The GST Council ended its 25th Council meet on 18th Jan 2018 in Vigyan Bhawan, New Delhi. The council in series of discussion with members recommended many relieving measures in GST rates and policies covering all major sectors and commodities. On council recommendations, Finance Minister Arun Jaitely issued clarifications on issues related to present GST rates and taxability procedures of various goods and services.
The stated meet accepted new GST rates for 29 goods and 53 services which will come into force from 25th January as briefed officially by Finance Minister.
Quick Highlights of 25th GST Council Meet
1. Filing of GST 3B to continue till next meet : The council felt that the filing of GST 3B should continue along with invoice filing by sellers and suppliers till next meet announcement. They just have to provide details about who they supplied to. The discussion worked to simplify return filing process which will help to detect evasion in matching of invoices with 3B filings .
2. Roll out of E-Way Bill from 1st Feb : The council noted of the fact that till now they’ve been relying on unilateral declarations and opinions of traders in GST collections . They also asserted a need to define some anti-evasion measures. E-Way bill is one such measure which will get to all transactions from 1st Feb across the country.
3. To Re-introduce RCM – The Law Review Committee on recommendation of other members added to reintroduce reverse charge mechanism (RCM) only for dealers registered under composition scheme.
4. Dripping Down of GST Rates :
|Goods and Services||Old GST Rates||New GST Rates (Recommended)|
|Bio – Diesel||18%||12%|
|Packaged Drinking Water||18%||12%|
|Drip Irrigation System||18%||12%|
|Sugar boiled Confectionery||18%||12%|
|LPG Supply by Private Firms||18%||5%|
|Velvet Fabric Fibre||12%||5%|
|Mining/Driling Natural Gas||18%||12%|
5. Division of IGST Credit : The Council also laid stress on amount of IGST collected , as it was decided to provisionally divide the Rs 35000 crore collected as IGST among the centre and states. This will ease up indirect tax position of both centre and state.
The Bihar Finance Minister Sushil Modi, said ‘The GST council would consider the real estate, petrol products and electric duties under GST in its next meet’. ‘Opting usage of an E-Way bill policy will definitely work on tax evasion, those who do not take E-way bill seriously will be penalised ‘he added.
In November, the council bought down taxes on over 200 goods , while most of the items were shifted from 28% to 18% bracket still it has been reported that the GST collections is being declining round the figure.
Also Read : How to Spot a Fake GST Bill