GST Council announces new year bonanza; slashes GST on 20+ items
Just before Christmas and the new year (2019), the government has given a huge bonanza to the industry & consumers - a reduction in GST rates of many commodities & services and relaxation in due dates.
During its 31st meeting held on December 22, 2018, the GST council slashed tax rates on more than 20 commodities and services, along with extending the due date for filing various GST returns, and claiming input tax credit.
New, easy return filing to be introduced on trial basis from April 1, 2019
Government has intended to bring in new, easier return filing system on a trial basis from April 1, 2019 and make it mandatory from July 1, 2019.
Due dates of GST returns extended
A huge relief to the taxpayers came in the form of relaxation in due date for filing GST returns. Annual Return GSTR-9 (for regular taxpayers), GSTR-9A (for composition taxpayers) and GSTR-9C (Reconciliation Statement) for FY 2017-18 can now be filed till June 30, 2019. Further, e-commerce operators deducting TDS can now submit the GSTR-8 monthly return for the period October 2018 to December 2018 by January 31, 2019.
Taxpayers who couldn’t claim input tax credit on goods and services received during FY 2017-18 can now claim it till April 20, 2019 (last date of filing GSTR-3B for March 2019).
Reduction in GST rates of Goods
Seven items have been taken out of the 28% GST bracket, leaving only a handful of items in the top tax rate bracket. Cement and 13 auto parts, which fetch huge revenue to the exchequer, will still be taxed at 28%.
GST rate reduced from 28 percent to 18 percent
- Monitors and TVs of size up to 32 inches,
- Digital cameras and video camera recorders,
- Pulleys, transmission shafts and cranks, gearboxes,
- Power banks of lithium-ion batteries,
- Video game consoles and other games and sports enquiries.
GST rate reduced from 28 percent to 5 percent
- Parts and accessories for carriages for disabled.
GST rate reduced from 18 percent to 12 percent
- Cork, roughly squared or debagged,
- Articles of natural cork,
- Agglomerated cork.
GST rate reduced from 18 percent to 5 percent
- Marble rubble.
GST rate reduced from 12 percent to 5 percent
- Natural Cork,
- Walking stick,
- Fly ash blocks.
GST rate reduced from 12 percent to NIL rate
- Music books.
GST rate reduced from 5 percent to NIL rate
- Vegetables, frozen, branded and put in a unit container,
- Vegetable provisionally preserved, but unsuitable in that state for immediate consumption.
Reduction in GST rates of Services
Movie tickets will become cheaper, as GST on movie tickets over INR 100, is reduced from 28 percent to 18 percent. On movie tickets up to INR 100, GST is reduced from 18 percent to 12 percent.
GST rate on third-party motor insurance is reduced from 18 percent to 12 percent, resulting in reduction of the overall premium amount.
Services provided by banks for basic savings bank deposit account holders under Jan Dhan Yojana will be exempted from GST.
Late Fees waived off; Interest norms relaxed
GST council waived off late fees for filing GST-1, GSTR-3B and GSTR-4 return from July 2017 till September 2018. Defaulters can now file pending GST returns without paying late fees till March 31, 2019.
Composition scheme to be introduced for service providers
Composition scheme that allows taxpayers to pay GST at a flat minimum rate will now be extended to service providers also. Presently, service providers (except restaurants) are not eligible for composition schemes.
Overall, the government has ensured that businesses will end 2018 on a high note with consumers also getting benefit of reduced tax rates in the form of cheaper goods & services.
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