22/07/2018
*Key Decisions Of The GST Council Which Will Help Industry a Lot*
1. *Hotel industry* GST To be charged on Transaction Value and Not On Declared Tariff.
2. *E-Books*- GST on supply of e-books has been reduced from 18 to 5%
3. *Composite supply of multimodal transportation* Prescribe GST rate of 12% with full ITC under forward charge
4. *Fabric Manufacturer*- Refund of accumulated credit on account of inverted duty structure to fabric manufacturers. Earlier Fabrics attract GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed.
5. *Quarterly filing of return*- for the small taxpayers having turnover below Rs. 5 Cr as an optional facility.
6. *NIL return filers*- (no purchase and no sale) shall be given facility to file return by sending SMS.
7. *Composition Scheme*- Turnover limit Increased from Rs. 1 crore to Rs. 1.5 crore.
8. *Composition dealers to be allowed to supply services*- (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
9. *If Payment Not Made in 180 Days From Date Of Invoice*- ITC availed by the recipient will be reversed, but liability to pay interest is Removed
10. *Consolidated credit/debit notes* in respect of multiple invoices issued in a Financial Year can be raised
11. *Supply of services to qualify as exports*-, even if payment is received in Indian Rupees, where permitted by the RBI.
12. Transactions Not to be treated as Supply and therefore no Tax (under Schedule III):
a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
13. *Scope of input tax credit is being widened*- , and it would now be made available in respect of the following:
a. Most of the activities or transactions specified in Schedule III;
b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
c. Motor vehicles for transportation of money for or by a banking company or financial institution;
d. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
e. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.
