11th November 2017
23rd GST council meeting brought a good news for many. In the meeting held in Guwahati on Friday, the GST rate on multiple products like detergents, chocolates, coffee was cut down. The number of goods in the highest tax bracket of 28% has been reduced from 228 to just 50. So now only the luxury and the sin goods are kept under the tax bracket of 28% while the goods of daily use are put into the tax bracket of 18%.
Further eating out has also become cheaper with the standard rate of 5% charged on every restaurant. Earlier multiple rates were charged on restaurants based on whether they are air-conditioned or not.
Now under the Tax bracket of 28 percent, only goods like pan masala, aerated water and beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, ACs, dish washing machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yachts will be included.
Moreover, certain other relaxations in respect of filing returns are also granted to the taxpayers. At the GST Council meeting, it is decided that taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 on quarterly basis, while taxpayers with a turnover of above Rs. 1.5 crore need to file GSTR-1 on monthly basis. The penalty on the taxpayers who are unable to file their return in Form GSTR-3B within the specified time has also been waived off.
In addition this, it has now been decided that exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.
“This is welcoming step taken to reduce to reduce GST on AC restaurants from 18% to 5%.” Said, the Shyam Bhartia, Chairman and Hari Bhartia, Co-chairman Jubilant Foodworks. The industry is appreciating the various others decisions taken by the Government of India.
2017 © Monetic Corp Consultants Private Limited - U74999DL2013PTC261819
Download GST E-book, An introductory guide for Goods and Service Tax by Registrationwala.
Like every GST liable business, you'll also need a GST software. Registrationwala has come up with a return preparing and filing software GST Tool.
To schedule a online demo, submit your details.