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

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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.