On Sunday the GST council had a meeting to review the request to lower GST rates on certain items. Out of 133 items which were requested for revision, 66 got GST rate cuts. Items like manufactured ships, telephone bills, sanitary napkins and hybrid cars were also represented in the meeting for GST rate cuts. Finance Minister Arun Jaitley said that earlier GST rates were decided to maintain existing taxes where as there has been a consideration in the rates due to change in the economy and consumer preferences. The council had already decided rates for almost 1211 items out of which 500 items had received a request for revision in GST rates. The below items got GST rate cuts as per the request.
|Pickles, Ketchup, Sauces, Preserves||12%||18%|
While the movie tickets have got revised GST rates, tickets below Rs 100 would also levy 18% GST rate and tickets above Rs 100 would levy 28% GST rate. GST tax rate for job work in textile, gems, and jewelry has been reduced to 5% from 18%; GST rate for gold and silver has been fixed to 3%.
Packaged food category will attract 18% GST rate and sandwich topping will have 12% GST.
Agarbattis that had 12% GST rate now will attract 5% GST. School bags rate has been brought to 18% from 28%. Exercise books will have 12% instead of 18% GST. Fly ash bricks and blocks would incur 12% GST rate.
Also Read: Benefits of GST
Composition scheme will have change in threshold of GST rate. Small enterprises composition scheme has also been reworked in the meeting, in which the turnover slab has been revised from 50 lakhs to 75 lakhs. Now small traders with predefined turnover can top for composition scheme and pay 1% tax while manufacturers and restaurants are allowed to pay 2% and 5% tax respectively.
What is composition scheme?
Also Read: List of GST rates
Composition scheme is an extension to the current scheme under VAT law. While opting for this, the trader will file for summarized returns quarterly. Any business dealing only with goods and restaurants sector can opt for composition scheme. Service providers cannot opt for this scheme.
Registered taxpayers need not maintain detailed records as in the case of normal taxpayer. A composition taxpayer is not allowed to avail input tax credit of GST paid to their supplier. Only one return i.e. GSTR-4 is required to be filed quarterly and an annual return in FORM GSTR-9A to be filled under composition scheme. A dealer whose annual turnover does not exceed 50 Lakhs can opt for composition scheme. These are some of the common features of composition scheme which will help small enterprises reduce the burden of taxes.
The next GST meeting is going to be held on June 18 in the capital to finalise the remaining issues that include taxation of lotteries and eway bills, that are directly related to transport of goods across state lines.