Key highlights and updates from GST Council meet

The GST Council deliberations which began on Tuesday, resulted in several revisions in tax rates besides other decisions.

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The GST Council deliberations which began on Tuesday, resulted in several revisions in tax rates besides other decisions. The meeting is headed by Finance Minister Nirmala Sitharaman and stood at Chandigarh.

Some of the key decisions that were made in today’s meeting were:

    1. Tax @ 18% on cheques, lose or in book form
    2. Withdrawal of exemption on services by department of posts except post cards, envelopes less than 10 gm
    3.  Increase in GST on e-waste from 5% to 18%
    4.  Withdrawal of exemption to services provided by RBI, Sebi, IRDAI, FSSAI
    5. Hotel accommodation below Rs 1,000 be taxed at 12%
    6.  Withdrawal on GST exemption on storage and warehousing of taxable goods like sugar, natural fiber
    7.  Withdrawal of exemption on services like fumigation of warehouses
    8.  Withdrawal of exemption to business class air travel for northeastern states
    9.  Withdrawal of exemptions on road and rail transport, when such services are input for business
    10.  Withdrawal of exemption on services by way of slaughtering of animals
    11.  Input tax credit Refund on account of inverted duty structure in edible oils, coal disallowed.
    12. GST Council approves to replace the term ‘branded’ with ‘pre packaged and labelled’ for retail sale to avoid disputes. (Branded cereals, food attract 5% GST currently)
    13.  Exemption for food items, cereals sold loose or unlabeled continued.
    14.  Tax increased LED lamps, ink, knives, blades, power driven pumps, dairy machinery from 12% to 18%
    15. Tax increased on milling machinery for cereals from 5% to 18%
    16. Tax increased on solar water heater, finished leather from 5% to 12%
    17.  Tax increased on work contract services supplied to govt, local authorities to 18% to correct inversion
    18.  Tax increased on specified goods for petroleum from 5% to 12% on input goods to correct inversion.

 

Nirmala Sitharaman will address the media on June 29 on the GST Council’s final decisions. The briefing is likely to be held at 4 PM.

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