: Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant {ood mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors. GST 28% Items list: Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers foated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramictiles, waterheater, dishwasher, weighing machine, ashing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, reporeveles, aircraft for personal use, and yachts will attract 28 per cent tax - the highest under GST system. fertain Precious metal like Gold, silver, platinum ornaments, precious stones and bullions are taxed at special rates - 3%, > Fon AMENDMEN Bee The Amendments made in the Constitution related to GST is called Constitution (101st Amendment) Act, 2016. Itshall come into force on such date as the Central Government notifies in official Gazette, Insertion of New Article 246A: The Article 246 gives power to Union and State government to make the law relating to matter covered under List 1 (Union List), List II (State List) and List III poreiert List). The Article 246A(1) gives right to parliament and the legislator of every state can aaa ie law inrespect of goods and service tax to be imposed by central or state government. This ead rious Subsume the taxes like Excise duty, Service tax, Central Sales tax at Central level Entry tax, Entertainment tax etc. at State level. |e