37th GST Council meeting in held on 20th September 2019 in Goa. This meeting was much awaited by many industries as they are expecting rate cuts. The major decisions taken in this meeting are
Changes related to GST returns
- Composition taxpayers are not required to file GSTR-9A for FY 2017-18 and FY 2018-19.
- Regular taxpayers with turnover of up to Rs. 2 crore are not required to file GSTR-9 for FY 2017-18 and FY 2018-19. However, they can file GSTR-9 if they want to file.
- A Committee of Officers to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.
- New return system now to be introduced from April, 2020 (earlier proposed from October, 2019)
- Restrictions on availment of input tax credit by the recipients in cases where details of outward supplies are not furnished by the suppliers in the statement under section 37 of the CGST Act, 2017 are proposed to be imposed.
GST Rate Changes (All rate changes are proposed to be made effective from 1st October 2019)
- GST on outdoor catering services shall be 5% without ITC. If outdoor catering is provided in premises where tariff for accommodation is Rs. 7,501 or above then GST rate will be 18% with ITC.
- Increase tax rate on caffeinated drinks from 18% to 28%. And also compensation cess of 12% will be leviable.
- Hotels with tariff of Rs 7,500 and above will be taxed at 18 per cent, whereas those with tariff in the range of Rs 1,000 to Rs. 7,500 will be taxed at 12 per cent. Those below Rs 1,000 will remain exempt from the tax regime as before.
- GST rate on slide fasteners has been reduced from 18% to 12%, marine fuel 18% to 5%, 12% to 5% on wet grinders consisting of stone as a grinder and 5% to nil on dried tamarind.
- 3% to 0.25% on cut and polished semi- precious stones
- 5% to 12% on goods, falling under chapter 86 of tariff like railway wagons, coaches, rolling stock (without refund of accumulated ITC).
- Plates and cups made of leaves, Cut and polished semi precious stones and Imports.
- A uniform GST rate of 12 percent on polypropylene and polyethylene, woven and non-woven, whether on not laminated, for packing. GST on railway wagons, and coaches increased to 12 percent, up from 5 percent.
- Aerated drinks manufacturers excluded from compensation scheme.
- The GST on job work for diamonds has been cut to 1.5 percent, up from 5 percent.
- The Council has exempted Platinum imported for re-export as jewellery from GST.
- GST on supply of machine job work has been cut to 12 percent, down from 18 percent. Supply of job work in relation to bus body building which would remain at 18%.
- Validity of conditional exemption of GST on export freight by air or sea by another year, i.e. till 30.09.2020.
- Passenger vehicles of engine capacity 1500 cc in case of diesel, 1200 cc in case of petrol and length not exceeding 4000mm designed for carrying up to 9 persons attract compensation cess of 1% for petrol and 3% for diesel vehicle. Council recommended same compensation cess rate for vehicles having these specifications (length and engine capacity) but designed for carrying more than 10 persons but upto 13 persons. (Presently these vehicles attract compensation cess at the rate of 15%)