GST Changes by 16th GST Council Meet dated 11.6.2017

Ø Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017

Ø Revised Threshold for Composition Levy Enhanced

Ø IGST Exemption under GST

Ø Revised GST Rates for Certain Goods

  1. A)Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017
  1. In the list of service tax exemptions to be continued in GST as approved by the GST Council, after S.No. 83, the following shall be inserted –
Sl. No.Proposal/ request
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
  1. In the schedule of GST Rates for Services as approved by the GST Council, after S.No. 13, the following shall be inserted –
Sl. No.Description of ServicesGST Rate
13AServices 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
27AServices by way of right to admission to exhibition of cinematographic films where the consideration for admission is ₹ 100 or less.18% with Full ITC
  1. Exemption from registration undersection 23(2)of the CGST Act 2017 of –
  2. Individual advocates (including senior advocates)
  3. Individual sponsorship service providers (including players)

2)    REVISED THRESHOLD LIMIT FOR COMPOSITION LEVY

Earlier the limit to opt for composition scheme under GST was when eligible registered person, whose aggregate turnover in the preceding financial year did not exceed 50 lakh. The GST Council, in its meeting held on 11th June, 2017, has recommended increase in the aforesaid turnover limit for Composition Levy for CGST and SGST purposes from 50 lakh to 75 lakh in respect of all eligible registered persons, referred to in the aforesaid subsection. However, whether the same increased turnover limit for Composition levy will apply in case of Special Category States or not will be decided in the next GST Council meeting.

3)    IGST Exemption under GST

  1. Bilateral Commitments – Imports under Agreement between India and Pakistan /Bangladesh for regulation of Bus Service
S. No.NotificationGist of the notification
1.No.4/99-Customs, dated 08.01.19991. Passenger bus; and
2. Spares, fuel and consumables for the passenger bus imported under the Agreement between India and Pakistan for regulation of Bus Service between New Delhi and Lahore or under the Agreement between India and Bangladesh for regulation of Bus Service between Calcutta and Dhaka.
These imports will be exempt from IGST.
  1. Technical Exemptions for Temporary import/Re-Import
S. No.NotificationGist of the notification
1.No.40/2015-Customs, dated 21.07.2015Import of Diamonds for Certification / Grading & Re-export in terms of Para 4.42 of the FTP 2015-20, by the agencies mentioned in Para 4.42 of FTP, without payment of all Customs duties after executing bond with Customs.
These imports will be exempt from IGST.
2.No.9/2012-Customs, dated 09.03.2012An exporter (with annual export turnover of ₹ 5 crore for each of the last three years) may export cut & polished diamonds (each of 0.25 carat or above) to specified testing agencies/laboratories abroad [as mentioned under paragraph 4.74 of the Handbook of Procedures] for testing.
On their re-import [within 3 months from the date of export] such cut and polished diamonds are exempt from customs duties [BCD, CVD and SAD].
These imports will be exempt from IGST.
3.No exemption at presentInter-state movement of any mode of conveyance between distinct persons as defined under section 25(4) of the Central Goods and Services Tax Act, 2017, including
i. Trains

ii. Buses

iii. Trucks

iv. Tankers

v. Trailers

vi. Vessels

vii. Containers

a) Carrying goods or passengers or both; or
b) For repairs and maintenance,
[except in cases where such movement is is for further supply o fthe same conveyance] shall be treated neither as a supply of goods or supply of service and therefore, not be leviable to IGST.
However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and maintenance done.

4)    REVISED GST RATE FOR CERTAIN GOODS

As per discussions in the 16th GST Council Meeting held on 11th June, 2017]

S. No.Chapter / Heading / Subheading / Tariff itemDescription of goodsEarlier GST rate approved by the GST CouncilRevised  GST Rate approved by the GST Council
1.0506, 0507 90Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc.5%0%
2.0801Cashew nut12%5%
3.0801Cashew nut in shell12%5%  [under reverse charge]
4.0806Raisin12%5%
5.1104Cereal grains hulled5%0%
6.1702Palmyra jaggery18%0%
7.20

[All goods]		Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly18%/12%12%
8.2103, 2103 00, 2103 90 90Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces18%12%
9.2103 90 10, 2103 90 30, 2103 90 40Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings28%18%
10.2106Bari made of pulses including mungodi18%12%
11.2201 90 10Ice and snow12%5%
12.2501Salt, all types5%0%
13.27Bio gas12%5%
14.28Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 200212%0%
15.30Insulin12%5%
16.29, 30, 3302(i) Menthol and menthol crystals,

(ii) Peppermint (Mentha Oil),

(iii) Fractionated / de-terpenated mentha oil (DTMO),

(iv) De-mentholised oil (DMO),

(v) Spearmint oil,

(vi) Mentha piperita oil

18%12%
17.3304 20 00Kajal [other than kajal pencil sticks]28%Nil
18.3304 20 00Kajal pencil sticks28%18%
19.3307Agarbatti12%5%
20.3407Dental wax28%18%
21.3822All diagnostic kits and reagents18%12%
22.3926Plastic beads28%12%
23.3926 90 99Plastic Tarpaulin28%18%
24.4202(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%
25.4820Exercise books and note books18%12%
26.4823Kites12%5%
27.4903Children’s’ picture, drawing or colouring books12%Nil
28.57Coir mats, matting and floor covering12%5%
29.65

[All goods]		Headgear and parts thereof28%18%
30.6703Human hair, dressed, thinned, bleached or otherwise worked28%0%
31.68Fly ash blocks28%12%
32.6810 11 90Pre cast Concrete Pipes28%18%
33.6906Salt Glazed Stone Ware Pipes28%18%
34.7015 10Glasses for corrective spectacles and flint buttons18%12%
35.71Rough precious and semi-precious stones3%0.25%
36.7607Aluminium foil28%18%
37.8215Spoons, forks,  ladles, skimmers,  cake servers, fish knives, tongs18%12%
38.8308All goods, including hooks and eyes28%18%
39.84Pawan Chakki that is Air Based Atta Chakki28%5%
40.84Fixed Speed Diesel Engines28%12%
41.4011Rear Tractor tyres and rear tractor tyre tubes28%18%
42.8708Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle28%18%
43.8423 & 9016Weighing Machinery [other than electric or electronic weighing machinery]28%18%
44.8443Printers [other than multifunction printers]28%18%
45.8482Ball bearing, Roller Bearings, Parts & related accessories28%18%
46.8504Transformers Industrial Electronics28%18%
47.8504Electrical Transformer28%18%
48.8504Static Convertors (UPS)28%18%
49.8521Recorder28%18%
50.8525CCTV28%18%
51.8525 60Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc.28%12%
52.8528Set top Box for TV28%18%
53.8528Computer monitors not exceeding 17 inches28%18%
54.8539Electrical Filaments or discharge lamps28%18%
55.8544Winding Wires28%18%
56.8544Coaxial cables28%18%
57.8544 70Optical Fiber28%18%
58.8472Perforating or stapling machines (staplers), pencil sharpening machines28%18%
59.8715Baby carriages28%18%
60.9002Intraocular lens18%12%
61.9004Spectacles, corrective18%12%
62.9017Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers)28%18%
63.9403Bamboo furniture28%18%
64.9504Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines]28%12%
65.9506Swimming pools and padding pools28%18%
66.9603 10 00Muddhas made of sarkanda and phool bahari jhadoo5%0%
67.9704Postage or revenue stamps, stamp-post marks, first-day covers, etc.12%5%
68.9705Numismatic coins12%5%
69.4823 90 11, 8472, 9101,9102, 9021Braille 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%

 

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