Decisions taken on Services at 20th GST Council Meeting: With the biggest Indian economic reform already in place for almost 2 months, we can now look for the positive effects for the trade and businesses at large. GST is expected to promote business and development by making the taxation structure easy along with ensuring ease of doing business and rationalization in tax rates.
The GST Council at its 20th GST Council Meeting took decisions regarding the change in rates on various services whereby: –
- Rate on Job work services in respect of the textiles and textile products have been reduced to 5%.
- Rate on services by way of printing of newspapers, books, journal and periodicals (if only content provided by publisher and all input of paper etc belongs to printer) will be 12%.
- Rate on services by way of printing of newspapers, books, journal and periodicals (if input used belongs to publisher and not printer) will be 5%.
- Rate on works contract services provided to Government, local authority or governmental authority and in respect of post-harvest storage infrastructure for agricultural produce, mechanized food grain handling system will be 12% with full ITC.
- Rate on margin/commission payable to Fair Price Shop Dealers by Central/ State Governments reduced to Nil.
- Rate on Admission to planetarium reduced to 18% with full ITC.
- An option of 12% GST on Rent-a- Cab service will be allowed along with full ITC. Otherwise, 5% GST with no ITC will also continue.
- An option of 12% GST is allowed on Goods transport Agency Services (GTA) with full ITC under forward charge. Otherwise, 5% GST with no ITC will also continue. However, the GTA has to give an option at the beginning of financial year.
- In case of small house-keeping service providers (plumbers/ carpenters) providing services through Electronic Commerce Operators (ECO), liability to pay GST placed on ECO.
- Partnership firm or a firm includes LLP have been notified for the purposes of levy (including exemption therefrom) of GST on legal services.
- It was clarified that legal services (including representational services) provided by an individual advocate or a senior advocate or a firm of advocates (including LLP) provided to a business entity in taxable territory are covered under reverse charge mechanism.
- Goods required by FIFA and Services provided by and to FIFA and its subsidiaries in connection with FIFA U- 17 World Cup to be hosted in India in 2017 shall be exempted from GST.
- New crop insurance schemes Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced from Kharif 2016- 17 in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS), and Restructured Weather Based Crop Insurance Scheme (RWCIS) introduced in place of Weather Based Crop Insurance Schemes, shall be extended exemption from GST.
- GST Registration
- GST Definition, Objective
- When will GST be applicable
- GST Forms
- GST Rates
- GST India
- GST Login
- GST Overview 2017
- GST Bill 2017