Key take-outs from the 17th Meeting of GST Council held on 18th July

Key take-outs from the 17th Meeting of GST Council held on 18th July

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1. GST Council categorically decided to implement GST from 1st July. There will be a special launch of GST in Delhi on the mid-night of 30th June and 1st July

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2. Relaxation in Return filing time-line for first 2 months:

A summary return form in GSTR-3B will required to be filed on self-declaration basis for first 2 month i.e. July and August by 20th day of next month. I.e. for the month of July, a summary return needs to be filed by 20th august after paying appropriate taxes, and for the month of August, the same needs to filed by 20th September

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3. GSTR-1 with invoice level details needs to be filed for the month of July by 5th September, and for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter

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4. Reduced tax rate for hotels with tariff between 5000-7500:

Reduced tax rate of 18% will apply on the hotels with tariff between Rs. 5000 to Rs. 7500. Restaurants in these hotels will also be taxable at 18%.

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5. Tax rate on Lotteries

State-run lotteries will be taxed at 12%

Private lotteries will be taxed at 18

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6. Negative List of Composition Scheme

Only 3 products have been added in negative list of Composition Scheme, which means for following 3 products composition scheme will not be available.

• Ice cream

• Pan masala

• Tobacco

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7. E-way bill will be deferred and will be implemented later on once the rules for same will finalized. Till that time, an alternate e-way bill will be introduced to allow the state with their current system.

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8. IGST rate of 5% on Ship with full ITC will be applicable.

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9. GST Council also approved anti-profiteering rule.

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10. New Registration in GST will be commenced from 25th June.

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Regards

ACA SOURAV BAGARIA