GST Update Vol 57 27th July 2018

Aliff FazelbhoySenior Partner, ALMT Legal, Advocates & Solicitors

A. CHANGES IN THE GST REGIME

The central government, on recommendations of the GST Council in its 28th meeting held on 21st
July, 2018, has made various amendments by way of notifications in the GST law. These amendments
are in force from today i.e. 27th July, 2018. Following is a brief of the notifications issued by
the department.

 

Amendment in GST rates

The central government vide notification no. 18/2018 – central tax (rate) dated 26th July 2018 has
amended the GST rates on various goods based on the recommendations of the GST Council. By this
notification, goods such as refrigerators, vacuum cleaners, household washing machines, television
sets of screen size not exceeding 68 cms, paints and varnishes, etc will be subject to GST rate of
18% instead of 28%. Further, similarly, the central government vide notification no. 19/2018 –
integrated tax (rate) dated 26th July 2018 has amended the IGST rates on these goods for
inter-state supplies. The central government vide notification no. 13/2018 – central tax (rate)
dated 26th July 2018 has substituted certain entries with respect to GST rates on supply of
services by amending notification no. 11/2017 – central tax (rate). By this notification,
entries substituted include entry relating to service of supply of goods being food or
any other article for human consumption provided by restaurant, eating joint etc, outdoor
catering service, etc. Further, the central government has vide notification no. 14/2018 –
integrated tax (rate) substituted these entries for inter-state supply of services. 

Exemption for certain goods

The central government vide notification no. 19/2018 – central tax (rate) dated 26th
July 2018 has amended notification no. 2/2017- central tax (rate) so as to exempt certain goods
under GST. By this notification, goods such as sanitary towels, sanitary napkins, certain type of
rakhi, deities made of stone, marble or wood, etc are now exempt. Further, the central government
vide notification no. 20/2018 – integrated tax (rate) has amended IGST rates on these goods for
inter-state supplies.

Exemption for certain services

The central government vide notification no. 14/2018 – central tax (rate) dated 26th
July 2018 has amended notification no. 12/2017 – central tax (rate) so as to exempt certain services under
GST.

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