Changes Made in 20th GST Council

gst-council-extract-of-decisions-on-services

The Goods and Services Tax (GST) Council in its 20th meeting on Saturday decided to cut the tax rate for job work for the entire value chain of textiles sector to 5 per cent along with a reduction in rate for tractor parts to 18 per cent from 28 per cent. Also, the Council gave in-principle approval to the e-way bill rules, which envisages a technology-driven tracking of movement of goods worth more than Rs 50,000 and for sale beyond 10 km in distance. The e-way bill rules are likely to come into force from October 1.

Earlier, the GST for job works related to textile yarns, other than man-made fibers and textile fabrics, was 5 per cent, while for man-made fibers, it was 18 per cent.

The GST rate for government work contracts, for both central and state governments, was also cut to 12 per cent with input tax credit from the earlier decided rate of 18 per cent, Jaitley said.

Extract of Decisions taken on Services at 20th GST Council Meeting on 5 August 2017

S. No. Description of service From To
1. Job work services in respect of the textiles and textile products (including MMF yarn, garments, made-ups, etc. falling in Chapters 50 to 63) 18%/5% 5%
2 Services by way of printing of newspapers, books (including Braille books), journals and periodicals where only content is supplied by the publisher and the physical inputs including paper used for printing belongs to the printer 18% with full ITC 12% with full ITC
3 Services by way of printing of newspapers, books (including Braille books), journals and periodicals using physical inputs owned by others (including an unregistered publisher/supplier) 18% with full ITC 5% with full ITC
4 Works contract services provided to Government, local authority or governmental authority and in respect of post-harvest storage infrastructure for agricultural produce, mechanized food grain handling system 18% with full ITC 12% with full ITC
5 Margin/commission payable to Fair Price Shop Dealers by Central/ State Governments 18% with full ITC Nil
6 Admission to planetarium 28% with full ITC 18% with full ITC
7 Rent-a-cab service Allowed option of 12% GST with full ITC. 5% GST with no ITC will also continue
8 Goods Transport Agency Service (GTA) Allowed option of 12% GST with full ITC under forwarding charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginning of financial year)
9 In case of small house-keeping service providers (plumbers/carpenters) providing services through Electronic Commerce Operators (ECO), liability to pay GST placed on ECO
10 Partnership firm or a firm includes LLP ( Limited liability Partnership) for the purposes of levy (including exemption therefrom) of GST on legal services.
11 To clarify that legal services (including representational services) provided by an individual advocate or a senior advocate or a firm of advocates (including LLP) provided to a business entity in taxable territory are covered under reverse charge mechanism
12 Goods required by FIFA and Services provided by and to FIFA and its subsidiaries in connection with FIFA U­17 World Cup to be hosted in India in 2017 shall be exempted from GST
13 New crop insurance schemes Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced from Kharif 2016­-17 in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS), and Restructured Weather Based Crop Insurance Scheme (RWCIS) introduced in place of Weather Based Crop Insurance Schemes, shall be extended exemption from GST.

 

Note – Please note that the above article is part of our continuous research on the related matters. It is based on our interpretation of related regulations which may differ person to person. Readers are expected to take expert opinion before relying on above.

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