In the 23th GST council Meeting which is held at Guwahati, the largest city of Assam on 1oth day of November, the major GST changes takes place. Many decisions have taken regarding the ITC (Input Tax Credit) and some GST updates. During the Press Release, our Union Finance Minister Sh. Arun Jaitley and the Chief Finance and Revenue Secretary Sh. Hanshmukh Adhia disclosed the following information. This information is very important in the purview of GST.
During their addressing to the press they said that only about 50 items were left in the GST bracket of 28%. Earlier the goods count was 228. It means 178 goods move from 28% to 18%.
Recent GST Updates- Major items of 28 percent GST bracket
Only luxurious goods and Sin goods are now in 28% GST bracket. In this GST updates the luxurious goods like Air Conditioners, dish washing machines, washing machines, televisions, Digital cameras and video cameras recorders [other than CCTV], Monitors and projectors, refrigerators and freezers, vacuum cleaners, 2-wheeler and 4-wheeler, air crafts, cement, paints, perfumes etc are kept in 28% tax bracket. Also the sins goods like pan masala, beverages, cigars and cigarettes, tobacco products are now in 28% GST bracket.
Recent GST Updates- Major items of 18 percent GST bracket
The goods like coffee, custard powder, dental hygiene products, Chocolates and other food preparations containing cocoa, bubble gum and white chocolate, Waffles and wafers coated with chocolate or containing chocolate, Beauty or make-up preparations like creams including sunscreen or sun tan preparations; manicure or pedicure preparations(other than kajal, Kumkum, Bindi, Sindur, Alta), pre or after-shave, deodorants, sanitary ware, Polishes and creams for footwear, goggles, wrist watches/ pocket watches including all like stop watches some apparels like leather clothing, artificial fur, wigs, utensils like cookers, stoves, cutlery, detergent and washing power, razors and blades, Electrical items storage water heaters, Printers which perform two or more of the functions of printing, batteries, suit-cases, vanity-cases, sports, shopping and school bags, are the major among the products which have been brought down to 18% GST slab from 28%.
In this GST updates also 6 items were moved from 18% to 5% tax bracket, 13 items were moved from 18% tax bracket to 12% and the 6 items will be exempted from levy a GST, earlier the GST levied on these was 5%.
Recent GST Updates – Major change for the Restaurants
This GST updates brought good news for food lovers, since all the restaurants whether it’s fully Ac’s or not, will attract 5% GST without ITC (Input Tax Credit). The reason behind this is that the restaurants are not giving their ITC benefits to end – user. Food parcels (or takeaways) will also attract 5% GST without ITC. Also the restaurants which are in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC. But the restaurants which are having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC. Outdoor caterings like for party and others will continue to be at 18% with full ITC.
During the queries session with one reporter, who has been asked to Mr. Arun Jaitley why so much changes has been taking place after the launch of GST. You should prepare for that. In response Sh. Arun Jaitley told that it is the transition phase of GST and also a lot of IGST are pending so these GST updates are taking place for the betterment of a common people. Things are coming into consideration and changes have been taken place according to them. Also he added that GSTR-1 has to be filed till 31st December for the amount above Rs. 1.5 crores for the GST payer who’s GST is pending up to 31st October.