In the 23rd GST Council Meeting, GST rate reduction for various goods and services was announced. A major highlight of the 23rd GST Council Meeting was the reduction of GST rates for various goods listed under the 28% slab. The GST rates changes will tremendously reduce the tax burden on the common man and boost the economy. In this article, we look at a summary of GST rate changes announced in the 23rd GST Council Meeting held on 10th November 2017.
Highlights of the 23rd GST Council Meeting
The goods and services on the 28% slab list were severely reduced to a mere 50 from the previous 228 items, which brought smiles to many faces. The items remaining on the trimmed list now only include luxury and “sin” goods.
Additionally, restaurants will only be taxed at 5%, however, input tax credit will not be available. This reduction will benefit consumers directly with an increase in online food ordering and eating out.
Moreover, the penalty fee for late filing was drastically reduced from Rs200/day to Rs20/day.
Nepal and Bhutan exporters can now avail of input tax credit on output services, also.
The central government will take care of the compliance for diplomatic mission/UN organization, who will each be issued UIN.
A manual filing process for advance ruling, on future or completed transactions, has been introduced.
Registration exemption of service providers whose aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs for special states) now includes e-commerce operators, interstate and intra-state suppliers.
GST Rate Reduced from 18% to 12%
1. For the following goods, GST rate has been reduced from 18% to 12%:
2. Condensed milk
3. Refined sugar and sugar cubes
5. Curry paste, mayonnaise and salad dressings, mixed condiments and mixei seasoning
6. Diabetic food
7. Medicinal grade oxygen
8. Printing ink
9. Hand bags and shopping bags of jute and cotton
10. Hats (knitted or crocheted)
11. Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
12. Specified parts of sewing machine
13. Spectacles frames
14. Furniture wholly made of bamboo or cane
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