GST Council Meeting Takeaways | H&R Block | Blog
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GST Council Meeting Takeaways

GST council meeting

GST Council is a recommendatory body that directs and dictates the various rules and regulations related to the implementation of GST like the GST Rates, due dates of return filings, exemptions on various categories of products, amendments required in the GST Law etc. The GST Council, under article 279A of the Constitution, was established on 15th September 2016 to take all the major decisions regarding GST.

Structure of GST Council

GST Council is a chaired by the Union Finance Minister and the other members of the council constitute of the Finance Ministers in-charge of Finance or Taxation of all the state or the Union Minister of Revenue.

Chairperson Union Finance Minister
 Other Members of the Council ·         Union Minister of State – in charge of Revenue of Finance.

 

·         The Minister in charge of finance or taxation or any other Minister nominated by each State government

Since its inception, the GST council has met 27 times and created amendments to the GST Law. Below are the key takeaways of the meetings held thus far:

Takeaways of GST Council Meetings

27th GST Council Meeting

Date: 04-05-2018  Location: Kolkata, West Bengal

  • Online process of issuing notices and orders for reversal of input credits and recovery of tax.
  • The tax liability of B2B dealers will be calculated by the outward supply made based on the invoice details filled out.
  • Quarterly returns can be filed by composition dealers and those having nil transactions.
  • Seller invoices can be uploaded anytime for buyer to avail of input credits, which will be automatically calculated.
  • The formation of Ministers from State Governments has been recommended to investigate how digital transactions can be promoted, reduction of GST on ethanol and for the imposition of sugar cess over 5%
  • To avoid misuse of input tax credit system, for sellers who have defaulted in payments above a certain limit, invoices shall be unloaded from the system.
  • The new system will be transitioned into in three stages.
  • To reduce compliance difficulties for businesses, the government will be introducing a simplified return process, soon.
  • There will be user friendly IT interface and tools for easier uploading of invoices for taxpayers, soon
  • For any seller who does not make payments, the buyer’s input credits will not be reversed automatically.
  • GSTN to be taken over and owned by the government.

26th GST Council Meeting

Date: 10-03-2018 Location: New Delhi

The focus of this meeting was on the return simplification process, which will be decided by Finance Minister Arun Jaitley.

  • The current GSTR Filing process that is of GSTR-1 and GSTR-3B has been extended till June 2018.
  • The reverse charge mechanism on transactions from unregistered dealers has been postponed till 30 June 2018.
  • Furthermore, the provisions relating to implementation of tax deducted at source and tax collected at source has been postponed to 30th June 2018.
  • Grievance redressal has been implemented for grievances arising due to IT glitches, The GIC (GST
  • Implementation Committee) is assigned this task.
  • Implementation of e-wallets from 1st October 2018, for easier refund processing. E-way bill will be mandatory from 1st April 2018 on all inter-state supplies, where value of consignment is more than Rs. 50,000.
  • E-way bill will be mandatory for inter-state and intra-state supplies from 1st June 2018.
  • The process for refunds of exports has been expedited.

25th GST Council Meeting

Date: 18-01-2018 Location: New Delhi

  • Major decision taken in this meeting was the reduction of late fees for failure of filing returns. The late fee was reduced to Rs. 50 per day for GSTR-1, GSTR-5 and GSTR-5A and RS 20 per day for NIL Returns.
  • Voluntary registration can be cancelled even before the expiry of one-year from the effective date of registration.
  • Certain modifications in the e-way bill have also been suggested by the council.
  • The council also accepted the report on handicrafts, with the sole motive of boosting the exports of such goods.
  • Due date of filing GST REG-29 extended to 31st March 2018.
  • Decisions relating to changes in GST Rates, ITC, levy of GST in case of services has also been decided in the meeting.

24th GST Council Meeting

Date: Held on 16th December 2017 Location: through video conferencing

  • E-way bill was the focal point of this meeting.
  • It was decided that e-way bill will be implemented on voluntary basis from 1st February 2018 and will be
  • Mandatory from 1st June 2018 for all inter and intra state movement.
  • E-way bill should be generated using Form GST-EWB-01.

23rd GST Council Meeting

Date: Held on 10th November 2017 Location: Guwahati, Assam

  • Simplification of the return filing process
  • GSTR-2 & GSTR-3 suspended until further notice.
  • Due dates for return filings (GSTR-1 & GSTR-3B) were announced.
  • Composition scheme limit increased to Rs 1.5 crore.
  • No inter-state supplies allowed for taxpayers registered under the composition scheme.
  • GST @ 1% applicable on manufacturers and traders under the composition scheme.
  • Waiver of penalties and reduction in penalties for late filing of returns.
  • GST rate changes for the hotels and restaurants.
  • 5% GST applicable on restaurants without input tax credit benefit
  • With the exception of export of service to Nepal and Bhutan, there will be no GST on advance received on supply of goods.

22nd GST Council Meeting

Date Held on 6th October 2017 Location: New Delhi

  • Limit for composition scheme raised to Rs. 1 crore from Rs. 75 lakh.
  • Taxpayers having turnover of up to Rs 1.5 crore annually can file quarterly returns.
  • Traders to pay 1%, manufacturers 2% and restaurants 5% under composition scheme.
  • GST Council reviewed the GST rates of 26 items (Like GST on engine parts, diesel pumps reduced to 18%, GST on Ayurveda medicines reduced to 5%, Manmade yarn put under 12% tax bracket, GST on khakhra) reduced to 5%Decision taken on implementation of E-way bill by April of next year.
  • Recommendation on tax rates for AC Restaurants to be revised.
  • Refund of IGST on exports from July to 10th October 2017 and on exports from August to 18th October 2017.
  • 1% tax applicable on traders, 2% on manufacturers and 5% on restaurants under the composition scheme.
  • GST on job works reduced to 5%.
  • RCM (Reverse Charge Mechanism) suspended till 31st March 2018.
  • TDS/TCS postponed till 31st March 2018.
  • Dates to be announced for SEZ refund and accumulated credit.
  • 0.1% GST applicable on Merchant Exporters for procuring goods from domestic suppliers.
  • To facilitate the exporter’s, it was decided to launch E-wallet scheme from 1st April 2018.
  • Service providers exempt from compulsory registration for inter-state taxable supply

21st GST Council Meeting

Date:  Held on 9th September Location: Hyderabad

  • GST Registration made compulsory for persons undertaking inter-state supply, irrespective of the turnover.
  • GSTR-3B returns to be filed for all months till 31st December.
  • GST reduced to 12% on all the services provided by the local authority or government authority in any of the prescribed ways that includes: construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –
    1. A civil structure meant predominantly for use other than for commerce, industry, or any other business or profession.
    2.  A structure used for: education, clinical, art or cultural establishment.
    3. A residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the CGST Act, 2017.
  • GST to be exempted on tickets to FIFA U-17 Football World Cup- 2017 events.

20th GST Council Meeting

Date: Held on 5th August Location: New Delhi

This was the 2nd GST Council meeting after the launch of GST on 1st July 2017.

  • GST Council approved the implementation of E-way bill across the country on the consignment value above Rs 50,000.
  • To ensure that the benefits of GST rate cuts are passed on to the customers, the GST council had a long discussion on anti-profiteering rules and the Finance Minister appealed to the industry to pass on the benefits to the customers.
  • GST Rates on various services and goods has been reduced: (a) job work to textile industry to be taxed @ 5% which was previously taxed @18% (b) part of tractor, to be used only with tractor subject to 18% GST instead of
  • 28% GST. (c) work contract awarded by the government to be taxed at 12% instead of the 18% GST.
  • New Crop insurance schemes to be exempted from GST. These schemes include: Pradhan Mantri Fasal Bima Yojana (PMFBY), Modified National Agricultural Insurance Scheme (MNAIS), Restructured Weather Based Crop Insurance Scheme (RWCIS), National Agricultural Insurance Scheme (NAIS).
  • Cab operators to be allowed 12% GST with ITC benefit and 5% GST with no ITC benefit.
  • Small house keeping services provided through Electronic Commerce Operators (ECO), shall be liable to pay GST.
  • Legal services provided by a individual advocate or a firm of advocates to a business entity shall fall under the reverse charge mechanism.
  • GST exemption to be provided on Goods and Services provided by and to FIFA and its subsidiaries in connection to FIFA U­17 World Cup to be hosted in India in 2017.

19th GST Council Meeting

Date Held on 17th July 2017 Location: through Video Conferencing

The first GST Council Meeting after the launch of GST on 1st July 2017.

  • The basic agenda of the meeting was to take stock on the implementation of GST and the situation post its rollout.
  • The ad valorem cess on cigarettes was hiked to 5% in addition to the 28% GST.
  • Fixed cess of cigarettes hiked between Rs 485 and Rs 792 per thousand sticks.
  • This would bring additional Rs 5,000 crore of revenue that previously went to the manufacturers.
  • Consumer prices will not be impacted as the increased tax incidence would only take away the additional profits reaped by the manufacturers.

18th GST Council Meeting

Date: Held on 30th June 2017 Location: New Delhi

  • 18th GST Council meeting called to thank all the council members for their support in implementation of GST.
  • GST to be implemented from midnight on 30th June 2017.
  • The tax rate on fertilizers reduced to 5% from 12%
  • Tax rate on exclusive parts of tractors reduced to 18% from 28%

18th GST Council Meeting

Date/Location: Held on 30th June 2017 in New Delhi

  • 18th GST Council meeting called to thank all the council members for their support in implementation of GST.
  • GST to be implemented from midnight on 30th June 2017.
  • The tax rate on fertilizers reduced to 5% from 12%
  • Tax rate on exclusive parts of tractors reduced to 18% from 28%

17th GST Council Meeting

Date Held on 18th June 2017 Location: New Delhi

  • In the 17th GST Council meeting it was announced that GST will be officially launched on the mid night of 30th June 2017.
  • Relaxed tax filing due dates for July and August.
  • No late filing fee or penalty applicable for the said period.
  • Revision in the hotel room tariffs.
  • GST fixed @ 18% for hotel rooms: tariff per day ranges from Rs 2500 to Rs 7500 and GST @ 28% applicable on rooms with tariffs above Rs 7500.
  • State run lottery shall attract GST @12% to the face value of the lottery ticket.
  • Government authorized lottery will attract GST @ 28%.

16th GST Council Meeting

Date: Held on 11th June 2017 Location: New Delhi

  • Rates for 66 items revised out of 133 items recommended these include packaged food, Agarbatti, Cashew Nuts, Cinema Ticket < 100, Concrete Pipes, Computer Printer etc.

 

ITEM OLD GST RATE REVISED GST RATE
Agarbatti 12 5
Insulin 12 5
Packaged Food 18 12
Plastic Beads 28 18
Plastic Tarpaulin 28 18
School Bags 28 18
Dental Wax 28 8
Kajal 28 18
Drawing Books 12 Nil
Cashew Nuts 12 5
Tractors Components 28 18
  • Limit of the composition scheme revised to Rs 75 lakh from Rs 50 lakh.
  • Tax rate on telecom sector and sanitary napkins remains unchanged.
  • Rules related to Anti-profiteering discussed and a clause related to the same added in CGST and SGST laws.

15th GST Council Meeting

Date: Held on 3rd June 2017 Location: New Delhi

  • July 1, 2017 finalized as an official date for the launch of GST.
  • GST Council to decide the rates on 6 categories of commodities like: footwear, biris, textiles, biscuits, precious metals and agricultural machinery.
  • GST @ 3% applicable on jewelry, gold and gems and 0.25% on rough diamond.
  • GST @ 18% on all biscuits.
  • Committee to be set up for addressing to the complaints on anti-profiteering.
  • Amendments relating to transition rules under which traders and retailers can claim 60% against the CGST or SGST dues, where the rate is exceeding 18% and for rate below 18% the 40% can be claimed.

14th GST Council Meeting

Date: Held on 18th & 19th May, 2017 Location: Srinagar, Jammu & Kashmir

  • The council decided on the GST Rate slabs.
  • The tax rates were finalized as Nil, 5%, 12%, 18% and 28% for different goods and services.
  • The council also approved the list of services under the reverse charge mechanism like services provided by the advocate or legal services.
  • GST Compensation cess to be levied on certain items like tobacco, aerated water, pan masala, cigarette.
  • Compensation cess of 204% was proposed to be levied on pan masala containing “Guthkha”.

13th GST Council Meeting

Date:  Held on 31st March 2017 Location:New Delhi

  • The council in this meeting discussed four important set of rules for the implementation of GST.
  • Rules related to Input tax credit, valuation, transitional provisions and composition were approved. These will be put forth in the public domain and finalized in the next meeting.
  • 1st July 2017 to be the tentative date for implementation of GST.
  • Finance Minister announced that the earlier approved five set of rules related to registration, return, payment, invoice, debit and credit notes need to be amended.

12th GST Council Meeting

Date: Held on 16th March 2017 Location: New Delhi

  • Approval of draft bills for the implementation of GST in States and Union Territories (SGST & UTGST).
  • Supplies to SEZs taxed at Nil rate.
  • Cess on luxury goods capped @ 15%.
  • Cleared the proposal to cap cess @ 15% on luxury cars and aerated drinks.
  • Cess on demerit goods like: pan masala, tobacco, cigarettes to be fixed at a higher rate.
  • Approval on five legislations relating to registration, return, payment, invoice, debit and credit notes.

11th GST Council Meeting

Date: Held on 4th March 2017 Location: New Delhi

  • Approval on IGST and CGST Bill.
  • State- wise single GST Registration.
  • Single return to be filed state wise regardless of supplies made inter-state or intra-state.
  • No registration required if the annual turnover doesn’t exceed Rs 20 lakh except in the special category states like: Arunachal Pradesh, Sikkim, Uttarakhand, and other North-Eastern states where the turnover limit is Rs. 10 Lakhs.
  • Traders, select manufacturers and restaurants having annual turnover up to Rs 50 lakh can avail the benefit of composition scheme.
  • ITC (Input Tax Credit) would be admissible on all the goods and services used for the furtherance of business, except for the few items mentioned in the law. This was done to prevent the cascading effect of taxes.
  • Cross utilization of ITC- The ITC arising out of payment of taxes to central law can be set off or cross utilized for the payment of taxes to the state or union territories.
  • Mechanism of ISD (Input Service Distributor) retained under the service tax law.
  • Sigh of relief to exporters- The provision for 90% refund to exporters within 7 days of filing of the refund application to avoid the lock-in of capital for exporters.
  • Single administrative interference, under which a provision has been made to authorize the tax administers from center and states to exercise powers conferred under all acts.
  • Income derived by an agriculturist from the cultivation of land will be exempted under the GST law.
  • Provision made for Advance Ruling Authority.
  • The council also made Exhaustive provisions for Appellate mechanism.
  • Provisions made for seamless transitions for the taxpayers registered under the pre-GST tax regime.
  • To ensure the benefit of reduction in taxes is passed on to the customers, the council made exhaustive Anti-Profiteering Provisions.
  • A taxpayer going through the difficult times or is not in a state to pay GST can pay the GST amount in installments on the approval of the commissioner.
  • Lenient Penal provisions as the law is still in its infant stage.
  • TCS (Tax Collected at Source) for e-commerce capped at 1%.

10th GST Council Meeting

Date: Held on 18th February 2017 Location: Udaipur, Rajasthan

  • GST Compensation Bill gets the final nod in the meeting. The approval of the bill was an important decision taken as, it seeks to explain the way the states will be compensated in case of revenue loss arising in the first five years post implementation of GST.
  • No additional powers given to CAG under the indirect tax law.
  • Items under different tax slabs to be categorized in the subsequent meetings.

9th GST Council Meeting

Date: Held on 16th January 2017 Location: New Delhi

  • The GST Council concluded its 9th meeting. It resolved the controversial issue of Dual Control between the center and state.
  • The center and state will assess the taxpayers based on turnover:
    Who Evaluated by
    90% of Assesses with annual turnover of 15 million or less States
    Remaining 10% of Assesses with annual turnover of 15 million or less Center
    Assesses with annual turnover of more than15 million Center and state in 50:50 ratio
  • The earlier date of April 1 for the launch of GST revised to July 1, 2017.
  • States will also be cross-empowered for the implementation of IGST within 12 nautical miles of territorial waters.

8th GST Council Meeting

Date: Held on 3rd & 4th January 2017 Location: New Delhi

  • There was no consensus on the issue of dual control between the center and state. The state demanded to have sole control over small tax payers. The council must achieve the cut off turnover for the bifurcation of assesses between the center and state.
  • State urged the council to increase the items under the state on which cess is applicable to recover the revenue loss.
  • State also demanded taxation right on sales made within 12 nautical miles.
  • Various sectors from industry made representation to GST Council regarding implementation of GST. Sectors like Banking, insurance, IT sought for a single registration under center or state.

7th GST Council Meeting

Date: Held on 22nd & 23rd December 2016 Location: New Delhi

  • The agenda of the meeting was to build the consensus on the three legislation namely: CGST, IGST and compensation law.
  • The council reached consensus on the draft CGST and SGST legislation.
  • The Finance Minister mentioned that the states shall get 100% compensation for the revenue loss on the implementation of GST, to be paid in every two months.
  • The issue of dual control will be resolved in the subsequent meeting.

6th GST Council Meeting

Date: Held on 11th December 2016 Location: New Delhi

  • Target date announced for the implementation of GST is 1st April 2017 and the last date for its implementation will be 16 September 2017.
  • Finance Minister assured that the next meeting would address the issue of dual control and cross empowerment between the center and state.
  • The two important decision on laws i.e. compensation and IGST will be taken in the 7th GST meeting.
  • Detailed discussion on CGST and SGST model. Also, few clauses of model GST law to be revamped.

5th GST Council Meeting

Date:  Held on 2nd & 3rd December 2016 Location: New Delhi

  • The council discussed various issues like: cross empowerment between center and state, Tax slabs for various categories of products, additional cess on demerit goods.
  • There was no conclusion drawn on the issues in this meeting.

4th GST Council Meeting

Date: Held on 3rd & 4th November 2016 Location: New Delhi

  • Administrative issues between the center and state as to how much control the center or state will have on assessees registered under VAT, excise and service tax.
  • To resolve this issue the council suggested two divisions i.e. Horizontal and vertical.
  • Under the Horizontal division, the assessees will be divided between center and state in a ratio for 3 years.
  • In the vertical division, the assessees will be divided based on the turnover also, known as the cross empowerment.

3rd GST Council Meeting

Date: Held on 18th & 19th October 2016 Location: New Delhi

  • 1st April announced as the date for the roll out of GST, hence this meeting is considered as an important one.
  • Rate of GST is the most important agenda as the prices of products would depend on it.
  • Discussion on the compensation to states took place, where three proposals were discussed.
  • The GST Bill has provision to compensate states in the first 5 years of the launch of GST.

2nd GST Council Meeting

Date: Held on 30th September 2016 Location: New Delhi

  • Total 6 issues have been finalized so far.
  • The draft rules related to Registration, Return, Refund, Payment, Invoices and Debit & Credit notes were given an approval.
  • Exemptions to North-East states will be provided by way of refunds.
  • Decisions to be made for specific exemptions on business entities, goods and services.
  • CBEC will also bring a solution regarding the control on service tax payers, as in the previous meeting it was decided that they would be under the jurisdiction of Center but the state didn’t agree on this, as it will result in a huge revenue loss for the state.
  • It was decided to compensate states on the fixed growth rate of 14%

1st GST Council Meeting

Date: Held on 22nd & 23rd September 2016 Location: New Delhi

  • The first meeting was held with the determination to launch GST on 1st April 2017.
  • Rules related to composition scheme, GST Rates and threshold limit were discussed.
  • It was decided to charge 1-2% of GST from traders, having turnover of up to Rs 50 lakh annually.

For all your latest GST related news/queries, consult the experts at earlyGST by H&R Block India.

 

Jyoti
Jyoti
Jyoti works as a Tax Advisor at H&R Block in Business Services team (GST Centre of Excellence). She has experience in handling the Enquiry Management System, client conversion and escalation. She enjoys writing and explaining complicated tax related topics in a simplified manner.

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