Work is an integral part of our life and also a good source of happiness. That’s why I wish that your job bring you personal growth and career advancement, moral satisfaction, warm trustful relationships and wealth in the coming year. Happy New Year!

The following reduction in GST rates were proposed by the GST Council in the 31st Meeting held on 22nd December,2018:

A. 28% to 18%

• Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483
• Monitors and TVs of upto screen size of 32 inches
• Re-treaded or used pneumatic tyres of rubber;
• Power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium ion battery.
• Digital cameras and video camera recorders
• Video game consoles and other games and sports requisites falling under HS code 9504.

B. 28% to 5%

• Parts  and accessories for the carriages for disabled persons

II. GST rate reduction on other goods,-

A. 18% to 12%

• Cork roughly squared or debagged
• Articles of natural cork
• Agglomerated cork

B. 18% to 5%

Marble rubble

C. 12% to 5%

• Natural cork
• Walking Stick
• Fly ash Blocks

D. 12% to Nil:

• Music Books

E. 5% to Nil

• Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container
• Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

III. GST on solar power generating plant and other renewable energy plants

• GST rate of  5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.
• Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.
• To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.

Reduction in GST rates/exemptions on services:

• GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.
• GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
• Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
• Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services). (PIB)

GST Council in its 31st meeting, held on 22-12-2018, proposed relief for non-filers by waiving late fee for filing returns GSTR-3B, GSTR-1 and GSTR-4 for the months/quarters starting from July 2017 to September 2018. This will be major relief for those who are not filed the returns due to various reasons and not filed due the reason of paying fines.

The due dates for filing annual return and submission of reconciliation statement in Form GSTR-9, GSTR 9A and GSTR 9C furhter extended to 30th June, 2018.

Input tax credit related to financial year 2017-18 can be claimed till the due date of furnishing Form GSTR-3B for the month of March, 2019.

In addition to be changes, the GST council recommended reduction in GST rates of various products and services.

Other Major Recommendations

1. Single Cash ledger for each tax head – Will be implemented shortly
2. Single authority for disbursement of refunds – will be implemented shorlty
3. New return filing system will be introduced by 01-04-2019 and will be mandatory from 01-07-2019
4. Form GSTR-8 by e-commerce operators for the months October to December 2018 extended  till 31-01-2018.
5. All supporting documents for refund to be uploaded electronically. The same will be enabled in the common portal shortly.
6. E-way bill can’t be generated by those who had defaulted in filing returns for two quarters.

To see the decisions, please see the press release below:

MCA vide General Circular no. 10/2018 dated 29th October, 2018 gave relaxation of additional fees for filing Form MGT-7, AOC-4 etc. up-to 31st December, 2018. To see the circular, see below:

CBDT extends due date for filing income tax returns and audit report to 31-10-2018 without payment of late fees. Liability to pay interest under section 234A of Income Tax Act will remain.

May this Onam bring happiness and prosperity to all Keralites..