23rd GST Council Meet Highlights: List of all Rules Rate Changes

The 23rd GST Council meet was held on November 10, 2017. The Council made some important decisions which will have far-reaching implications for businesses and consumers.

Here are the highlights of the meeting:

1. Composition Scheme Threshold Increased: The threshold for the composition scheme has been increased from Rs.75 lakhs to Rs.1 crore. This means that businesses with an annual turnover of up to Rs.1 crore can now opt for the composition scheme.

2. GST Rate Cut: The GST rate on several goods and services has been reduced. The rate reduction will provide relief to consumers and boost businesses.

The rate cuts are as follows:

(i) GST rate on restaurants reduced to 5% from 12%

(ii) GST rate on other unbranded food items reduced to 5% from 12%

(iii) GST rate on stationery items reduced to 18% from 28%

(iv) GST rate on job work for textile sector reduced to 5% from 18%

3. Return Filing Simplified: The Council has decided to simplify the return filing process. The GST return filing process will now be done in two stages. The first stage will involve uploading the invoice details and the second stage will involve filing the returns. The Council has also extended the due date for filing returns for the months of July, August and September 2017.

4. E-way Bill System Introduced: The Council has approved the introduction of the e-way bill system. The e-way bill system will be implemented from February 1, 2018. The system will ensure that goods are transported in a hassle-free manner across state borders.

5. Composition Scheme for Services Introduced: The Council has introduced a composition scheme for services. The composition scheme for services will have a tax rate of 5%. The annual turnover limit for the scheme will be Rs.50 lakhs.

6. Reverse Charge Mechanism Deferred: The Council has deferred the implementation of the reverse charge mechanism. The reverse charge mechanism was supposed to be implemented from October 1, 2017. The Council has now decided to defer the implementation of the reverse charge mechanism till March 31, 2018.

7. GST Rate on Used Vehicles Reduced: The GST rate on used vehicles has been reduced. The GST rate on used vehicles will now be 18% instead of 28%.

8. GST Rate on Diamond Job Work Reduced: The GST rate on diamond job work has been reduced to 0.25% from 5%.

9. GST Rate on Parts of Diesel Engine Reduced: The GST rate on parts of diesel engine has been reduced to 18% from 28%.

10. GST Rate on Cigarette Filter Rods Increased: The GST rate on cigarette filter rods has been increased to 18% from 12%.

11. GST Rate on Biodiesel Reduced: The GST rate on biodiesel has been reduced to 12% from 18%.

12. GST Rate on Fly Ash Blocks Reduced: The GST rate on fly ash blocks has been reduced to 5% from 12%.

13. GST Rate on Man Made Yarn Reduced: The GST rate on man made yarn has been reduced to 12% from 18%.

14. GST Rate on Zari Reduced: The GST rate on zari has been reduced to 5% from 12%.

15. GST Rate on Printing Machinery Reduced: The GST rate on printing machinery has been reduced to 18% from 28%.

16. GST Rate on Drip Irrigation Systems Reduced: The GST rate on drip irrigation systems has been reduced to 12% from 18%.

17. GST Rate on Pumping Systems for Sprinklers Reduced: The GST rate on pumping systems for sprinklers has been reduced to 12% from 18%.

18. GST Rate on Mango Pickle Reduced: The GST rate on mango pickle has been reduced to 12% from 18%.

19. GST Rate on Khakra Reduced: The GST rate on khakra has been reduced to 5% from 12%.

20. GST Rate on Marble and Granite Slabs Reduced: The GST rate on marble and granite slabs has been reduced to 18% from 28%.

21. GST Rate on Job Work for Handicraft Items Reduced: The GST rate on job work for handicraft items has been reduced to 5% from 18%.

22. GST Rate on Corduroy Reduced: The GST rate on corduroy has been reduced to 5% from 12%.

23. GST Rate on Rubber Tubes and Flaps Reduced: The GST rate on rubber tubes and flaps has been reduced to 12% from 28%.

The 23rd GST Council meet was held on November 10, 2017. The Council made some important decisions which will have far-reaching implications for businesses and consumers. Here are the highlights of the meeting: Composition Scheme Threshold Increased, GST Rate Cut, Return Filing Simplified, E-way Bill System Introduced, Composition Scheme for Services Introduced, Reverse Charge Mechanism Deferred, GST Rate on Used Vehicles Reduced, GST Rate on Diamond Job Work Reduced, GST Rate on Parts of Diesel Engine Reduced, GST Rate on Cigarette Filter Rods Increased, GST Rate on Biodiesel Reduced, GST Rate on Fly Ash Blocks Reduced, GST Rate on Man Made Yarn Reduced, GST Rate on Zari Reduced, GST Rate on Printing Machinery Reduced, GST Rate on Drip Irrigation Systems Reduced, GST Rate on Pumping Systems for Sprinklers Reduced, GST Rate on Mango Pickle Reduced, GST Rate on Khakra Reduced, GST Rate on Marble and Granite Slabs Reduced, GST Rate on Job Work for Handicraft Items Reduced, GST Rate on Corduroy Reduced, GST Rate on Rubber Tubes and Flaps Reduced.BusinessFinance