Finance Minister Nirmala Sitharaman on Friday announced the reduction of GST rates on a slew of items. The revised GST rates would become effective from 1st October. The key sectors which would benefit from GST rate cuts are hotels, gems & jewellery, defence and automobiles.
GST Council Meeting Outcome:
- Hotel Tariffs Rs. 7,500 and above GST at 18%.
- Hotel Tariffs Rs. 1,000 upto 7,500 GST at 12%.
- Hotel Tariffs below Rs. 1,000 GST at Nil rate.
- Outside Catering GST rate reduced at 5%.
- Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%.
- Council amended rules regarding Refund by Appellate Authority.
- Council amended rules regarding GST Practitioners and Consumer Welfare Fund.
- Cups/Plates made from Flowers leaves GST rate Nil from 5%.
- GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.
- Those with turnover above 2cr to still file GSTR9.
- No relief in case of GSTR-9C as it’s applicable only where turnover exceeds 2crore.
- GSTR-9 also to be made “Saral”.
- The GST on caffeinated beverages has been hiked to 28% plus additional cess of 12% as against the current rate of 18%.
- GST Council recommends lower 12% cess on 1,500 cc diesel, 1,200 cc petrol vehicles with capacity to carry up to 13 people.
- Supply of goods & services to FIFA & other specified persons also exempted for U17 Women’s World Cup in India.
- GST rate on slide fasteners has been reduced from 18% to 12%.
- The tax on almond milk has been set at 18%.
- GST rate hiked on railway wagon, coaches from 5% to 12%.
- Marine fuel from 18% to 5%.
- 12% to 5% on wet grinders consisting of stone as a grinder.
