News Update
Dec- 2019
The due date for GSTR-9 and GSTR-9C has been extended to 31st December 2019 and 31st March 2020 for FY 2017-18 and FY 2018-19 respectively.
GST Council 37th meet – On 20th Sep 2019, it happened at Goa, Chaired by Union Finance Minister with GST rate cuts and the following key announcements were made:
- New return filing system from April 2020
- Aadhar mandatory for registration of taxpayers under GST and it may become mandatory for claiming refunds.
- Soon, ITC claim to be restricted, unless GSTR-1 has been filed
- GSTR-9 filing for businesses with turnover upto Rs 2 crores optional for FY 2017-18 and FY 2018-19
- GSTR-9A waived for FY 2017-2018 and FY 2018-2019
- A Committee of Officers will review simplification of GSTR-9 and GSTR-9C
- Integrated refund system with refund disbursal by single authority to be introduced from 24th September, 2019.
- In principle decision to prescribe reasonable restrictions for passing of ITC by risky taxpayers including risky new taxpayers (likely be system driven based on their activity)
New List of GST Rates
List of principle rate revisions passed by GST Council
GST Rate Revision effective from 1 October 2019
| Item | Current Rate | New Rate |
| Plates and cups made of flowers, leaves and bark | 5% | Nil |
| Caffeinated Beverages | 18% | 28%+12% cess |
| Supplies of Railways wagons & coaches (without refund of accumulated ITC) | 5% | 12% |
| Outdoor Catering (without ITC) | 18% | 5% |
| Diamond Job work | 5% | 1.50% |
| Other Job work | 18% | 12% |
| Hotels (Room Tariff of Rs.7501 or above) | 28% | 18% |
| Hotels (Room Tariff from Rs 1,001 to Rs 7,500) | 18% | 12% |
| Woven/ Non-woven Polyethylene Packaging bags | 18% | 12% |
| Marine fuel | 18% | 5% |
| Almond Milk | 18% | |
| Slide fasteners | 18% | 12% |
| Wet grinders (consisting of stone as a grinder) | 12% | 5% |
| Dried Tamarind | 5% | Nil |
| Semi-precious stones- cut & polished | 3% | 0.25% |
| Specified goods for petroleum operation under HELP* | Applicable Rate | 5% |
GST Council’s 32nd meeting was held on 10th January 2019 at Delhi, Chaired by the F.M. Mr. Arun Jaitley.
It is decided in the GST Council meet that basic exemption limit for suppliers of goods will be increased from 20 lakhs –to- 40 lakhs Rupees. However, for suppliers of services the limit remains 20 lakhs. For states in special category, limit for registration is currently at 10 lakhs. This limit in case of supply of goods is increased up to Rs 20 lakhs. These special catagory States have been given an option to either choose 40 lakhs or 20 lakhs threshold limit in a one week’s time.
New GST Composition scheme for Services providers
Those suppliers rendering either independent services or providing a mixed supply of goods & services with a turnover of up to 50 lakhs Rs p.a in the preceding financial year, can join this scheme. The Tax rate is fixed at 6% (3% CGST +3% SGST).
Changes to existing GST Composition scheme
- Now increase in the limit to opt into the scheme will be increased up to Rs 1.5Cr effective from 1st April 2019
- Here Tax to be paid Quarterly and GST Returns to be filed annually.
{Note: The effective changes to GST Composition scheme for both suppliers of goods and services will apply from 1st April 2019.}
No Change in GST Rate
- The GST council recommended no changes in GST Rates until Revenue grows.
- For real estate no GST rate cut on sale of under construction flats. Instead, a 7 member group of ministers is formed to study the implications of reducing the rates from 12% to 5% on supply of such under construction properties.
For more news & update on GST keep looking for this space. If you are planning to get GST Registration then please get in touch with OfficePostBox team on contact@officepostbox.com