Key Takeaways from the 28th GST Council Meeting

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The 28th meeting of the GST Council has introduced several changes in the present Goods and Services Tax (GST) system. Some of the key decisions taken by the Council after a nine-hour meeting is summarized below.
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• Quarterly returns for traders having turnover of upto Rs 5cr annually approved ( tax payments to continue on monthly basis)
• No decision taken on 1% sugar cess
• Approved rate reduction for several items in 28% slab.
• Approved simpler returns filing process
• GST rate of over 36 items reduced.
• GST on all leather items cut from 28% to 18%
• GST on hotels would now be on actual tariff & not declares tariff
• Centre owes Rs 3000 cr worth IGST to Delhi Govt
• GST on ethanol reduced from 18% to 5% for purchase by OMCs
• Sanitary napkins exempted from GST
• GST on bamboo flooring reduced to 12%
• Foot wares below rupees 1000 to attract 5% GST
• GST on consumer electronics - TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder cut from 28% to 18%
• Rakhis 100% exempted from GST
• GST rates cut to 18% for special purpose vehicles, work truck, trailers
• Stone, marble and wood deities gets GST exemption
• GST rate on TV upto size 68 cm cut to 18% from 28% earlier. GST rates for scent sprays & similar toilet sprays cut to 18% from 28%
• Revenue loss of Rs 10,000 cr to Rs 15,000 cr seen from rate rationalisation
• 17 items removed from 28% slab to lower tax slab
• Rate for Paints and Varnishes reduced from 28% to 18%
• Lithium ion batteries, vacuum cleaners, food grinders, mixers, storage water heaters, head dryers, hand dryers, paint,varnishes, water cooler, milk cooler, ice cream coolers,perfumes, toilet sprays and toilet preparation brought to 18% from 28% slab
• GST rates for scent sprays & similar toilet sprays cut to 18% from 28%.
• GST rates cut for mixer, juicer, vacuum cleaner, grinder to 18%
• GST rate reductions to be effective from July 27th 2018
• GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps ets reduced to 12%
• Exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh, Himalaya, Sikkim, increased from Rs 10 lakh to 20 lakh
• GST council has cleared 46 amendments which will be passed in Parliament
• RCM will be deferred till 30th September 2019
• Special meeting of GST council will be held on 4 August in Delhi that will be focussed on MSMEs (Micro, Small and Medium Enterprises ) sector

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REGARDS
ACA SOURAV BAGARIA