GST latest updates on tax

rates – GST Registration in

Coimbatore

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GST council made the most awaited
announcement about the tax rates on
various categories in the month of
18th January 2018.

There has been hype around these rates

for a while and now these rates are
finally in the public domain.

GST rates already have created a huge wave of curiosity across the trade bodies
and industry when it got announced.

Everyone is evaluating their position as a result of this change.

Note that exemptions, rate changes and other proposals made shall be given
effect once the notifications are issued for the same.

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 Key decisions are taken in the 25th council meet:

• Cancellation of registration by voluntary registrants can be applied before the expiry of 1

year from the date of registration.

Late fee reduction:

• For GSTR-1, GSTR-5, GSTR-5A, and GSTR-6, the late fee has been reduced to Rs.50 per
day.

• If the Nil return is filed for GSTR-1, GSTR-5, GSTR-5A, the late fee has been reduced to
Rs.20 per day.

On the successful implementation of e-way bills, the e-way bill portal has been shifted to
ewaybillgst.gov.in

Recommendations which are made by the handicraft committee have been accepted by the
council. The rate considerations will be worked out later.

GST rates for 29 goods and 53 services have been reduced.

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GST rate changes for goods:
Nil rated goods:
• Parts and accessories for the
manufacturing of hearing aids.
• Vibhuti
• De-oiled rice bran.
Rates reduced from 28% to 12%:
• For an old and the used motor
vehicle (other than the medium
and the large cars and SUVs)
with a condition that no input tax
credit is availed.
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Rate changes from 28% to 18%:
• Old and the used motor vehicle (medium,
large cars, and SUVs) with a condition that
no input tax credit is availed.
• Public transport buses which run on
biofuel.
Rates reduced from 18% to 5%:
• Consumables and raw materials
needed for launch satellites,
vehicles, and payloads (both CGST
and IGST rates).
• Mehendi paste in cones.
• Tamarind kernel powder.
 Rates reduced from 18% to 12%:

• Biodiesel
• Drinking water in 20 litres bottles.
• Mechanical sprayer.
• Fertilizer grade phosphoric acid
• A certainly listed bio-pesticides
• Bamboo wood building joinery
• Drip irrigation system includes the
sprinklers, laterals.

Rates reduced from 12% to 5%: Rates reduced from 3% to 0.25%:

• Velvet fabric (with a condition that no • Diamonds and

refund has been claimed on ITC).
• Precious stones.
• Articles of esparto, straw or of other
plaiting materials.

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Rates increased from 12% to 18%: Rates increased from 0% to 5%:
Cigarette filters rods. Rice bran oil

Compensation cess has been reduced to 0% for the following motor vehicles:

• Old and the used motor vehicles (medium and the large sized cars) with a condition
that no input tax credit is availed.

• Old and the used motor vehicles (other than medium and large cars and SUVs) with
a condition that no input tax credit been availed.

• A vehicle which is cleared as an ambulance (i.e. it should have all the necessary
accessories in the ambulance).

• 10-13 seater buses and the ambulances with the specified conditions

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GST rate changes for services:

• GST rate at 5% on the small housekeeping service providers which is notified under
the section 9(5) of the act provides the housekeeping services through ECO without
availing the input tax credit.

• GST rate of 28% on the actionable claim in the form of a chance to win in gambling,
betting which also includes horse racing.

Reduction rates:

28% to 18%:

Services by way of admission to water parks, joy rides, theme parks, merry-go-rounds, go-
karting and ballet

18% to 5%:

• Without ITC credit, transportation of petroleum crude and products.

• Tailoring services.

• Job work services for the manufacturing of leather goods.

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 Exempted services list and the related changes:

• Legal services provided to the local authority,

government, governmental entity, and authority.

• Transportation of goods from India to a place

outside India by air or sea until 30thSeptember
2018.

• Dollar-denominated services provided by financial

intermediaries located in IFSC SEZ, which have
been deemed to be outside India under the various
regulations by IRDAI, RBI, SEBI or any financial
regulatory authority to a person outside India.

• Pure services provided to a government entity by a

Panchayat or municipality. Composite supply
involves the predominant supply of services (i.e. up
to 25% of the supply of goods) are also exempted.

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Lease of land:

• By local authority or government to a governmental authority or government entity.

• Supply as a part of the specified composite supply of construction of flats etc.

• Admission to or conduct of examination provided to all the educational institutions

including any service of conducting the entrance examinations on a collection of
entrance fees.

Reinsurance schemes with respect to the following schemes:

• General insurance business provided under the schemes such as Pradhan Mantri
Suraksha Bima Yojna and others listed in the notification 12/2017 – CGST rate.

• Life insurance business provided under the schemes such as Pradhan Mantri Jan
Dhan Yojana and others listed in the notification 12/2017-CGST rate.

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• Services by way of fumigation in a warehouse of agricultural produce.

• Services of admission to the planetarium where consideration charged are below Rs.500.

• Subscription of online educational periodicals/journals by educational institutions that

provide degree which is recognized by any law.

• Renting of transport vehicles to a person providing services of transportation to an

educational institution (students, faculty, and staff) provides education up to higher
secondary or equivalent.

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 Changes in the exemption limits in the following cases:

• The exemption limit of Rs.5000 per month per

member in respect of the services which is
provided by resident welfare association
(unincorporated or non-profit entity) to its
members against their individual contribution
that is enhanced to Rs.7500.

• The exemption limit of the amount of the cover

of Rs.50, 000 which is enhanced to Rs.2 lakhs in
respect of services of life insurance business
provided under life micro insurance product
approved by IRDAI.

• The exemption limit of Rs.250 for services that

all theatrical performances like music, drama,
orchestra, dance, folk or classical arts and all the
other activities in any Indian language in theatre
increased 500 per person.

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http://www.onlinecompanyregistration.in/gst/gst-registration-coimbatore.php