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CA Pratibha Goyal | Jun 28, 2022 | Views 14211

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 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.

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