Small cars NOW affordable, GST rated over 30 items

Important decisions were taken at the 21st meeting of the GST Council headed by Union Finance Minister Arun Jaitley in Hyderabad.


After the decisions taken in the meeting, people of middle income group and low income group will benefit.

On the one hand, with the middle class as well as luxury and sports utility vehicles (SUV) cars will become expensive after the decision.

On the other hand, small and hybrid cars have been exempted from this increase. Which will make these cars cheaper

Along with sun-light plastic raincoat rubber band broom Italy / Dosa Batter to daily use in kitchen utensils such as gas lighter

The decision to reduce the GST rate on 30 items was also taken in this meeting.

HOW TO CLASSIFY THE GOODS /SERVICES UNDER GST REGIME

Q How will the goods and services be classified under GST regime? 


Ans. HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2 digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4 digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices. Services will be classified as per the Services Accounting Code (SAC)

The right of the CGST/SGST officer

Q Can a CGST/SGST officer access business premises under any other circumstances? 

Ans. Yes. Access can also be obtained in terms of Section 64 of MGL. This provision of law is meant to allow an audit party of CGST/SGST or C&AG or a cost accountant or chartered accountant nominated under section 50 of CGST/SGST Act, access to any business premises without issuance of a search warrant for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue. 

However, a written authorization is to be issued by an officer of the rank of Additional/Joint Commissioner of CGST or SGST. This provision facilitates access to a business premise which is not registered by a taxable person as a principal or additional place of business but has books of accounts, documents, computers etc. which are required for audit or verification of accounts of a taxable person.

HOW MUCH TIME TAKES THE APPROVAL OF GST REGISTRATION ON APPLIED ON LINE

Q What will be the time limit for the decision on the online application?

 Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall approve the application and communicate the approval to the common portal within three common working days. The portal will then automatically 40 41 generate the Registration Certificate. In case no deficiency is communicated to the applicant by both the tax authorities within three common working days, the registration shall be deemed to have been granted [section 19(9) of MGL] and the portal will automatically generate the Registration Certificate

SOLUTIONS FOR DISPUTES OF GST REGIME

Q How are the disputes going to be resolved under the GST regime?

 Ans. The Constitution (one hundred and first amendment) Act, 2016 provides that the Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute- 16 (a) between the Government of India and one or more States; or (b) between the Government of India and any State or States on one side and one or more other Sates on the other side; or (c) between two or more States, arising out of the recommendations of the Council or implementation thereof

EXPORTERS QUARRIES FOR ITC IN GST REGIME

Q 20. Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. Will this system continue in GST? 

Ans. Under the GST regime exports will be zero rated which means that the export goods would not suffer any actual tax liability although inputs for such exports would be tax paid. Under GST, refund will be allowable on the accumulated inputs as well as on exported finished goods.

A list of goods that are exempted from GST

 Animal feed Aquatic feed Betel leaves Bread Butter milk Children’s’ picture, drawing or colouring books Coconuts Contraceptives (Condoms) Curd Earthen pot and clay lamps Educational services Eggs Fire wood Fish Fresh fruits Fresh milk Fresh vegetables Gandhi topi Hand operated agriculture equipments Hearing aids Human blood Human hair Indian national flag Indigenous handmade musical instruments Jaggery Judicial, Nonjudicial stamp papers, Court fee stamps Khadi yarn Kumkum, Bindi, Sindur Lassi Live animals Live trees and plants Medical services Municipal waste, sewage sludge, clinical waste Non-alcoholic Toddy, Neera Oraganic manure Pappad Plastic bangles poultry feed & cattle feed Prasad (sacred food) Printed books, including Braille books and newspaper, periodicals & journals Puffed rice (muri) Puja samagri Raw jute Raw silk Raw wool Salt Semen Slates, Slate pencils and chalk sticks Tender coconut water Unbranded atta (flour) and maida Unbranded besan (gram flour) Unbranded natural honey Unpacked foodgrains (Cereals, pulses) Unpacked paneer Water (other than aerated, mineral, purified) Wood charcoal