Saturday, 11 November 2017

GST – LATEST

Press Release

Changes recommended in Composition Scheme

i.            Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant. 
ii.          Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same

iii.        Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum. iv. The changes recommended by GST Council at (iii) above will be implemented only after the necessary amendment of the CGST Act and SGST Acts. 

GST – LATEST-7

E.          CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

S.
No
Chapter/
Heading/
Subheading/
Tariff item
Description
Present IGST Rate
IGST Rate Recommended 
1.  
0402
Skimmed              milk         powder,   or
concentrated milk
[To extend the benefit of notification No. 30/2017-
Integrated Tax (Rate) dated 22nd September, 2017 applicable in relation to milk distributed through dairy co-operatives to milk distributed through companies registered under the companies Act.]
Exempt from
IGST, subject to
certain conditions, under  notification No.
30/2017Integrated Tax
(Rate) dated 22nd
September, 2017
Nil
[On inter-state supply]
2.  
30
Imported Lifesaving Medicines for personal use supplied free of cost by overseas supplier, subject to conditions that: 
i.              Drugs and medicines are supplied free of cost for free, for personal use, 
ii.            Certification by the DGHS of Centre or State [or an equivalent officer of the State] that these medicines are
lifesaving; and  
iii.          Other specified conditions to ensure that        the           proposed exemption reaches to intended patients]
12/5%
Nil
[On import]


3.  
Any chapter 
All goods, vessels, ships, rigs [other than motor vehicles] etc. imported under lease, subject to condition that IGST is paid on such lease amount.
At          present,   exemption               is
available for
i.        Imported aircrafts and aircraft engines under lease;
ii.      Imported goods for temporary period under lease;
iii.    Imported Oils rigs and
associated goods under lease

Applicable IGST rate
Nil
[On import]






4.  
All goods
ATA Carnet System

Expanding the scope of exemption from IGST, so as to extend the exemption to:
i.            professional equipment by accredited press persons who visit India for covering national / international events
ii.          equipment             for broadcasting of events
(sound and television) iii.              goods imported for sports purposes and
iv.         testing, measurement and calibration equipment. subject to existing condition of re-export of these goods within specified   period                and          other condition.
Temporary import is exempt
Nil [ On import]
5.  
Any chapter
Specified goods, including rifles, pistols, bows, imported by a sports person of outstanding eminence,  subject to specified condition  
12%,18%, 28%
Nil
[On imports]

   
F.           Modification in definition/ clarification in respect of changes in GST/IGST rates on goods

S.
No
Chapter/
Heading/
Subheading/
Tariff item
Description
Present GST Rate
Modification/clarification  Recommended 
1.  
7, 10, 11
Cereals, pulses, flours 
a)     Food grains, pulses and flours put up in unit containers and bearing a registered brand name or a brand name on which an actionable claim or enforceable right in court of law is available attract 5% rate. 
b)     For this purpose, registered brand name means brand names registered as on 15th May 2017, irrespective of
Branded -
5%
Unbranded
-Nil
a) The Council has recommended following modification:  
i.       Brand name will include ‘brand name registered as on 15th
May         2017        or
thereafter,  irrespective of whether or not the brand is
subsequently deregistered. 
ii.     Similar changes in other clauses of the definition. 


whether or not the brand is
subsequently deregistered.


b) To clarify that  the condition of foregoing actionable claim of enforceable right [to be eligible for exemption] for being eligible to Nil GST rate applies to any brand [as defined in Notification], whether registered or not.
2.  
50, 51, 52,
53, 54, 55,
5801, 60
Textile fabrics
5%/12%
As regards export of fabrics- to clarify that the manufacturer of such fabrics will be eligible for refund of unutilized input tax credit of GST paid on inputs [other than capital goods] in respect of fabrics manufactured and  exported by him.
3.  
6913
Terracotta idol figurines of the Gora Dev (tribal horse God)
Nil
Nil
[To clarify that terracotta idols, being also idols of clay, are eligible for Nil GST rate].
4.  
84 or 85
E-waste
5%
5%
To change the definition of e-waste, so as to restrict the 5% concessional GST rate only to electrical and electronic equipment, listed in Schedule I of the E-Waste (Management) Rules, whole or in part if discarded as waste by the consumer or bulk consumer
5.  
89
Rigs, tools and spares, and all goods on wheels [like cranes], removed from one State to other State
No supply
To include these goods in within the purview of the Circular 1/1/2017-IGST dated 07.07.17, by suitably modifying / reissuing the said Circular.

6.  
9002
Intraocular Lens
12%
12% 
a)     Change in classification from 9002 to 9021] 
b)     For the past period clarification to be issued stating that for the period upto this change intra


GST – LATEST-6

A.          CHANGE RECOMMENDED IN GST RATES ON CERTAIN GOODS:

S.
No.
Chapter/
Heading/ Subheading/ Tariff item
Description
Present GST Rate
GST Rate
Recommended 
1.
 0202/0203/02
04/0205/0206
/0207/0208/0
209/0210/
0504
(1)   All goods [except fresh or chilled], put up in unit container and, -  (a) bearing a registered brand name; or 
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available
[other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the subject to the conditions as in the
Foot Note

(2)   All goods [except fresh or chilled], other than (1) above.
12%














12%/5%
5%








Nil

2.
 0303/0304/03
05/0306/0307
/0308


All goods [except fresh or chilled], other than those put up in unit container and, - 
(a)             bearing a registered brand name; or 
(b)            bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the subject to the conditions as in the
Foot Note
5%
Nil


3.
 0402 91 10,  0402 99 20
Condensed milk
18%
12%.
4.
               0710

Vegetables (uncooked or cooked by steaming or boiling in water), frozen other than those put up in unit container and, 
5%
Nil


(a)   bearing a registered brand name; or 
(b)  bearing a brand name on which an actionable claim or enforceable right in a court of law is available
[other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the
Foot Note


5.
               0714
Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, dried, whether or not sliced or in the form of pellets
 5%
Nil
6.
               0714 
Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, frozen, other than those put up in unit container whether or not sliced or in the form of pellets. and, -  (a) bearing a registered brand name; or 
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available
[other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the Foot Note
5%
Nil
7.
               08


Dried makhana, whether or not shelled or peeled other than those put up in unit container and, - 
(a) bearing a registered brand name; or  (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the Foot Note

5%
Nil 

8.
 0801
Desiccated Coconut 

12%
5%
9.
 1105
1. Flour of potatoes put up in unit container and, -
18%

5%



(a)     bearing a registered brand name; or 
(b)    bearing a brand name on which an actionable claim or enforceable right in a court of law is available
(other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily), subject to the conditions as in the
Foot Note

2. Meals, powder, flakes, granules and




























pallets of potatoes other than those put up in unit container and, - (a) bearing a registered brand name; or 
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available
(other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily), subject to the conditions as in the Foot Note
18%
Nil


10.
 1106 10 10
Guar meal
5%
Nil
11.
 1203    
Copra other than of seed quality
5%
5%
12.
 1210 10 00
Hop         cones,     neither     ground     nor
powdered nor in the form of pellets
5%
Nil
13.
               1404 [other than 1404 90
10, 1404 90
40, 1404 90 50]
Coconut shell, un-worked.
5%
Nil

14.
               1701
Khandsari sugar
5%
Nil
15.
               1701 91, 1701 99
All goods, including refined sugar containing added flavouring or colouring matter, sugar cubes other those which attract are at 5% or Nil GST.

18%
12%
16.
               1704
Puffed Rice Chikki, Peanut Chikki, Sesame Chikki   til chikki, til patti, til revdi, sugar makhana, gajak, groundnut sweats  Khaja, Khajuli, Anarsa,  sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana
18%
5%



17.
               1902

Pasta, whether or not cooked or stuffed (with meat or other substances) or
18%
12%


otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared


18.
               2102
Other single cell micro-organisms, dead (but not including vaccines of heading 3002) 
18%
12 %
19.
 2103 90 10
Curry paste
18%
12%
20.
 2103 90 30
Mayonnaise and salad dressings
18%
12%
21.
 2103 90 40
Mixed, condiments and mixed seasoning
18%
12%
22.
 2106 
Idli, dosa batter 
12%
5%
23.
 2106 90 91
Diabetic foods
18%
12%
24.
 2106 90 99
Chutney Powder
18%
5%
25.
 2503 00 10
Sulphur recovered as by-product in refining of crude oil
18%
5%

26.
 26
Uranium Ore Concentrate
5%
Nil
27.
 2621
Fly ash 
18%
5%
28.
 2804 40 10
Medicinal grade oxygen
18%
12%
29.
 3215
Printing ink, writing or drawing ink and other inks, whether or not concentrated or solid [(other than Fountain pen ink and Ball pen ink)]
18%
12%
30.
 4107
Leather further prepared after tanning or crusting, including parchment dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 4114
12%
5%
31.
 4112
Leather further prepared after tanning or crusting, including parchment dressed leather, of sheep or lamb, without wool on, whether or not split, other than leather of heading 4114
12%
5%
32.
 4113
Leather further prepared after tanning or crusting, including parchment dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 4114
12%
5%
33.
 4114
Chamois (including combination chamois) leather; patent leather and patent laminated leather; metallised leather
12%
5%
34.
 4115
Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for the
12%
5%


manufacture of leather articles; leather dust, powder and flour


35.
 4202 22 20
Hand bags and shopping bags, of cotton
18%
12%


36.
 4202 22 30
Hand bags and shopping bags, of jute
18%
12%

37.
 5201
Raw Cotton, supplied by agriculturist to a registered person – to issue notification under 9(3) of the CGST/SGST Acts to prescribe that tax on such supplies is to be paid by the recipient under reverse Charge

5%
5% (under reverse charge)

38.
 5607
a)     Coir, cordage and ropes
b)     Jute Twine

12%
5%
39.
 5608
Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials
12%
5%
With no refund of unutilised input tax credit
40.
 5609
Products of coir

12%
5%
41.
 5806
Narrow Woven Fabrics including
Newar Cotton 
12%
5% 
With no refund of unutilised input tax credit
42.
 6309
Worn clothing and other worn articles; rags
5%/
12% depending on sale value
5%

43.
 6505
Hats (knitted /crocheted) or made up from lace or other textile fabrics.
18%
12%
44.
 6815
(a)   Fly ash bricks 
(b)  Fly ash aggregate with 90% or more fly ash content.
12%

18%
5%

5%
45.
 7113
Bangles of lac / shellac

3%
Nil
46.
 8432
Parts [falling under heading 8432] of agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports-ground
rollers falling under 8432 
18%
12%
47.
 8433
Parts [falling under heading 8433] of harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce falling under
18%
12%


heading 8433 [other than machinery of heading 8437]


48.
 8452
Parts [falling under heading 8452] of Sewing machines falling under heading 8452
18%
12%
49.
 9003
Frames and mountings for spectacles, goggles or the like, and parts thereof
18%
12%
50.
 9021
Orthopaedic appliances, including crutches, surgical belts and trusses
5%
5%
51.
 9403
Furniture wholly made of bamboo or cane 
18%
12%
52.
 9507
Fishing hooks
12%
5%
53.
 40, 84, 94
Specified parts of aircraft, namely,
a)     aircraft engines [84071000, 8411];
b)     aircraft tyres [40113000];
c)     aircraft seats [94011000]
18% / 28%
5%
54.
 Any Chapter 
(a)   Scientific and technical instruments, apparatus, equipment (including computers);
(b)  Accessories, parts, consumables and live animals (for experimental purposes);
(c)   Computer software, Compact Disc Read Only Memory (CD-ROM), recorded magnetic tapes,
microfilms, microfiches;
(d)  Proto-types, the CIF value of which does not exceed Rs.50000 in a financial year for import by Public funded research institution or a university or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a Regional Engineering College, other than a hospital
[Subject to specified conditions]
18%/28%
5%


Foot Note: 
(i)              The phrase “unit container” means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such package.

(ii)            (a) The phrase “brand name” means brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some
person using such name or mark with or without any indication of the identity of that person.  
(b) The phrase “registered brand name” means, - 
(A) a brand registered as on the 15th May 2017 or thereafter under the Trade Marks Act, 1999 irrespective of whether or not the brand is subsequently deregistered; 
(B) a brand registered as on the 15th May2017 or thereafter under the Copyright Act, 1957(14 of 1957); 
(C) a brand registered as on the 15th May2017 or thereafter under any law for the time being in force in any other country.

(iii)          For foregoing an actionable claim or enforceable right on a brand name, - 
(a)   the person undertaking packing of such goods in unit containers which bears a brand name shall file an affidavit to that effect with the jurisdictional commissioner of Central tax that he is voluntarily foregoing his actionable claim or enforceable right on such brand name as defined in Explanation (ii)(a); and 
(b)  the person undertaking packing of such goods in unit containers which bear a brand name shall, on each such unit containers, clearly print in indelible ink, both in English and the local language, that in respect of the brand name as defined in Explanation (ii)(a) printed on the unit containers he has foregone his actionable claim or enforceable right voluntarily.


Provided that, if the person having an actionable claim or enforceable right on a brand name and the person undertaking packing of such goods in unit containers are two different persons, then the person having an actionable claim or enforceable right on a brand name shall file an affidavit to that effect with the jurisdictional Commissioner of Central tax of the person undertaking packing of such goods that he is voluntarily foregoing his actionable claim or enforceable right on such brand name as defined in Explanation (ii)(a); and he has authorised the person [undertaking packing of such goods in unit containers bearing said brand name] to print on such unit containers in indelible ink, both in English and the local language, that in respect of such brand name he [the person owning the brand name] is voluntarily foregoing the actionable claim or enforceable right voluntarily on such brand name.