22nd meeting of the Good and Services Tax (GST) Council was held on October 6, 2017 in New Delhi, under the chairmanship of Finance Minister Arun Jaitley. The council reduced GST rates on specific items and also eased the compliance requirement for Small and Medium Businesses.
Government reduces GST rates on 27 items, gives relief to small and medium businesses
During 22nd meeting of the GST Council, decision was taken to lower tax rates on 27 products and certain services.
- Products for which GST has been lowered and brought under 5% slab include unbranded namkeen, unbranded ayurvedic medicines, hand-made yarn, khakra chapati, waste obtained from rubber, plastic and paper.
- In services segment, job works like zari work, imitation jewellery and printing items have also been brought under the 5% slab.
- GST council has also asked a panel of state ministers to examine if the 18% GST on air-conditioned restaurants could be lowered or not.
Threshold for composition scheme raised to Rs 1 crore from 75 lakh
- At the 22nd Meeting of GST Council, decision was taken to raise the eligibility threshold for ‘composition scheme’ to Rs. 1 crore of annual sales from Rs.75 lakh earlier.
- Due to this move, more businesses can now avail the benefit of ‘composition scheme’ which permits liberal quarterly tax return filing and payment scheme.
- Moreover, under ‘composition scheme’ a marginal flat rate of tax is levied.
PAN card not required for jewellery purchase of above Rs 50,000
On October 6, 2017, post 22nd meeting of GST Council, Government announced to roll back August 2017 notification under which PAN card was mandatory on the purchase of jewellery for over Rs 50,000.
- The August 2017 notification has been rolled back by removing gems and jewellery dealers from the purview of the reporting requirement under the Prevention of Money Laundering Act (PMLA).
- Government decided to withdraw the notification, as it received representation from associations in gems and jewellery sector against the August 2017 notification.
Quick Facts about Goods and Services Tax (GST):
GST is a destination-based, single indirect tax that is levied on consumption of goods or use of services across India.
- It was rolled out in India from July 1, 2017.
- GST replaced 16 levies (7 central taxes and 9 state taxes), consequentially creating India as one market with one tax rate.
- Goods and Services Tax (GST) Council headed by Union Finance MinisterArun Jaitley and comprising representatives of all states have finalised four tax brackets under GST viz. 5%, 12%, 18% and 28%.