Saturday, May 5, 2018

Outcome of 27th GST Council Meeting on May 04th, 2018

SIMPLIFICATION OF RETURNS
GST Council today in its 27th meeting approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification.


CHANGE IN THE SHAREHOLDING PATTERN OF GSTN
Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of government.
Considering the nature of ‘state’ function performed by GSTN, Council in its meeting held today decided that GSTN be converted into be a fully owned government Company.


INCENTIVE TO PROMOTE DIGITAL TRANSACTIONS
Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.
The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.


IMPOSITION OF SUGAR CESS OVER AND ABOVE 5% GST AND REDUCTION IN GST RATE ON ETHANOL
The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.

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