GST Updates June 2017, Latest GST Updates till 22nd June 2017

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GST Updates June 2017, Latest GST Updates till 22nd June 2017

GST Updates June 2017, Latest GST Updates till 22nd June 2017 – GST Act 2017. check latest GST news related to goods and service tax act 2017. The Lok Sabha on 29th March 2017 and the Rajya Sabha on 6th April 2017 cleared four crucial GST Bills i.e. CGST, IGST, UTGST and Compensation Cess Bill paving the way for early rollout of GST.

GST Updates upto June 2017

GST scheduled to be roll-out by 1st July 2017

The Government of India has emphasised that Goods and Services Tax (GST) is scheduled to roll-out on 1st July,.2017. The Central Board of Excise and Customs (CBEC) in coordination with the State Governments have increased their outreach programmes with regard to Goods and Services Tax (GST) so as to reach the last trader. The GST formations are being notified shortly. The window for migration to GSTN has re-opened to assist the remaining taxpayers. The preparations are in full swing for a smooth implementation of the landmark tax reform from 1st July, 2017.

List of all sections of UTGST Act 2017

16th Meeting of GST Council

The 16th meeting of GST Council was held on 11th June 2017 wherein after considering the recommendations from trade and industry the gst rates of 66 items were reduced. The new reductions were based on two major principles, maintaining equivalence and the change in the utilization behaviour. Further, the turnover limit for Composition levy for CGST and SGST purposes was increased from Rs. 50 lakh to Rs. 75 lakh in respect of all eligible registered persons i.e. Manufacturer, Trading & Restaurants. Final approval was provided to Accounts and Records Rules. The next meeting of GST Council is scheduled to be held on 18th June 2017 to take up the pending matters.

SGST Act Passed by 30 States

The steadily growing number of States passing the SGST Act shows that the even States are now keen to bring this unified taxation system into effect from 1st July, 2017. Till date, 30 states have passed the SGST Act wherein Nagaland & Himachal Pradesh are latest to join the league. click here to check list of all states who passed State GST Act

15th Meeting of GST Council

The GST Council met for the 15th time on 3rd June 2017 under the chairmanship of hon’ble Finance Minister Shri Arun Jaitley and decided upon the rates of for almost all the remaining items, such as precious metals (gold and silver), diamonds, biscuits, textiles, and footwear.Final approval was provided to Return Rules and Transition Rules. For transitional credit of goods where duty payment document is missing and the tax rate exceeds 18%, traders and retailers can claim 60% credit against the CGST or SGST payable. For tax rate below 18%, it will be retained at 40% only.

A new Twitter Handle @ask GST

The Department of Revenue, Ministry of Finance, Government of India has opened a new Twitter Handle @askGST_GoI to invite queries from all taxpayers on GST. All taxpayers and other stakeholders are welcome to direct their queries related to GST on the said twitter handle for early resolution and clarification. It may be noted that it is for educational purposes only.

Meeting of GSPs held by GSTN

Goods & Services Tax Network (GSTN) held a Review Meeting with GST Suvidha Providers(GSPs) on 9th June 2017 to Assess Readiness for GST roll-out from 01st July 2017.GSTN also published and explained the method and manner in which the GSPs would be able to integrate with the GST System to be able to submit all the return forms on behalf of their clients and tax payers. GSPs were advised to continue to visit the GSP ecosystem webpage on the GSTN website (www.gstn.org/ecosystem) for all information, latest updates and guidelines.

Taxation of Services under Reverse Charge

GST Council has provided list of 12 services on which tax would be liable under Reverse Charge which include services like Services provided by GTA, Legal services to business entities, Radio taxi or Passenger Transport Services provided through electronic commerce operator, services by a director of a company or a body corporate, import of services, etc. As of now, none of the services are covered under partial reverse charge

Section 24 of UTGST

GST Rates on Services & Goods

The GST Council in its 14th meeting held on 18th may, 2017 has broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on 1206 items. The decision regarding rate of tax on remaining 6 items viz. Gold, Bidis, Textile, Footwear, Agricultural implements and Packaged/Branded food items would be taken up in the upcoming meeting of GST Council.

On 19th May, 2017 GST council also finalized four tax rates for services in line with goods at nil rate, 5%, 12%, 18% and 28% for services including telecom, insurance, hotels and restaurants. Health care and education would remain exempted under the GST. Broadly all services presently covered under Negative List and Mega Exemption Notification are kept under exemption.

  1. Seven GST Rules finalized & approved while legal committee is looking(vetting)remaining 2 Rules relating to Return & Transition. Click here to download all GST Rules 2017
  2. TGST Council at its 14th meeting approved 7 GST Rules & formats viz, Composition, Valuation, Input Tax Credit, Invoice Debit & Credit Notes, Payment, Refund, Registration. The Council has broadly approved the GST rates for goods and services at nil rate, 5%, 12%, 18% and 28%. Further approved were the rates of GST Compensation Cess to be levied on certain goods.
  3. GST Rates are finalised for 1211 items
  4. 81% of the items will fall up to 18% rate slabs. Means 19% of the goods to be taxed @28%. The standard slab of 12% & 18% would be applicable to 60% items.
  5. Common man items have gone into 12% & 18% slab.
  6. Indians sweets or mithai will fall under 5%
  7. Coal to be taxed at 5% against 11.69% currently.
  8. All raw food items, including food grains to be exempt
  9. Processed food of daily needs to be in the 5% slab
  10. Sugar, Tea, Coffee (except Instant) and edible oil to fall under 5% slab, while part of exempt list under GST.
  11. Tooth paste, hair oil will be taxed at 18% against 28% currently.
  12. In a big boost to industry, Council has set the rate for capital good, industrial intermediate items at 18%
  13. 4 rates for services 18% and 28%;
  14. 5% rate mostly for transportation services;
  15. Most of current service tax exemptions grandfathered and may continue under GST;
  16. Healthcare & Education shall continue to be exempt;
  17. Rates for Restaurant services will vary as per tariffs charged and facilities provided, ranging from 12-18%;
  18. Gambling and Cinema services to fall under 28% slab, as entertainment tax merged with service tax under GST;
  19. Works contract taxable at 12% with full Input Tax Credit;

Council to meet next on June 3rd to deliberate on rates for gold & precious metals .

Other GST Updates

Receipt of Presidential assent on GST Act

A latest development with regards to implementation of GST – India’s most awaited largest economic reform, is in receipt of Presidential assent to four key legislations viz. The Central GST Act, 2017, The Integrated GST Act, 2017, The GST (Compensation to States) Act, 2017, and The Union Territory GST Act, 2017, on 12th April 2017 paving the way for the earliest roll out of GST. These bills were passed by Rajya Sabha & Lok Sabha on 6th April 2017 & 29th March 2017 respectively.

GST Draft Rules

The Government recently released 14 draft GST Rules including 5 revised draft rules on Invoice, Payment, Refund, Registration and Return in the public domain, for which suggestions/representations were invited by the Government. The Indirect Taxes Committee has submitted its suggestions to the Government on 5th May, 2017.

GST Enrolment

The Government declared that Phase-1 of GST was closed on 30th April, 2017 whereby 60.5 lakh taxpayers enrolled out of 84 lakh on the GST Portal (gst.gov.in) between 8th November, 2016 and 30th April 2017. The enrolment process has closed with effect from 1st May, 2017. Data of all those who have signed the enrolment form will be migrated to the new GST System

The GST Registration window will reopen for 15 days from 1st June, 2017 to provide another opportunity to the taxpayers who could not enrol themselves as well as for those who enrolled but did not sign the enrolment form.

GST Rules

GST council at its 13th Meeting held on 31st March 2017 approved five amended rules for the Goods and Services Tax regime rules namely invoice, payment, refund registration, return and gave “tentative” nod to the remaining four rules viz. Composition, Valuation, Transition, ITC for comments and suggestion by various stakeholders.

Next (14th) GST Council Meeting is scheduled to be held on 18th-19th May 2017 at Srinagar

GST in J&K

J&K’s special status under the Constitution mandates that the state assembly approve GST Bills passed by the Lok Sabha and as well as its own legislature for SGST Law. The process of drawing J&K own rules to implement GST will start from May, after the final set of guidelines would be approved by the GST Council.

Rates under GST

The Central GST (CGST) law has pegged the peak rate at 20% and a similar rate has been prescribed in the State GST (SGST) law, which takes the max rate to 40% which will come into force only in financial exigencies. Similarly, IGST would be levied at 40% at its peak rate.

GST Council in its meeting decided 4 tier structure of rates 5%, 12%, 18% and 28% (with cesses) in addition to zero rated and exempted goods or services.

Appointment of New CBEC Chairperson

Ms. Vanaja N. Sharna has been appointed as the Chairperson, Central Board of Excise and Custom (CBEC) succeeding Shri Najib Shah, then Chairman, CBEC.

FAQ’s on GST

Central Board of Excise and Customs (CBEC) has released Frequently Asked Questions (FAQs) on GST in various regional languages including Kannada, Malayalam, Punjabi, Telegu, Marathi and Assamese to disseminate the knowledge in their local language to various stakeholders.

FAQ’s on GST Migration

CBEC has released 19 FAQ’s on GST Migration. Answers in the FAQ’s have been explained with the help of examples in a very simplified manner. The same are available on website of CBEC i.e. www.cbec.gov.in. CBEC helpdesk may also be contacted at helpdesk@gst.gov.in or call at 0124- 4688999 for queries in relation to migration.

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