27th GST Council Meeting – Changes in GST Rate
The 27th GST Council Meeting held on 4 May, 2018 has made changes in GST rate and cess on certain goods and services. The Council also has made changes in pattern of return filling, Changes in GST Return Filling, which will get applicable soon.
The Items on which GST rate has been changed are as follows:
1. Digital Transactions:
To promote cash less economy, council has discussed the proposal of a concession of 2% in GST rate (where the gst rate is 3% or more) on B2C i.e. business to customer supplies, for which payment is made through cheque or digital mode, subject to ceiling of Rs. 100 per transaction.
In simple words, payment made through cheque or digital mode and supplies for which payment made should be of B2C. The new 2% rate applies on payment of upto Rs. 100 and the supplies where current gst rate is of 3% or more. The new rate of 2% comprises of 1% CGST+ 1% SGST. The change in rate is to incentivize promotion of digital payments.
The gst council, to control the production & supply of sugar and ethanol, has discussed to impose sugar cess and to reduce gst rate. In view of the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, council announced that sugar cess will apply over and above 5% gst rate Ethanol and also there will be reduction in gst rate on ethanol.
Well, that’s all from 27 gst council meeting.View – New GST Return filling pattern.