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37th GST Council Meeting - Highlights
Abhishek Kumar / 2020-01-31 05:19:0937th GST Council meeting held at Goa on 20th September, 2019. Under 37th GST Council meeting lots of major decision taken by our Indian Government which was announced by our Union Finance & Corporate Minister Nirmala Sitharaman.
These are the highlights of the meeting
All rate changes will be effective from October 1 2019.
A- Exemption in Goods and Services/ Changes and Reduction in GST Rates/ Criteria for ITC Eligibility:
1- Rates Reduction:
Hospitality and tourism:
Reduction of GST rates on hotel accommodation stated as below
Reduction of GST rates on outdoor catering service having daily transaction limit as Rs. 7501 from 18% with ITC at present to 5% without ITC. The rates will remain mandatory for all kind of catering. Catering in premises will remain the same as 18% with ITC.
Job work service
1-Reduction of GST rates from 5 % to 1.5% on the supply of service related to diamonds.
2-Reduction of GST rates from 18% to 12% on the supply of jobs of machine work such as engineering industry. The rates will remain at 18% for jobs related to bus bodybuilding.
2- Exemption:
Warehousing:
Exempt of prospective services such as storage or warehousing of
Transportation
Increment the validity of conditional exemption of GST rates on exports of bulk transportation via sea or air by September 30th, 2020.
Insurance
1- Exemption of Bangla Shasya Bima crop insurance scheme provided by the West Bengal government.
2- Exemption of life insurance provided by the Central Armed Parliamentary Force Group Insurance fund to their members.
Export promotion
Exemption of services provided by third party to a supplier or recipient of goods when both the supplier and the recipient are not located inside the taxable territory.
1- A notification is to be issued under section 13(13) of the IGST act informing the place where R&D services will be supplied by Indian pharma companies to foreign companies exempted from GST charges.
2- The place of supply should be clarified as the location inside India where the chip design software R&D is provided by Indian companies to foreign clients by using sample test kits as per section 13(3)(a) of IGST Act, 2017.
3- Infringement the validity of conditional exemption of GST rates on exports of bulk transportation via sea or air by September 30th, 2020. To provide further relief to the exporters having GST Registration Online.
Miscellaneous
The registered author’s now have an option to pay GST on royalty charged by the publishers under forward charge and undertake regular GST compliance.
The grant of liquor licence by state government is to be notified against the payments of licence fees as “no supply” so as to remove implementational ambiguity.
Services related to FIFA under 17 women's World cup 2020 will be exempted which is similar to the exemption given to FIFA under 17 World cup held in 2017.
B- Rationalization/ Trade Facilitation
Measures
RCM is now allowed to the suppliers paying @5% GST on renting vehicles from a registered person other than a corporate body (LLP, proprietorship).
C- Clarifications
The scope of entry of services related to exploring mining or drilling of petroleum crude or natural gas is to be clarified.
The taxability of Passenger Service Fee, as well as User Development Fee which is levied by the airport operators, is to be clarified.
