GST Changes by 16th GST Council Meet dated 11.6.2017
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Join our Email Newsletter| 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 |
- A)Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017
- 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 |
- 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 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 ₹ 100 or less. | 18% with Full ITC |
- Exemption from registration undersection 23(2)of the CGST Act 2017 of –
- Individual advocates (including senior advocates)
- 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
- Bilateral Commitments – Imports under Agreement between India and Pakistan /Bangladesh for regulation of Bus Service
| S. No. | Notification | Gist of the notification |
| 1. | No.4/99-Customs, dated 08.01.1999 | 1. 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. |
- Technical Exemptions for Temporary import/Re-Import
| S. No. | Notification | Gist of the notification |
| 1. | No.40/2015-Customs, dated 21.07.2015 | Import 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 09.03.2012 | An 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 present | Inter-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 |
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 item | Description of goods | Earlier GST rate approved by the GST Council | Revised GST Rate approved by the GST Council |
| 1. | 0506, 0507 90 | Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc. | 5% | 0% |
| 2. | 0801 | Cashew nut | 12% | 5% |
| 3. | 0801 | Cashew nut in shell | 12% | 5% [under reverse charge] |
| 4. | 0806 | Raisin | 12% | 5% |
| 5. | 1104 | Cereal grains hulled | 5% | 0% |
| 6. | 1702 | Palmyra jaggery | 18% | 0% |
| 7. | 20 [All goods] | Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly | 18%/12% | 12% |
| 8. | 2103, 2103 00, 2103 90 90 | Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces | 18% | 12% |
| 9. | 2103 90 10, 2103 90 30, 2103 90 40 | Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings | 28% | 18% |
| 10. | 2106 | Bari made of pulses including mungodi | 18% | 12% |
| 11. | 2201 90 10 | Ice and snow | 12% | 5% |
| 12. | 2501 | Salt, all types | 5% | 0% |
| 13. | 27 | Bio gas | 12% | 5% |
| 14. | 28 | Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 | 12% | 0% |
| 15. | 30 | Insulin | 12% | 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 00 | Kajal [other than kajal pencil sticks] | 28% | Nil |
| 18. | 3304 20 00 | Kajal pencil sticks | 28% | 18% |
| 19. | 3307 | Agarbatti | 12% | 5% |
| 20. | 3407 | Dental wax | 28% | 18% |
| 21. | 3822 | All diagnostic kits and reagents | 18% | 12% |
| 22. | 3926 | Plastic beads | 28% | 12% |
| 23. | 3926 90 99 | Plastic Tarpaulin | 28% | 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. | 4820 | Exercise books and note books | 18% | 12% |
| 26. | 4823 | Kites | 12% | 5% |
| 27. | 4903 | Children’s’ picture, drawing or colouring books | 12% | Nil |
| 28. | 57 | Coir mats, matting and floor covering | 12% | 5% |
| 29. | 65 [All goods] | Headgear and parts thereof | 28% | 18% |
| 30. | 6703 | Human hair, dressed, thinned, bleached or otherwise worked | 28% | 0% |
| 31. | 68 | Fly ash blocks | 28% | 12% |
| 32. | 6810 11 90 | Pre cast Concrete Pipes | 28% | 18% |
| 33. | 6906 | Salt Glazed Stone Ware Pipes | 28% | 18% |
| 34. | 7015 10 | Glasses for corrective spectacles and flint buttons | 18% | 12% |
| 35. | 71 | Rough precious and semi-precious stones | 3% | 0.25% |
| 36. | 7607 | Aluminium foil | 28% | 18% |
| 37. | 8215 | Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs | 18% | 12% |
| 38. | 8308 | All goods, including hooks and eyes | 28% | 18% |
| 39. | 84 | Pawan Chakki that is Air Based Atta Chakki | 28% | 5% |
| 40. | 84 | Fixed Speed Diesel Engines | 28% | 12% |
| 41. | 4011 | Rear Tractor tyres and rear tractor tyre tubes | 28% | 18% |
| 42. | 8708 | Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle | 28% | 18% |
| 43. | 8423 & 9016 | Weighing Machinery [other than electric or electronic weighing machinery] | 28% | 18% |
| 44. | 8443 | Printers [other than multifunction printers] | 28% | 18% |
| 45. | 8482 | Ball bearing, Roller Bearings, Parts & related accessories | 28% | 18% |
| 46. | 8504 | Transformers Industrial Electronics | 28% | 18% |
| 47. | 8504 | Electrical Transformer | 28% | 18% |
| 48. | 8504 | Static Convertors (UPS) | 28% | 18% |
| 49. | 8521 | Recorder | 28% | 18% |
| 50. | 8525 | CCTV | 28% | 18% |
| 51. | 8525 60 | Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc. | 28% | 12% |
| 52. | 8528 | Set top Box for TV | 28% | 18% |
| 53. | 8528 | Computer monitors not exceeding 17 inches | 28% | 18% |
| 54. | 8539 | Electrical Filaments or discharge lamps | 28% | 18% |
| 55. | 8544 | Winding Wires | 28% | 18% |
| 56. | 8544 | Coaxial cables | 28% | 18% |
| 57. | 8544 70 | Optical Fiber | 28% | 18% |
| 58. | 8472 | Perforating or stapling machines (staplers), pencil sharpening machines | 28% | 18% |
| 59. | 8715 | Baby carriages | 28% | 18% |
| 60. | 9002 | Intraocular lens | 18% | 12% |
| 61. | 9004 | Spectacles, corrective | 18% | 12% |
| 62. | 9017 | Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers) | 28% | 18% |
| 63. | 9403 | Bamboo furniture | 28% | 18% |
| 64. | 9504 | Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines] | 28% | 12% |
| 65. | 9506 | Swimming pools and padding pools | 28% | 18% |
| 66. | 9603 10 00 | Muddhas made of sarkanda and phool bahari jhadoo | 5% | 0% |
| 67. | 9704 | Postage or revenue stamps, stamp-post marks, first-day covers, etc. | 12% | 5% |
| 68. | 9705 | Numismatic coins | 12% | 5% |
| 69. | 4823 90 11, 8472, 9101,9102, 9021 | 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% |
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