GST Council in its 25th GST Council Meeting was chaired by Union Minister of Finance and Corporate Affairs, Mr. Arun Jaitley on 18th January 2018 at Vigyan Bhawan, New Delhi.
The Goods and Services Tax Council has recommended certain changes in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting to further improve the country's most comprehensive indirect tax reform since Independence.
1. The penalty for late filing of GST returns has been further reduced by the 25th GST Council Meeting. Now Penalty in case of late filing of GSTR 1, GSTR 5, GSTR5A is 50 Rs. Per Day. In case of failure to file NIL GST return, the penalty has been reduced to just Rs.20 per day
2. Person who opt Voluntary Registration now can surrender their Registration, before 25th Council Meeting they were not allowed to surrendered before the end of 1 year from the date of Registration
3. Government has started E-Way bill mechanism on trial basis through ewaybill.nic.in, when it will be fully operational e-way bill will start functioning on the portal www.ewaybillgst.gov.in
4. For Migrated Taxpayers last date of filing FORM GST REG-29 for cancellation of registration is extended by further 3 Months till 31st March 2018.
5. Rates of goods such as bio-diesel, packaged drinking water (packed in 20 litres bottle), drip irrigation system, mechanical sprayer, bio-pesticides, sugar boiled confectionery, etc. have been brought down to 12 percent from 18 percent.
6. Motor vehicle will now attract 18% tax from earlier 28%
7. Rice Bran will attract 0% tax from 5% earlier
8. Tax rate on velvet fabric has been reduced to 5% from 12%.
9. Tax rate on mining, drilling of natural gas has been reduced to 12%
10. Cess on vehicles for ambulance also reduced to 0% from 15% earlier.
11. In the services segment, the council will reduce taxes on transportation of crude, gasoil, gasoline, jet fuel and services relating to mining, exploration and drilling of oil and natural gas, among other things.
12. Diamonds and precious stones will now attract 0.25 percent GST instead of 3 percent, while vibhuti and de-oiled brown rice will attract nil tax.
13. The fitment committee will fix rates of 40 handicraft items
14. GST Council may in their next meeting decide requirement of filing only two returns i.e. GSTR 3B and GSTR 1 and may do away with GSTR 2 and GSTR 3.
Here is the complete list of Goods recommended for Change in GST Rates.
The Council had last met for 24th GST Council Meeting through video-conference in November 2017, wherein it took decisions regarding applicability of E-way Bill system in India. E-way Bill Rules is expected to be implemented on National Level for Interstate movement of goods starting from 1st February, 2018.
Use AI & ML powered OCR software or APIs to extract data from Invoices.