GST

Highlights from the 37th GST Council Meet

The 37^th GST council meet was recently concluded in Goa under the chairmanship of Union Finance & Corporate affairs Smt Nirmala Sitharaman. The union minister was accompanied by Union Minister of State for Finance and Corporate Affairs Mr. Anurag Thakur. The meet was also attended by the chief minister of Goa Mr. Pramod Sawant along with respective finance ministers of state and union territories. The new rate shall be made effective with effect from 1^st October 2019.

Key outcomes;

• A uniform GST rate will be charged on woven /non-woven polythene bags. This includes polypropylene bags and sacks used for goods packaging.
• In a relief provision to the diamond worker crisis, the GST has been reduced to 1.5% from 5%.
• The manufactures of a cup of plates using leaves are exempted from GST.
• Further, the gems industry has also been a beneficiary of the new provisions with GST rates declining to 0.25 % from the prevailing rate of 3% on cut and semi-polished precious gems
  
  
• The hotel industry received new provisions for GST

1. Hotels service charge up to Rs 1000 per night – Nil GST

2. A hotel service charge from Rs.7500 per night – 12 %

3. Hotel service charge in excess of Rs.7500 per night – 18%

• The almond milk industry will attract a GST of 18%
• The Caffeine product industry ended on a losing side, where the rate of GST was increased from 18 % to 28% along with cess of 12 %.
• The GST rate for the catering industry was reduced to 5 % from 18 %.
• The GST rate for Marine fuel has been reduced to 5 % from 18%.             

Items exempted from GST/IGST

• Imports of specified defense goods not produced indigenously.
• Supply of goods and services to specified organizations such as FIFA and Foods and Agriculture Organization for specific projects in India.

Further GST council^[1] has announced a waiver of the requirement of filing FORM GSTR-9A for Composition Taxpayers and filing of FORM GSTR-9 for those taxpayers who have an aggregate turnover up to Rs. 2 crores made optional for the said tax periods.