19/06/2017
After the 17th GST council meet, headed by Finance Minister, Arun Jaitley in New Delhi, it seems that the roll out of GST is unstoppable. From a layman to a businessman, the waves of GST roll out are all around the corner. Almost all major bills are being cleared by the Council.
? Relaxation in filing of returns
The council has also relaxed GST return filing timelines for July and August. “To obviate any lack of preparedness, a slight relaxation of time for two months—July-August—has been given. From September, strict adherence to time will go on,” finance minister Arun Jaitley told reporters. As per the revised return filing timeline decided by the GST Council, for July, the sale returns will have to be filed by 5 September instead of 10 August.
? Filing of invoices
GSTR-1 with invoice level details needs to be filed for the month of July by 5th September, and for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter.
? Tax rates of hotels
- It has been decided that accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff is Rs 2500/- and above but less than Rs 7500/- per room per day shall attract GST rate of 18% with full ITC.
- Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per day per room shall attract GST rate of 28% with full ITC.
? ITC on ships
It has been decided in respect of the service of transport of goods by a vessel that GST rate of 5% will be available with ITC in respect of input services and GST paid on ships, vessels including bulk carriers and tankers
? E-way bills deferred
The GST electronic waybill would be deferred. It would be implemented later, after rules for it are finalised. Till such a time, an alternative e-way bill would be introduced to allow continuance of the current system.
? Anti Profiteering rules
GST Council cleared Anti-profiteering rules.
? Official Launch of GST
- The official launch of the goods and services tax (GST) is slated for mid-night of 30 June and 1 July.
? GST on restaurants in these hotels will be at par with other air-conditioned restaurants (18%)
Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel shall attract GST rate of 18% with full ITC.
? In nutshell
| Sl. No. | Description of Services | GST Rate |
| 5 | Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in nontaxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India | 5% with ITC of input services and ITC of GST paid on ships, vessels including bulk carriers and tankers |
| 24 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff is Rs 2500/ and above but less than Rs 7500/- per room per day | 18% With Full ITC |
| 31 | Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel | 18% With Full ITC |
| 32 | Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per room per day | 28% With Full ITC |
It has been decided that supply of lottery shall attract GST rates as under –
- Lottery run by State Governments – 12% of face value of lottery ticket
- Lottery authorized by State Governments – 28% of face value of lottery ticket
Finance Minister, Arun Jaitley also made it clear that “A number of companies and trade have been raising the issue of lack of preparedness. We don’t have the luxury of time to defer GST implementation.”
The next meeting is scheduled to be held on June 30, 2017.
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About the author
HIMANSHU TIWARI
CHARTERED ACCOUNTANT
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