Highlights of 20th GST Council Meeting

The 20th meeting of GST council was held in New Delhi on August 5, 2017. The below information is uploaded on the basis of GST Council’s decision and it will be subject to further vetting during which the information may undergo some changes. Key takeaways from such meeting are as under:-

1. E-Way bill should be mandatory for movement of goods worth more than Rs. 50,000.

2. Anti-profiteering mechanism will get kick start by appointing state wise committees.

3. Job work on entire value chain in textile sector to be taxed at 5%. Earlier some job work related to textile sector was taxable at 18%.

4. Rates on tractor parts brought down to 18% from 28%.

5. Government work contracts like roads, bridges, canals, etc., will now be taxable at 12% with credits. Earlier they were taxable at 18%.

6. Commission payable to Fair Price Shop Dealers by Central/ State Governments will be charged to nil rate earlier it was taxable at 18%.

7. GST rate on admission to planetarium would be reduced from 28% to 18%.

8. Rent-a-cab service would also be allowed to pay 12% GST with full ITC.

9. Goods Transport Agency Service (GTA) would also be allowed to pay 12% GST with full ITC under forward charge. (However, the GTA has to give an option at the beginning of financial year).

10. In case of small house-keeping service providers (plumbers/carpenters) providing services through E-Commerce Operators, liability to pay GST would be placed on E-Commerce Operators.

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