#GST Policy Changed in 25th GST Council Meeting


Ministry of Finance
Posted On: 18 JAN 2018 7:49 PM by PIB Delhi
The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi. The following Policy Changes have been recommended by the GST Council in its 25thmeeting held today:
1. The late fee payable by any registered person for failure to furnish FORM GSTR-1 (supply details), FORM GSTR-5 (Non-resident taxable person) or FORM GSTR-5A (OIDAR) is being reduced to fifty rupees per day and shall be twenty rupees per day for NIL filers. The late fee payable for failure to furnish FORM GSTR-6 (Input Service Distributor) shall be fifty rupees per day.

2. Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of registration even before the expiry of one year from the effective date of registration.

3. For migrated taxpayers, the last date for filing FORM GST REG-29 for cancellation of registration is being extended by further three months till 31st March, 2018.

4. The facility for generation, modification and cancellation of e-way bills is being provided on trial basis on the portal ewaybill.nic.in. Once fully operational, the e-way bill system will start functioning on the portal ewaybillgst.gov.in

5. Certain modifications are being made to the e-way bill rules which are to be notified nationwide for inter-State movement with effect from 01.02.2018 and for intra-State movement with effect from a date to be announced separately by each State but not later than 01.06.2018.

6. The report and recommendations submitted by the Committee on Handicrafts were also accepted by the GST Council.

#GST Council Meeting: Changes In GST Rates



Ministry of Finance


Recommendations for Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods -As per discussions held in the 25th GST Council Meeting 

Posted On: 18 JAN 2018 7:49 PM by PIB Delhi

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today. These decisions of the GST Council are being communicated for general information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.

 A. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

S. No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
87
Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
2.
8702
Buses, for use in public transport, which exclusively run on bio-fuels.

B. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
87
All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.

C. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
1704
Sugar boiled confectionary
2.
2201
Drinking water packed in 20 litters bottles
3.
2809
Fertilizer grade Phosphoric acid
4.
29 or 38
Bio-diesel
5
38
The following Bio-pesticides, –

S. No.
Name of the bio pesticide
1
2
3
4
5
Trichoderma viride
6
7
8
9
NPV of Helicoverpaarmigera
10
NPV of Spodopteralitura
11
12
Cymbopogan

6.
4418
Bamboo wood building joinery
7.
8424
Drip irrigation system including laterals, sprinklers
8.
8424
Mechanical Sprayer

D. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
13
Tamarind Kernel Powder
2.
1404/3305
Mehendi paste in cones
3.
2711
LPG supplied for supply to household domestic consumers by private LPG distributors
4.
88 or any other chapter
Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads

 E. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
4601, 4602
Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork

F.     LIST OF GOODS ON WHICHGST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
5601 22 00
Cigarette filter rods

G. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO REFUND OF UNUTILISED INPUT TAX CREDIT:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
5801 37 20
Velvet fabric

H. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
7102
Diamonds and precious stones

I. NIL GST RATE:
1.   Vibhuti
2.   Parts and accessories for manufacture of hearing aids.
3.   De-oiled rice bran
 J. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

S.

No.
Chapter/Heading/Sub-heading/Tariff item
Description
1.
2302
Rice bran (other than de-oiled rice bran)

K.  CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

S.

No
Chapter/

Heading/
Sub-heading/
Tariff item
Description
Present Compensation Cess Rate
Compensation Cess Rate Recommended
    8702
Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions.
15%
Nil
87
Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
Applicable rate
Nil
87
All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.
Applicable rate
Nil

 L. CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

S.

No
Chapter/

Heading/
Sub-heading/
Tariff item
Description
Present IGST Rate
IGST Rate Recommended
88or any other chapter


Satellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads
18%
5%

M. MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

S.

No
Chapter/

Heading/
Sub-heading/
Tariff item
Description
Present GST Rate
Modification/clarification Recommended
27
Poly Butylene Feed Stock & Liquefied Petroleum Gas
18%


The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.
Any chapter
Rail coach industry
Applicable GST rate
Only the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways.
2701
Coal rejects
5% + Rs. 400 PMT Compensation Cess
Coal rejects fall under heading 2701 and attract 5% GST and Rs. 400 PMT Compensation Cess.



It is proposed to issue notification giving effect to the recommendations of the Council on 25th January, 2018 to be effective from 00 HRS on 25th January, 2018