25th GST Council Meeting- 10 things to know
The GST council has made major changes in its 25th meeting. The Council has recommended many relief measures regarding GST rates on goods and services covering many sectors and commodities. The Council has also recommended issuance of certain clarifications on issues relating to GST rates and taxability of certain goods and services. The GST Council has also recommended changes in GST or IGST rates on certain goods and issued clarifications in respect of GST rates on certain goods. All such changes would be applicable prospectively from January 25, 2018. Key takeaways from 25th GST Council meeting are as follows:
||GST Council has recommended that the taxable persons who have obtained voluntary registration should be able to apply for cancellation of registration even before the expiry of one year from the effective date of registration.
||The Council has decided that the late fee payable by any registered person for failure to furnish FORM GSTR-1 (supply details), FORM GSTR-5 (Non-resident taxable person) or FORM GSTR-5A (OIDAR) to be reduced to Rs. 50 per day and shall be Rs. 20 per day for NIL return filers.
||It has been decided that the supply of services by way of providing information under RTI Act, 2005 should be exempted from GST.
||The all-powerful Council has also decided to reduce GST rate on tailoring service from 18% to 5%.
||It has been agreed that the services by way of transportation of goods from India to a place outside India by air should not be taxable under GST.
||The Council also agreed to enhance the exemption limit to Rs. 7500 in respect of services provided by Resident Welfare Associations (unincorporated or non-profit entity) to their members against their individual contribution. Earlier limit was fixed at Rs. 5000.
||It has also been decided that no GST will be levied on the subscription of online educational journals or periodicals by educational institutions who confer degrees recognized by any law.
||The Council has also recommended that all services provided by way of construction, erection, Commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of building used for providing mid day meal scheme by an entity registered under section 12AA of the IT Act should be taxable at the rate of 12%.
||The Council also clarified that elephant or camel joy rides are not classified as transportation services and would attract GST at the rate of 18% with threshold exemption to small services providers.
||The Council also agreed that e-way bill will be applicable on inter-State movement with effect from 01.02.2018 and for intra-State movement with effect from a date which will announced separately by each State but not later than 01.06.2018.