All Restaurants To Be Taxed At 5% GST, Rates On Over 200 Items Cut
Rates on a host of products was lowered by the Goods and Services Tax Council.
The Big Decisions Of The 23rd GST Council Meeting
- GST Council cuts rates of 211 items spread across all tax brackets.
- All standalone restaurants will face 5 percent GST but won’t get input tax credits.
- Government will pass an amendment to increase the threshold limit of the composition scheme to up to Rs 2 crore.
- Once that amendment is passed, the Council will hike the threshold to Rs 1.5 crore.
- GST Council extends deadlines for filing GST returns, simplifies filing process further.
HUL, Mondelez Say They Will Pass On Lower Rates To Consumers
It is a welcome step which will benefit the consumers. HUL will be delighted to pass on the net benefits at the corporate level to the consumers.HUL Spokesperson
We have always believed in keeping the interest of our consumers in mind and will pass on the benefits to them.Mondelez India Spokesperson
GST Council Cuts Rates On Over 200 Items
From 28% to 18%
- Electrical items like wire, cables, insulated conductors, pugs, switches, sockets
- Electrical board panels, consoles
- Particle fibre board, ply wood, wood, wooden frames
- Furniture, mattress, bedding
- Trunk, suitcase, vanity cases, brief cases
- Detergents, washing and cleaning preparations
- Liquid or cream for washing theskin
- Shampoos, hair creams, hair dyes, Henna power/paste
- Pre shave, shaving or after shaving preparations
- Perfumes, toilet waters
- Beauty or make-up preparations
- Fans, pumps, compressors
- Lamp and lightings
- Primary cells and primary batteries
- Sanitary ware and parts
- Articles of plastic, floor covering, baths, shower, sinks
- Slabs of marbles and granite
- Goods of marble or granite such as tiles
- Ceramic tiles of all kinds
- Vacuum flasks, lighters
- Wrist watches, clocks, watch movement, watch cases and parts
- Apparel and clothing accessories of leather, guts, furskin, artificial fur etc...
- Razor and razor blades
- Multi-functional printers and cartridges
- Office or desk equipment
- Door, windows or frames of aluminium
- Articles of plaster such as board, sheet
- Articles of cement or concrete or stone
- Articles of mica or asphalt
There are another 89 items on this list which will be updated shortly.
From 18% to 12%
- Condensed milk
- Refined sugar and sugar cubes
- Pasta
- Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning
- Diabetic food
- Medicinal grade oxygen
- Printing ink
- Hand bags and shopping bags bags of jute and cotton
- Hats (Knitted or crocheted)
- Parts of agricultural, horticultural, forestry, harvestings or threshing machinery
- Specified parts of sewing machine
- Spectacle frames
- Furniture wholly made of bamboo or cane
From 18% to 5%
- Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
- Flour of potato put up in unit container bearing a brand name
- Chutney powder
- Fly ash
- Sulphur recovered in refining of crude
- Fly ash aggregate with 90% or more fly ash content
From 12% to 5%
- Dessicated coconut
- Narrow woven fabric
- Idli, dosa batter
- Finished leather, chamois and composition leather
- Coir cordage and ropes, Jute twine, coir products
- Fishing net and fishing hooks
- Worn clothing
- Fly ash brick
From 5% to Nil
- Guar meal
- Hop cone
- Certain dried vegetables, such as sweet potatoes, maniac
- Fish frozen or dried
- Unworked coconut shell
- Khandsari sugar
Government To Bring Amendment To Hike Threshold For GST Composition Scheme
The finance minister today said the government will pass an amendment to increase the threshold limit of the composition scheme to up to Rs 2 crore. On an immediate basis, the Council will hike the threshold to Rs 1.5 crore once the amendment is passed, the finance secretary said.
The composition scheme allows small businesses to pay taxes at a lower rate without getting any input tax credits.
A uniform tax rate of 1 percent will apply on all traders and manufacturers. For restaurants, the rate remains unchanged at 1 percent. The Council expects most restaurants to opt for the 5 percent rate that will now apply to them instead of the 1 percent under the composition scheme, the finance secretary added.
Besides, the tax rate for composition dealers will now be applied to the taxable turnover, and not the total turnover, which was the case earlier.
GST Returns Filing Simplified Further
Filing of returns for GSTR-3B will continue till March, Finance Secretary Hasmukh Adhia said.
For small taxpayers, or people with no liability, the process will be simplified.
- In current year, only filing of GSTR-1 will be done
- All taxpayers with turnover of below Rs 1.5 crore, will file retun as per this timetable:
- Pending invoces for GSTR-1 will be filed by Dec 31
- For Oct-Dec, all invoices need to be filed by Feb 15
- Invoices for Jan-March must be filed by April 30, 2018
The government has found that nearly 30-40 percent filers had no returns to be filed, Adhia added.
For businesses with turnover above Rs 1.5 crore, the deadlines are as follows:
- GSTR-1 for July-Oct should be filed before Dec. 31
- Such taxpayers will file GSTR-1 monthly after 40 days. For example, the returns for November will have to be filed by Dec. 10, returns for Dec. will have to be filed by Jan. 10 and so on.
For taxpayers under the composition scheme, the deadline for filing GSTR-4 has been postponed to Dec. 24 from Oct. 18. Such taxpayers have to file returns quarterly, the GST Council had said in its previous meeting. Currently there are about 15 lakh taxpayers under this scheme.
Late Filing Penalty
- In cases where there is no transaction to be reported, the fine for late filing will be reduced to Rs 20 per day from Rs 200 per day.
- For others, the penalty will be reduced to Rs 50 per day from Rs 200 per day.
