GST Returns

GST Rates 2019: Updated Tax Slabs after 37th GST Council Meeting

GST is a game changing reform for the Indian Economy as it brings uniformity in the taxation structure. It is a consumption-based indirect tax charged on sale, manufacturing and consumption of goods and services. Recently in a meeting held at Goa, GST Council has brought changes in GST Rates to improve the condition of country’s economy. GST has a dual tax system comprised of:

• Central GST or CGST- To be charged by Central Government
• State GST or SGST-To be charged by the State Government
• Integrated GST or IGST- To be charged by the Central Government on the inter-state supply of various goods and services

The GST council meets time to time to update the GST Rates of products. Suggestions are taken from different states and industries recommending a reduction in GST for various products. Recently 37^th GST council meeting was held on 20^th September in Goa. Finance Minister of India chaired the meeting. Several decisions were taken at the meeting which includes relaxations in annual return filing, rate revisions, new GST exemptions etc.

List of GST Rates Changes after 37^th GST council meeting

The GST Council had its 37^th meet held at Goa on 20^th September 2019. The council came out with several announcements that would hopefully lift the economy which presently seems to be in shambles. The GST Council announced major cuts in taxes of 27 items and a slight relief to small businesses. Following are some of the items which are going to be cheaper under GST as decided in the meeting.

Item	Present GST Rate	New GST Rate
Mangoes sliced dried	12%	5%
Khakra and plain chapati/roti	12%	5%
Packaged Foods	18%	5%
Namkeens	12%	5%
Ayurvedic, Unani, Homeopathy medicines	12%	5%
Poster Colour	28%	18%
Modelling paste for children amusement	28%	18%
Plastic Waste,Pairing & scraps	18%	5%
Rubber waste, Pairing&scrap	18%	5%
Hard Rubber Waste	28%	5%
Paper Waste&scrap	12%	5%
Duty credit scrips	5%	NIL
Sewing thread of manmade filaments	18%	12%
All Synthetic Filament yarn, such as nylon	18%	12%
All artificial filament yarn, such as viscose-rayon	18%	12%
Sewing thread for manmade staple fibres	18%	12%
Yarn of manmade staple fibres	18%	12%
Real Zari	12%	5%
Floor Tiles	28%	18%
Cullet or other waste of glass	18%	5%
E-waste	28%/18%	5%
Biomass briquettes	18%	5%

The 37^th GST Council Meeting came out with significant announcements.  Some of the decisions made at the meeting are as follows:

Waiver of GSTR-9A for Composition Taxpayers for FY 2017-18& FY 18-19

Composition dealers have been granted exemption from filing of annual returns in GSTR-9A for the fiscal years 2017-18 and 2018-19.

GSTR-9 for small taxpayers not compulsory for FY 2017-18&18-19

Taxpayers having an annual turnover of up to Rs 2 crore in FY 2017-18 or FY 2018-19 may choose to not to file GSTR-9, from the dates which would be notified by CBIC. However, they will have to continue to file annual returns for FY 2019-20 onwards. Large taxpayers should continue to comply with the procedure of annual tax filing. They are expected to close annual return filing both in GSTR-9 and GSTR-9C by 30 November 2019.

New GST returns delayed to April 2020

The new GST return system will apply from April 2020. Taxpayers can make a fresh start from a new financial year. This decision to defer GST returns applies to all taxpayers and for all forms under the new GST returns system.

Restrictions on ITC claim in GSTR-3B

To push the taxpayers toward timely filings of a statement of outward supplies, GST council recommended restrictions on Input Tax Credit (ITC) claim. Recipients will be restricted from ITC if the suppliers have not furnished the details of outward supplies.

Announced GST exemptions

• Supplies of goods or services to FIFA – specified individuals for Under 17 Women’s Football World Cup in India
• Supply to Food and Agriculture Organisation (FAO)
• Imports of defence goods that are not made indigenously(up to 2024)
• Import of silver/platinum by specified agencies, and the supply of silver/platinum by specific nominated agencies to exporters.

• Storage or Warehousing services for cereals, pulses, fruits, nuts, vegetables, jaggery, raw vegetable fibres such as cotton, flax, jute etc., unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee, tea etc.
• The BANGLA SHASYA BIMA (BSB) crop insurance scheme of the West Bengal Government.
• Group insurance schemes for Paramilitary Forces under the Ministry of Home Affairs.

Other Significant changes in GST Rates

• No GST on hotel accommodation with a transaction value of Rs 1000 or less per day. Transactions above Rs 7500 will attract 18% GST.
• Machine job works in the engineering industry will be levied at a lower tax rate of 12% less than the previous 18%.
• Taxability of fish meal: Exemption granted for all cases from July 1, 2017, to 30 September 2019, except where tax is already collected.
• Tax rates on cut and polished semi-precious stones slashed to 0.25% from 3%.

Various GST Tax Slabs

The GST Council decides the rate slabs and the GST council has been periodically revising the goods and services for each rate slab. The GST system currently has four slabs- 5%, 12%, 18% and 28%.

Goods and Services at 5% GST slab

GOODS	SERVICES
Dairy products- Skimmed milk Powder,Packaged Cream etc	Railway travel
Frozen vegetables	Economy class air Travel
Food items	Cab Aggregators( e.g. Uber and Ola)
Beverages- Coffee, Tea, Juices
Apparel below Rs 1000
Footwear below 500
Fuel- Kerosene, LPG, Coal
Solar Panels
Common Utility- Broom
Contraceptives

Goods and Services at 12% GST slab

GOODS	SERVICES
Dairy Products:Butter, Cheese, Ghee	Non AC Hotels and Restraunts
Packaged Dry Fruits	Business Class Air travel
Food items- Snacks, Sausages, Jams Beverages: Fruit Juices and Packaged Coconut Water
Apparel above Rs 1000
Personal Hygiene- Tooth Powder
Common utilities- Sewing Machine, Umbrella
Ayurvedic Medicine
Mobile phones

Goods and Services at 18% GST slab

GOODS	SERVICES
Dairy Products- Ice Cream	Hotels charging more than Rs 2500 per day but less     than Rs 7500
Preserved Vegetables	IT Services
Branded Garments	Telecom Services
Beverages-Mineral Water	Financial Services
Stationery- Envelopes, Fountain Pens	Cinema Tickets worth Rs 100 or less
Electronic Equipments-Printed Circuits, Monitors	Works Contract
Iron and Steel Products
Biri Wrapper Leaves
Biscuits

Goods and Services at 28% GST slab

GOODS	SERVICES
Food items: Chocolates, Chewing Gum, Custard Powder	Hotels charging more than Rs 7500 per day
Beverages- Aerated Water	Race course betting
Personal Hygiene- Deodrants, Shaving Cream, After Shave, Face Creams etc	Cinema tickets more than Rs 100
Speakers
Cameras
Housing Materials- Paint, Wallpaper, Cement
Weighing Machines, Vending machines, ATM Machines
Fireworks

Takeaway

The 37^th GST Council Meet held in Goa on 20^th September 2019, came up with several important changes. These changes are expected to improve the condition of our economy which presently seems to be in middle of a chaos.