The GST panel, headed by Finance Minister Arun Jaitley and comprising representatives of all states, at its 25th meeting at Vigyan Bhawan decided to reduce the tax rate on 29 items and 53 categories of services with effect from January 25.
The major highlights of the meeting are:
1. Filing of GSTR 3B will continue, but a final decision would be taken in the next Council meet.
2. E-way bill system would be rolled out from February 1 and 15 states are on board for obtaining intra-state bill
3. The law review committee recommended re-introducing reverse charge mechanism (RCM) only for dealers under composition scheme.
4. Rates of goods such as bio-diesel, packaged drinking water (packed in 20 liters bottle), drip irrigation system, mechanical sprayer, bio-pesticides, sugar boiled confectionery, etc. have been brought down to 12 percent from 18 percent.
5.Tax on sales of liquefied petroleum gas (LPG) by private firms for domestic use has been reduced to 5% from 18%.
6. Motor vehicle will now attract 18% tax from earlier 28%
7. Rice Bran will attract 0% tax from 5% earlier
8. The tax rate on velvet fabric has been reduced to 5% from 12%.
9. Tax rate on mining, drilling of natural gas has been reduced to 12%
10. Cess on vehicles for ambulance also reduced to 0% from 15% earlier.
11. The decision on inclusion of real estate in GST has been deferred.
12. In the services segment, the council will reduce taxes on transportation of crude, gas oil, gasoline, jet fuel and services relating to mining, exploration, and drilling of oil and natural gas, among other things.
13. Diamonds and precious stones will now attract 0.25 percent GST instead of 3 percent, while vibhuti and de-oiled brown rice will attract nil tax.
14. The fitment committee will fix rates of 40 handicraft items
15. GST Panel also decided to divide Rs 35,000 crore IGST collections between centre and states
GST Council may in their next meeting decide requirement of filing only two returns i.e. GSTR 3B and GSTR 1 and may do away with GSTR 2 and GSTR 3.