With the 37th GST Council meeting held on the 20th of Sept in Goa, there comes the latest GST news and changes. Smt. Nirmala Sitharaman, the Union Finance Minister, lowered tax on a number of goods and services to boost demand due to which small businesses like yours will enjoy the maximum benefit.
Here are the highlights of 37th GST Council and the latest GST news:
- Corporate tax rate reduces from 34% to 25.17% (Inclusive of cess and surcharges), effective from April 2019.
- For domestic companies, tax is reduced from 34.9% to 25.17%.
- For companies less than Rs 400 cr turnover – effective tax comes down from 29.15% to 25.2%.
The tax cut will allow companies to retain and use a larger share of their profits in growing their business.
- For hotel rooms which charge less than Rs 1,000/night, there will be no tax.
- For rooms which cost between Rs 1,000 to Rs 7,500 per night, will apply a tax of 12% instead of 18% that existed earlier.
- While the rooms which charge more than Rs 7,500 will now attract 18% tax, down from 28%.
- GST rates on slide fasteners, wet grinders, and marine fuel reduces greatly.
- Tax on caffeinated beverages like coffee, tea, energy drinks etc hikes up to 40%.
- Composition taxpayers need not file GSTR-9A for the FY 2017-18 and FY 2018-2019
- From April 2020, the new and simplified GST return system will be implemented.
- If your turnover is up to Rs.2 Cr, GSTR-9 is optional. You may or may not file GSTR-9 this time.
- Soon, you can’t claim your ITC unless you have filed GSTR-1.
- From 24th September, you’ll get your refunds faster with the implementation of integrated refund system.
- While registering under GST, you need to submit your Aadhar card.
- Aadhar card may become mandatory to claim your GST returns.
- Reduced CESS tax on small cars and people carriers.
- Any new domestic manufacturing businesses and subsidiaries (on or after August 1, 2019) will be taxed at 15% or an effective 17% with the condition that businesses begin production before the end of the financial year 2023.
All in all, tax reductions will certainly give tremendous benefits to the MSMEs which in turn will boost economic growth.
What do you think about the latest GST news? Please comment below.
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