28th GST Council Meeting Held on 21 July 2018

28th GST Council Meeting Held on 21 July 2018

The 28th GST Council Meeting was held on 21 July 2018 on Saturday. There are so many important issues to be discussed at this meeting. The taxpayers have so much hope from the meeting about the amendments and other decisions regarding the GST rates and Returns. So, let us look at the highlights of the GST Council meeting.

GST Council in the meeting held at New Delhi on 21.07.2018 took following decisions relating to exemptions/changes in GST rates / ITC eligibility criteria, rationalization of rates/exemptions and clarification on levy of GST on services. The decisions of the GST Council enclosed as annexure has been presented in simple language for ease of understanding which would be given effect to through Gazette notifications/ circulars which shall have the force of law. 

It would be noted that multiple reliefs from GST taxation have been provided to following categories of services –
(i) Agriculture, farming, and food processing industry,
(ii) Education, training and skill development,
(iii) Pension, social security and old age support.

The hotel industry has been given major relief by providing that the rate of tax on accommodation service shall be based on transaction value instead of declared tariff.

Services provided in sectors like banking, IT have been provided relief. By exempting services supplied by an establishment of a person in India to any establishment of that person outside India [related party].

As a green initiative, GST on the supply of e-books has been reduced from 18 to 5%.

For details of major decisions on services, Annexure to this press note may be referred.

It is proposed to issue notifications giving effect to these recommendations of the Council with effect from 27th July 2018.

So, view the detailed Annexure of such Exemptions/Changes in GST Rates and Services.