GST latest updates on tax rates – GST Registration in Coimbatore

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GST latest updates on tax rates GST
Registration in Coimbatore
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GST council made the most awaited announcement
about the tax rates on various categories in the
month of 18th January 2018. There has been hype
around these rates for a while and now these
rates are finally in the public domain.
GST rates already have created a huge wave of
curiosity across the trade bodies and industry
when it got announced. Everyone is evaluating
their position as a result of this change. Note
that exemptions, rate changes and other proposals
made shall be given effect once the notifications
are issued for the same.
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Key decisions are taken in the 25th council meet

• Cancellation of registration by voluntary
  registrants can be applied before the expiry of 1
  year from the date of registration.
• Late fee reduction
• For GSTR-1, GSTR-5, GSTR-5A, and GSTR-6, the late
  fee has been reduced to Rs.50 per day.
• If the Nil return is filed for GSTR-1, GSTR-5,
  GSTR-5A, the late fee has been reduced to Rs.20
  per day.
• On the successful implementation of e-way bills,
  the e-way bill portal has been shifted to
  ewaybillgst.gov.in
• Recommendations which are made by the handicraft
  committee have been accepted by the council. The
  rate considerations will be worked out later.
• GST rates for 29 goods and 53 services have been
  reduced.

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GST rate changes for goods

• Rate changes from 28 to 18
• Old and the used motor vehicle (medium, large
  cars, and SUVs) with a condition that no input
  tax credit is availed.
• Public transport buses which run on biofuel.

• Nil rated goods
• Parts and accessories for the manufacturing of
  hearing aids.
• Vibhuti
• De-oiled rice bran.

• Rates reduced from 18 to 5
• Consumables and raw materials needed for launch
  satellites, vehicles, and payloads (both CGST and
  IGST rates).
• Mehendi paste in cones.
• Tamarind kernel powder.

• Rates reduced from 28 to 12
• For an old and the used motor vehicle (other than
  the medium and the large cars and SUVs) with a
  condition that no input tax credit is availed.

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• Rates reduced from 18 to 12
• Biodiesel
• Drinking water in 20 litres bottles.
• Mechanical sprayer.
• Fertilizer grade phosphoric acid
• A certainly listed bio-pesticides
• Bamboo wood building joinery
• Drip irrigation system includes the sprinklers,
  laterals.

• Rates reduced from 12 to 5
• Velvet fabric (with a condition that no refund
  has been claimed on ITC).
• Articles of esparto, straw or of other plaiting
  materials.

• Rates reduced from 3 to 0.25
• Diamonds and
• Precious stones.

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Rates increased from 12 to 18 Cigarette
filters rods.
Rates increased from 0 to 5 Rice bran oil

• Compensation cess has been reduced to 0 for the
  following motor vehicles
• Old and the used motor vehicles (medium and the
  large sized cars) with a condition that no input
  tax credit is availed.
• Old and the used motor vehicles (other than
  medium and large cars and SUVs) with a condition
  that no input tax credit been availed.
• A vehicle which is cleared as an ambulance (i.e.
  it should have all the necessary accessories in
  the ambulance).
• 10-13 seater buses and the ambulances with the
  specified conditions

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• GST rate changes for services
• GST rate at 5 on the small housekeeping service
  providers which is notified under the section
  9(5) of the act provides the housekeeping
  services through ECO without availing the input
  tax credit.
• GST rate of 28 on the actionable claim in the
  form of a chance to win in gambling, betting
  which also includes horse racing.

Reduction rates 28 to 18 Services by way of
admission to water parks, joy rides, theme parks,
merry-go-rounds, go-karting and ballet

• 18 to 5
• Without ITC credit, transportation of petroleum
  crude and products.
• Tailoring services.
• Job work services for the manufacturing of
  leather goods.

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Exempted services list and the related changes

• Legal services provided to the local authority,
  government, governmental entity, and authority.
• Transportation of goods from India to a place
  outside India by air or sea until 30thSeptember
  2018.
• Dollar-denominated services provided by financial
  intermediaries located in IFSC SEZ, which have
  been deemed to be outside India under the various
  regulations by IRDAI, RBI, SEBI or any financial
  regulatory authority to a person outside India.
• Pure services provided to a government entity by
  a Panchayat or municipality. Composite supply
  involves the predominant supply of services (i.e.
  up to 25 of the supply of goods) are also
  exempted.

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• Lease of land
• By local authority or government to a
  governmental authority or government entity.
• Supply as a part of the specified composite
  supply of construction of flats etc.
• Admission to or conduct of examination provided
  to all the educational institutions including any
  service of conducting the entrance examinations
  on a collection of entrance fees.
• Reinsurance schemes with respect to the following
  schemes
• General insurance business provided under the
  schemes such as Pradhan Mantri Suraksha Bima
  Yojna and others listed in the notification
  12/2017 CGST rate.
• Life insurance business provided under the
  schemes such as Pradhan Mantri Jan Dhan Yojana
  and others listed in the notification
  12/2017-CGST rate.

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• Services by way of fumigation in a warehouse of
  agricultural produce.
• Services of admission to the planetarium where
  consideration charged are below Rs.500.
• Subscription of online educational
  periodicals/journals by educational institutions
  that provide degree which is recognized by any
  law.
• Renting of transport vehicles to a person
  providing services of transportation to an
  educational institution (students, faculty, and
  staff) provides education up to higher secondary
  or equivalent.

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Changes in the exemption limits in the following
cases

• The exemption limit of Rs.5000 per month per
  member in respect of the services which is
  provided by resident welfare association
  (unincorporated or non-profit entity) to its
  members against their individual contribution
  that is enhanced to Rs.7500.
• The exemption limit of the amount of the cover of
  Rs.50, 000 which is enhanced to Rs.2 lakhs in
  respect of services of life insurance business
  provided under life micro insurance product
  approved by IRDAI.
• The exemption limit of Rs.250 for services that
  all theatrical performances like music, drama,
  orchestra, dance, folk or classical arts and all
  the other activities in any Indian language in
  theatre increased 500 per person.

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