16th GST Council Meeting – Highlights and Updates
The 16th GST council meeting was held on 11th June 2017 was chaired by Arun Jaitely with the aim of discussing and deciding upon:
- Confirmation of the minutes of the 15th GST Council meeting held on 3rd June 2017
- Approval of amendments to the draft GST Rules and related Forms.
- Rate adjustments, if any, based on the representations received from Trade and Industry – Goods/services.
Find below 16th GST Council Meeting – Information and Details
As proposed by the agenda certain rates were revised. As supposedly out of 133 representations that were made, GST Council reduced tax levels in 66 cases. Turnover limit for composition scheme was increased and the rules and format of the accounts and records were also finalised in 16th GST Council meeting.
Revision in the rates: had been done on the basis of usability and frequency of the goods and new rate is near to existing indirect tax.
- Movie tickets costing Rs 100 and below, Kajal and computer printers will now attract 18%, against 28% proposed earlier, while movie tickets costing above Rs 100 will continue to attract 28% GST.
- The Gst rates on Kitchen items like pickles, mustard sauce and murabba will be 12%, earlier it was 18%. Also, tax rates on cashew nuts have been reduced from 12% to 5%. lower tax incidence could help improve tax buoyancy and keep inflation low however Reducing the tax rate meant a revenue impact for the government.
Threshold limit of Composition Scheme was revised in the 16th GST Council meeting held on 11th June, 2017. Turnover limit for composition levy for CGST and SGST has been increased to 75 lakh for traders, manufacturers and restaurants. while earlier it was 50 lakh. The scheme allows traders, manufacturers and restaurant owner to pay taxes at the rate of 1%, 2% and 5% respectively.
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IGST Exemption under GST were revised for:
- Bilateral Commitments – Imports under Agreement between India and Pakistan / Bangladesh for regulation of Bus Service.
- Technical Exemptions for Temporary import/Re-Import.
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Exemption from registration to certain class:
- Individual advocates (including senior advocates)
- Individual sponsorship service providers (including players)
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The exemption list for supply of services to be continued in GST as approved by the GST Council after S. no. 83 following should be added:
| SN | Supply of Services |
| 84 | Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution |
| 85 | Services provided to the Government under any insurance scheme for which total premium is paid by Government |
| 86 | Services provided to the Government under any training programme for which total expenditure is borne by the Government |
Revised GST Rate for Certain Services in the schedule of GST Rates for services as approved by the GST Council, after S.no. 13, the following shall be inserted:
| SN | Supply of Services | GST Rate |
| 13A | Services by way of job work in relation to –
a) Textile yarns (other than man-made fibre/filament) & textile fabrics b) Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN c) Printing of books (including braille books), journals and periodicals d) Processing of leather |
5 % with full ITC |
| 27A | Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is Rs. 100 or less. | 18% with Fill ITC |
Revised GST Rate for Certain Goods:
| SN | Description of Goods | Earlier Rate | Revised Rate |
| 1. | Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc. | 5% | 0% |
| 2. | Cashew nut | 12% | 5% |
| 3. | Cashew nut in shell | 12% | 5% [under reverse charge] |
| 4. | Raisin | 12% | 5% |
| 5. | Cereal grains hulled | 5% | 0% |
| 6. | Palmyra jiggery | 18% | 0% |
| 7. | Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly | 18%/12% | 12% |
| 8. | Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces | 18% | 12% |
| 9. | Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings | 28% | 18% |
| 10. | Bari made of pulses including mungodi | 18% | 12% |
| 11. | Ice and snow | 12% | 5% |
| 12. | Salt, all types | 5% | 0% |
| 13. | Bio gas | 12% | 5% |
| 14. | Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 | 12% | 0% |
| 15. | Insulin | 12% | 5% |
| 16. | (i) Menthol and menthol crystals,
(ii) Peppermint (Mentha Oil), (iii) Fractionated / deterpenated mentha oil (DTMO), (iv) Dementholised oil (DMO), (v) Spearmint oil, (vi) Mentha piperita oil (vii) |
18% | 12% |
| 17. | Kajal [other than kajal pencil sticks] | 28% | Nil |
| 18. | Kajal pencil sticks | 28% | 18% |
| 19. | Agarbatti | 12% | 5% |
| 20. | Dental wax | 28% | 18% |
| 21. | All diagnostic kits and reagents | 18% | 12% |
| 22. | Plastic beads | 28% | 12% |
| 23. | Plastic Tarpaulin | 28% | 18% |
| 24. | (i) School satchels and bags other than of leather or composition leather;(ii) Toilet cases [4202 12 10];
(iii) Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40]; (iv) Handbags of other materials excluding wicker work or basket work [4202 29 10]. |
28% | 18% |
| 25. | Exercise books and note books | 18% | 12% |
| 26. | Kites | 12% | 5% |
| 27. | Children’s’ picture, drawing or colouring books | 12% | Nil |
| 28. | Coir mats, matting and floor covering | 12% | 5% |
| 29. | Headgear and parts thereof | 28% | 18% |
| 30. | Human hair, dressed, thinned, bleached or otherwise worked | 28% | 0% |
| 31. | Fly ash blocks | 28% | 12% |
| 32. | Precast Concrete Pipes | 28% | 12% |
| 33. | Salt Glazed StoneWare Pipes | 28% | 18% |
| 34. | Glasses for corrective spectacles and flint buttons | 18% | 12% |
| 35. | Rough precious and semi-precious stones | 3% | 0.25% |
| 36. | Aluminium foil | 28% | 18% |
| 37. | Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs | 18% | 12% |
| 38. | All goods, including hooks and eyes | 28% | 18% |
| 39. | Pawan Chakki that is Air Based Atta Chakki | 28% | 5% |
| 40. | Fixed Speed Diesel Engines | 28% | 12% |
| 41. | Rear Tractor tyres and rear tractor tyre tubes | 28% | 18% |
| 42. | Rear Tractor wheel rim, tractor centre housing, tractor housing transmission,tractor support front axle | 28% | 18% |
| 43. | Weighing Machinery [other than electric or electronic weighing machinery] | 28% | 18% |
| 44. | Printers [other than multifunction printers] | 28% | 18% |
| 45. | Ball bearing, Roller Bearings, Parts & related accessories | 28% | 18% |
| 46. | Transformers Industrial Electronics | 28% | 18% |
| 47. | Electrical Transformer | 28% | 18% |
| 48. | Static Convertors (UPS) | 28% | 18% |
| 49. | Recorder | 28% | 18% |
| 50. | CCTV | 28% | 18% |
| 51. | Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc. | 28% | 12% |
| 52. | Set top Box for TV | 28% | 18% |
| 53. | Computer monitors not exceeding 17 inches | 28% | 18% |
| 54. | Electrical Filaments or discharge lamps | 28% | 18% |
| 55. | Winding Wires | 28% | 18% |
| 56. | Coaxial cables | 28% | 18% |
| 57. | Optical Fiber | 28% | 18% |
| 58. | Perforating or stapling machines (staplers), pencil sharpening machines | 28% | 18% |
| 59. | Baby carriages | 28% | 18% |
| 60. | Intraocular lens | 18% | 12% |
| 61. | Spectacles, corrective | 18% | |
| 62. | Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers) | 28% | 18% |
| 63. | Bamboo furniture | 28% | 18% |
| 64. | Playing cards, chess board, carrom board and other board games, like ludo, etc. [other than Video game consoles and Machines] | 28% | 12% |
| 65. | Swimming pools and paddling pools | 28% | 18% |
| 66. | Muddhas made of sarkanda and phool bahari jhadoo | 5% | 0% |
| 67. | Postage or revenue stamps, stamp-postmarks, first-day covers, etc. | 12% | 5% |
| 68. | Numismatic coins | 12% | 5% |
| 69. | Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability [These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)] | – | 5% |
