GST Council agrees to withdraw exemption to services provided by RBI, SEBI, IRDAI, FSSAI

GST Council agrees to withdraw exemption to services provided by RBI, SEBI, IRDAI, FSSAI GST Council authorises an 18% rate while eliminating the exe…

CA Pratibha Goyal

Jun 28, 2022

Last update on Jun 28, 2022

GST Council agrees to withdraw exemption to services provided by RBI, SEBI, IRDAI, FSSAI

GST Council authorises an 18% rate while eliminating the exemption for checks that are lose or in book form.
Withdrawal of GST exemption for department of post services, with the exception of post cards and envelopes weighing less than 10 grammes, is approved by the council.
The rise in GST on e-waste from 5% to 18% has been approved by the council.
The Council decides to end the exemption for services given by the FSSAI, RBI, SEBI and IRDAI
The council approves a 12 percent levy on hotel accommodations costing less than Rs 1,000.
The GST Council has approved the removal of the GST exemptions for several B2B purchases.
The removal of the GST exemption for storing and warehousing taxable items like sugar and natural fibre has been approved by the council.
The council decides to end the exemption for some services, such fumigating warehouses
The council decides to end the exemption for northeastern states travelling in business class
The council approves the withdrawal of exemptions for transportation by road and rail when such services are used for business.
The council decides to end the exemption for services involving animal slaughter.
Due to the inverted duty structure in food oils and coal, the GST Council disallows input tax credit (ITC) repayment.
GoM on rate rationalisation had observed substantial refund for edible oils, coal even though rate of inputs do not suggest inversion
To prevent disputes, the GST Council authorizes changing the phrase "branded" to "pre-packed and labeled" for retail sales.
Attention: Branded foods and cereals presently carry a 5 percent GST.
The council approves the continuation of the exemption for food goods and unlabeled or loose grains.
The council supports raising the GST rate from 12 to 18 percent on items such LED lamps, ink, knives, blades, power pumps, and dairy equipment.
The council decides to raise the GST on cereal milling equipment from 5% to 18%.
The council supports raising the GST rate from 5% to 11% on finished leather and solar water heaters.
GST Council authorises reversing some items' inverted duty structures.
To address inversion, the GST Council has approved raising the tax on labour contract services provided to the government and local authorities to 18 percent.
To address inversion, the CGST Council approves raising the rate on some items for petroleum from 5% to 11% on input goods.

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.