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Highlights of 16th GST Council Meeting dated 11th June 2017

Looking for the updates of the 16th GST Council Meeting? Here are the most important ones. 

 

The 16th GST council meeting was held on 11th June 2017 was chaired by Arun Jaitely with the aim of discussing and deciding upon:

 

  • Confirmation of the minutes of the 15th GST Council meeting held on 3rd June 2017
  • Approval of amendments to the draft GST Rules and related Forms.
  • Rate adjustments, if any, based on the representations received from Trade and Industry – Goods/services.

 

As proposed by the agenda certain rates were revised. As supposedly out of 133 representations that were made, GST Council reduced tax levels in 66 cases. Turnover limit for composition scheme was increased and the rules and format of the accounts and records were also finalised in 16th GST Council meeting.

 

Revision in the rates: had been done on the basis of usability and frequency of the goods and new rate is near to existing indirect tax.

 

  • Movie tickets costing Rs 100 and below, Kajal and computer printers will now attract 18%, against 28% proposed earlier, while movie tickets costing above Rs 100 will continue to attract 28% GST. 
  • The Gst rates on Kitchen items like pickles, mustard sauce and murabba will be 12%, earlier it was 18%. Also, tax rates on cashew nuts have been reduced from 12% to 5%. lower tax incidence could help improve tax buoyancy and keep inflation low however Reducing the tax rate meant a revenue impact for the government.

 

Threshold limit of Composition Scheme was revised in the 16th GST Council meeting held on 11th June, 2017. Turnover limit for composition levy for CGST and SGST has been increased to 75 lakh for traders, manufacturers and restaurants. while earlier it was 50 lakh. The scheme allows traders, manufacturers and restaurant owner to pay taxes at the rate of 1%, 2% and 5% respectively.

 

However, whether the same increased turnover limit for composition levy will apply in case of special Category states or not will be decided in the next GST Council meeting. Know what decision came in 17th GST Council meeting.

Certain Exemptions were also supposedly made in 16th GST Council Meeting as under:

  • IGST Exemption under GST were revised for:

  1. Bilateral Commitments – Imports under Agreement between India and Pakistan / Bangladesh for regulation of Bus Service.
  2. Technical Exemptions for Temporary import/Re-Import.

 

  •  Exemption from registration to certain class:

  1. Individual advocates (including senior advocates)
  2. Individual sponsorship service providers (including players)    

 

  • The exemption list for supply of services to be continued in GST as approved by the GST Council after S. no. 83 following should be added:

 

SN Supply of Services
84 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution
85 Services provided to the Government under any insurance scheme for which total premium is paid by Government
86 Services provided to the Government under any training programme for which total expenditure is borne by the Government

 

Revised GST Rate for Certain Services in the schedule of GST Rates for services as approved by the GST Council, after S.no. 13, the following shall be inserted:

SN Supply of Services GST Rate
13A Services by way of job work in relation to –

a) Textile yarns (other than man-made fibre/filament) & textile fabrics

b) Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN

c) Printing of books (including braille books), journals and periodicals

d) Processing of leather

 5 % with full ITC
27A Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is Rs. 100 or less. 18% with Fill ITC

 

Revised GST Rate for Certain Goods:

SN Description of Goods Earlier Rate Revised Rate
1. Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc. 5% 0%
2. Cashew nut 12% 5%
3. Cashew nut in shell 12% 5% [under reverse charge]
4. Raisin 12% 5%
5. Cereal grains hulled 5% 0%
6. Palmyra jiggery 18% 0%
7. Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly 18%/12% 12%
8. Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces 18% 12%
9. Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings 28% 18%
10. Bari made of pulses including mungodi 18% 12%
11. Ice and snow 12% 5%
12. Salt, all types 5% 0%
13. Bio gas 12% 5%
14. Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 12% 0%
15. Insulin 12% 5%
16. (i) Menthol and menthol crystals,

(ii) Peppermint (Mentha Oil),

(iii) Fractionated / deterpenated mentha oil (DTMO),

(iv) Dementholised oil (DMO),

(v) Spearmint oil,

(vi) Mentha piperita oil

(vii)

 18% 12%
17. Kajal [other than kajal pencil sticks] 28% Nil
18. Kajal pencil sticks 28% 18%
19. Agarbatti 12% 5%
20. Dental wax 28% 18%
21. All diagnostic kits and reagents 18% 12%
22. Plastic beads 28% 12%
23. Plastic Tarpaulin 28% 18%
24. (i) School satchels and bags other than of leather or composition leather;

(ii) Toilet cases [4202 12 10];

(iii) Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40];

(iv) Handbags of other materials excluding wicker work or basket work [4202 29 10].

 28% 18%
25. Exercise books and note books 18% 12%
26. Kites 12% 5%
27. Children’s’ picture, drawing or colouring books 12% Nil
28. Coir mats, matting and floor covering 12% 5%
29. Headgear and parts thereof 28% 18%
30. Human hair, dressed, thinned, bleached or otherwise worked 28% 0%
31. Fly ash blocks 28% 12%
32. Precast Concrete Pipes 28% 12%
33. Salt Glazed StoneWare Pipes 28% 18%
34. Glasses for corrective spectacles and flint buttons 18% 12%
35. Rough precious and semi-precious stones 3% 0.25%
36. Aluminium foil 28% 18%
37. Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs 18% 12%
38. All goods, including hooks and eyes 28% 18%
39. Pawan Chakki that is Air Based Atta Chakki 28% 5%
40. Fixed Speed Diesel Engines 28% 12%
41. Rear Tractor tyres and rear tractor tyre tubes 28% 18%
42. Rear Tractor wheel rim, tractor centre housing, tractor housing transmission,tractor support front axle 28% 18%
43. Weighing Machinery [other than electric or  electronic weighing machinery] 28% 18%
44. Printers [other than multifunction printers] 28% 18%
45. Ball bearing, Roller Bearings, Parts & related accessories 28% 18%
46. Transformers Industrial Electronics 28% 18%
47. Electrical Transformer 28% 18%
48. Static Convertors (UPS) 28% 18%
49. Recorder 28% 18%
50. CCTV 28% 18%
51. Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc. 28% 12%
52. Set top Box for TV 28% 18%
53. Computer monitors not exceeding 17 inches 28% 18%
54. Electrical Filaments or discharge lamps 28% 18%
55. Winding Wires 28% 18%
56. Coaxial cables 28% 18%
57. Optical Fiber 28% 18%
58. Perforating or stapling machines (staplers), pencil sharpening machines 28% 18%
59. Baby carriages 28% 18%
60. Intraocular lens 18% 12%
61. Spectacles, corrective 18%
62. Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers) 28% 18%
63. Bamboo furniture 28% 18%
64. Playing cards, chess board, carrom board and other board games, like ludo, etc. [other than Video game consoles and Machines] 28% 12%
65. Swimming pools and paddling pools 28% 18%
66. Muddhas made of sarkanda and phool bahari jhadoo 5% 0%
67. Postage or revenue stamps, stamp-postmarks, first-day covers, etc. 12% 5%
68. Numismatic coins 12% 5%
69. Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability [These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)] – 5%

Tags: 16th GST Council MeetingGST council meeting
6 years ago
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