The 43rd meeting of the GST Council was mainly aimed at offering relief to the taxpayers and patients suffering from Coronavirus Pandemic. The meeting of the GST Council in Delhi took place on 28 May 2020, chaired by Smt. Nirmala Sitharaman, Minister of Finance of the Union. Video conferences were held, and multiple reliefs were presented by the Minister of Finance on several areas. In this article, we will discuss GST Rates Reduced in 43rd GST Council Meeting.
Clarification regarding GST Rates of Goods
- IGST is levied on the repair value of goods re-imported after repairs
- Sprinklers/ drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) will attract a GST rate of 12% even when sold separately.
Reduction / Exemption in GST Rates
- Mid-day meals under any government-sponsored scheme in schools plus supplies provided to Anganwadis are now exempted from GST. The government will impose no GST on such supplies regardless of funding from government grants or corporate donations.
- GST is now exempted on examination fees charged by the National Board of Examination (NBE) or similar Central or State Educational Boards.
- Land proprietors can use GST credit from developers for those flats which are later sold by the developer and on which GST is paid. The developer promoter is eligible to pay GST for such flats at any time before or at the moment the certificate is issued.
- Continued GST exemption to MRO (maintenance, repair, and overhaul) units of the aviation sector. Furthermore, GST on MRO services regarding ships/vessels shall be reduced to 5% (from 18%). PoS of B2B supply of MRO Services in respect of ships/ vessels would be the location of the recipient of service.
- GST is exempted on milling services if the supply of wheat/paddy for public distribution system (PDS) to Government/ local authority etc., does not exceed 25 percent. Otherwise, such services would attract GST at the rate of 5% if supplied to any person registered in GST, including a person registered for TDS payment.
- The GST Exemption Benefit is for such annuities which are paid for the service by way of access to a road or a bridge. However, For annual payments received for the building of roads as of late payment, GST is payable.
- During the phase of developing ropeways, the services provided to the government entity will attract GST by 18%. However, GST is exempted from financing loans by Banks or other financial institutions to the Government and its PSUs.
Download E-Startup Mobile App and Never miss the freshest updates narrating to your business.