37th GST Council Meeting – Highlights & Updates

Here the Complete Information of 37th GST Council Meeting and Details

The 37th GST Council meeting was held on 20th september, 2019 Smt Nirmala Sitharaman, the Union Finance Minister chaired the said Council meeting in Goa.

Expectations were high as several sectors were demanding rate cuts in the face of an ongoing economic slowdown. The 37th GST Council meeting aimed at simplification of GSTR9, GST rate cuts on certain goods and items, changing ITC eligibility criteria and giving clarifications on connected issues. The main decision taken in the said meetings are as follows.

GST rate would be NILL for certain goods:

• Plates and cups made of flowers, leaves and bark earlier rate was 5 %
• Dried tamarind earlier rate was 5%

The rate reduced to 5% for the following items:

• Outdoor catering without ITC earlier rate was 18%
• Marine fuel earlier rate was 18%
• Specified goods for Petroleum Operations under hydrocarbon exploration Policy.
•  Parts like solar evacuation tubes for solar water heater, solar system, generation systems would be 5% while earlier there was no GST levied on the same.
• Mechanical sprayers earlier GST rate was 12% while now there would be 5% GST Rate.

GST Rate changed to 12%:

• Hotels where room tariff starts from 1001 to 7500 earlier rate was 18%
• woven/ non woven polyethylene packaging bags would now be bearing 12% GST rate.
• Slide fasteners which earlier beared 18% now to be charged at 12% GST rate.
• Job work other than Bus body building JW earlier GST rate was 18%
• Supplies of Railways wagon and coaches and rolling stocks would be liable for 12% GST rate without refund of accumulated ITC.
• Parts and accessories for medical device the GST rate would be 12%

GST Rate to be 18%:

• Almond Milk
• Hotels where rooms tariff is above 7501/- Rs.
• Job work of bus body building

GST rate on caffeinated beverages would be 28% + 12% cess:

• Earlier rate was 18%

GST rate on Job work would be 1.5%:

• Earlier rate was 5%

GST rate on cut and semi polished stones would be 0.25%:

• Earlier rate was 3%

Exemption from GST to the following sector wise:

Warehousing:

• To exempt prospectively services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetables fibers such as cotton, flax, jute, etc. indigo, manufactured tobacco, betel leaves, tendu leaves, rice, coffee and leaves

Transportation:

• To increase the validity of conditional exemption of GST on export freight by air or sea by another year, i.e. till 30.09.2020

Insurance:

• To exempt “BANGLA SHASYA BIMA’ (BSB) crop insurance scheme of West Bengal Government
• To exempt services of Life Insurance business provided or agreed to be provided by the Central Armed Paramilitary Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the respective Group Insurance Schemes of these central Armed Paramilitary forces

Export promotion:

• Exemption on services provided by an intermediary to a supplier of goods or recipient of goods when both the supplier and recipient are located outside taxable territory

Royalty paid to Authors:

• To allow the registered authors an option to pay GST on royalty charged from publishers under forward charge and observe regular GST compliance

Supplies to FIFA:

• Exemptions of services related to FIFA under-17 Women’s World Cup 2020 similar to existing exemption given to FIFA U17 World Cup 2017.

Import and Supply of Silver/platinum:

• Supply of silver/platinum by specified agencies for export and import of the same would be exempted.

Certain services brought under RCM:

Securities lending services:

• On Securities lending services under reverse charge mechanism, the GST rate would be 18%.
• Also clarified that GST on securities lending service for period prior to RCM period shall be paid on forward charge basis.
• IGST shall be payable on supply of these services and in cases where CGST/SGST/UTGST have been paid, such taxpayers will not be required to pay tax again.

Renting vehicle:

• RCM to suppliers paying GST @5% on renting of vehicles, from registered person other than body corporate (LLP, proprietorship) when services provided to body corporate entities.

Simplification of the rules:

• The Council exempted small businesses from having to file annual returns for FY18 and FY19.
• Sitharaman further said rules will be simplified further to encourage compliance.