Recently updated on February 27th, 2022 at 02:31 am
The 31st GST Council meeting that occurred on 22nd December 2018 at the Vigyan Bhawan, New Delhi had tried to excuse the Goods and Services Tax levy for the citizens and dealers who have GST registration. The council presented essential changes as respects GST rate decrease on different products and services.
Without a doubt, the Goods and Services Tax Councilhas largely met the desires of the consumers with regard to the GST rearrangements and rate reductions. For example, 6 things as of now have been expelled from the highest 28% GST section. Tax on such goods has been cut from 28% to 18%.
GST Council in the 31st meeting took important choices in relating with a decrease in GST rates on different services, and qualification of Input Tax Credit. In addition, a few services have been exempted from GST. These rate cuts will clearly profit the citizens and merchants having GST registration.
The progressions in GST rates on services on services have been discussed here in a very exceptional and straightforward way for a simple understanding of the users.
1. Where has GST been Decreased?
GST rates have been decreased on services as given underneath
On Movie tickets costing above ₹100 GST will be decreased from 28% to 18% and on film tickets up to ₹100 from 18% to 12%.
GST on outsider insurance premium of business vehicles (goods transporters) will be diminished from 18% to 12%.
2. Which Services are exempted from GST?
The accompanying services will be exempted from GST:
Services of business banks to clients having Basic Saving Bank Deposit (BSBD) accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
Services provided by the Rehabilitation experts perceived under the Rehabilitation Council of India Act, 1992 by the way of NGOs and the instructive organizations, and Rehabilitation Centres founded and is run by the Central or State Government or the Union Territories administration. This also includes those companies that are enrolled under segment 12AA of Income Tax Act 1961.
Services by a Goods Transport Agency (GTA) to the Government divisions or other local authority which have taken GST registration just as tax deductors u/s 51 of CGST Act 2017. These will be exempted from GST under Reverse Charge as well.
Services that are provided by the Central or State Government to the PSUs by the method of advances taken by them from banks and financial institutions.
3. Which services have seen rationalization in GST rate?
Air travel through non-booked or charter planes, for a religious journey, given by the Government of India under different bilateral treaties will now be available in a similar rate of GST as that of the flights in Economy class of regular Air travel, i.e. 5% with input credit.