The GST Council in its 23rd meeting held in Guwahati came up with a range of new decisions which will lead to easing tax rates and compliance issues. The meeting was held in Guwahati, Assam in which the council decided to slash tax rate on a wide range of mass use items . Nearly about 178 items have been put into lower tax category of 18 percent out of 228 items in 28 pc tax bracket previously.
Highlights of the meeting
- Revenue Secretary Hasmuksh Adhia proposed to cut the fine for late filing from Rs. 200 to Rs. 20 per day for nil liability tax filers.
- 18 percent tax with input tax credit will be charged from starred-hotels Restaurants
- Restaurants in lower category will be charged 5 percent GST without ITC
- 5% uniform tax on all AC or non-AC restaurants
- No input credit for restaurant industry
- Detergent, marble floorings, toiletries among items shifted to 18 percent tax bracket
- 178 items moved from 28 per cent to 18 per cent GST slab
- The GST Council decided that taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 on quarterly basis
- Taxpayers with a turnover of above Rs. 1.5 crore need to file GSTR-1 on monthly basis.
- The turnover threshold for composition scheme, under which businesses can pay taxes at a nominal rate, has been hiked to Rs 1 crore, from Rs 75 lakh earlier.