25 Dec 2018Posted By: Mudit Handa


Which Services have Become Cheaper after 31st GST Council Meeting?

The 31st GST Council meeting that took place on 22nd December 2018 at the Vigyan Bhawan, New Delhi had sought to rationalize the Goods and Services Tax tariff for the taxpayers and merchants who have GST registration. The council introduced crucial reforms as regards GST rate reduction on various goods & services.

Undoubtedly, the GST council has up to great extent met the expectations with regard to the GST simplification and rationalization. For instance, 6 items have been already removed from the uppermost 28% GST slab. Tariff on such commodities has been slashed from 28% to 18%.

GST Council in the 31st meeting took noteworthy decisions in relating to the reduction in GST rates on various services, and eligibility of Input Tax Credit. Besides, several services have been exempted from GST. These rate cuts will obviously benefit the taxpayers and traders having GST registration.

The changes in GST rates on services on services have been explained below in a very simple manner for easy understanding.

 

#1. Where has GST been reduced?

GST rates have been reduced on services as listed below-

  • On Movie tickets costing above ₹100 GST shall be reduced from 28% to 18% and on movie tickets up to ₹100 from 18% to 12%.
  • GST on 3rd party insurance premium of commercial vehicles (goods carrier) shall be reduced from 18% to 12%.

 

#2. Which services are exempted from GST?

The following services shall be exempted from GST as per the decisions of 31st GST council meeting:

  • Services of commercial banks to customers having Basic Saving Bank Deposit (BSBD) accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
  • Services of rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 in clinics, educational institutions, and rehabilitation centres run by Central or State Government or Union Territories or the entities registered under section 12AA of Income Tax Act 1961.
  • Services by a Goods Transport Agency (GTA) to Government departments or local authorities which have taken GST registration only as tax deductors u/s 51 of CGST Act 2017. These shall be exempted from GST under Reverse Charge too.
  • Services provided by Central or State Government to PSUs by way of loans taken by them from financial institutions.

 

#3. Which services have witnessed GST rationalisation?

Air travel via non-scheduled or charter planes, for religious pilgrimage, provided by the Government of India under various bilateral ties shall attract the same rate of GST as that of flights in Economy class, i.e. 5% with input credit.

Also read the  for further details.

 

If you need any help on GST registration procedure, feel free to contact our business advisor at 8881-069-069.

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Comments


Posted By Rajesh kumar
Posted Date 2018-12-27 10:58:58

Rajesh


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