Latest Updates on GST Rate Changes

Summary of 23rd GST Council

The GST Council has reviewed the tax rates, returns filing cycle, Late filing fees and much more on 10th Nov 2017, bringing in some relaxation to businessmen, traders, and consumers.

Update on GST

All things considered, tax rates on 177 items are brought down to 18% from 28% to provide relief to consumers and businesses.

  • Many of the items and services which were earlier taxed at 28% now attracts the tax of 18% only. The list includes wire and cables, Furniture, mattress trunk, suitcase, detergents, shampoos, hair cream, hair dyes, makeup, fans, lamp, rubber tubes and microscope. Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing powder, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches.

Previously, 12% GST on food bill was levied in non-AC restaurants and 18% in AC ones.

  • Now, uniform 5% tax is levied on all restaurants (Both AC and non-AC)
  • At the same time, 18% GST is levied on those starred-hotel restaurants that charge Rs 7,500 or more per day room (ITC is allowed for them).
  • On the other hand, 5% GST will be applicable to restaurants charging less than Rs 7,500 room tariff (with no ITC benefit). 

Only luxury and sin goods left in the highest tax i.e 28% GST.

  • To point out, the list includes pan masala, aerated water, and beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, ACs, dishwashing machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yacht. 

Tax on some items cut down to 12 % from 28%.

  • Namely, wet grinders and armoured vehicles

Tax on few others (13 items) shifted to 12% from 18% GST bracket.

  • Markedly, the list includes condensed milk, refined sugar, pasta curry paste, diabetic food, medical grade oxygen, printing ink, handbags, hats, spectacles frame and bamboo/cane furniture 

Tax on 6 items moved from 18% to 5% bracket.

  • Notably, Puffed rice chikki, flour of potatoes, chutney power, fly sulphur.

Tax on 8 items have been shifted from 12% to 5% GST slabs

  • Specifically, idli dosa batter, finished leather, coir, fishing net, worn clothing and desiccated coconut

6 items would attract 0% GST tax as against 5% now

  • Chiefly, Guar meal, hop cone, certain dried vegetables, unworked coconut shell and fish

Penalty on late filing reduced:

  • For nil (0%) tax, late filing penalty reduced to Rs 20 per day from Rs 200.
  • For others, late filing penalty reduced from Rs 200 per day to Rs 50 per day.

Invoices

  • Invoices for Nov, 2017 to be filed by Jan 10, 2018
  • For Dec, 2017 to be filed by Feb 10, 2018
  • For Jan 2018 to be filed by March 10, 2018


Tax Notes

  • In the current year 2017, all taxpayers will have to file only GSTR-1
  • Additionally, nobody can charge tax over and above MRP

Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 on a quarterly basis as per following frequency:

  • Jul – Sep: 31st Dec 2017
  • Oct –  Dec: 15th Feb 2018
  • Jan – Mar: 30th April 2018

On the other hand, taxpayers with annual aggregate turnover more than Rs.1.5 crore need to file GSTR-1 on monthly basis as per following frequency:

  • Jul – Oct: 31st Dec 2017
  • Nov: 10th Jan 2018
  • Dec: 10th Feb 2018
  • Jan: 10th Mar 2018
  • Feb: 10th Apr 2018
  • Mar: 10th May 2018


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