Update on GST Acts and Rules

The Government is making all efforts to stick to the timeline of 1st July for GST implementation. In the 15th GST Council meeting on 3rd June, 2017, the rates of 6 items were decided, including gold, footwear and textiles. All the states, except West Bengal, have also agreed to roll out GST from 1st July, 2017. Following is the status update on the GST Act and rules:

In the 16th GST Council meeting on 11th June, 2017, the GST Council lowered the tax rates for 66 items and raised the limit on turnover for composition tax payers from Rs. 50 Lakhs to Rs. 75 Lakhs.

GST Acts

• CGST Act, IGST Act, UTGST Act and Compensation to the States Act have been passed in the Parliament and have received presidential assent on 13th April, 2017. Following are the finalized Acts:

CGST Act

IGST Act

UTGST Act

Compensation to the States Act

• SGST Act has been passed in 25 states, the latest being Meghalaya.

Rules

GST rules finalized are:

• Composition
• Valuation
• Input Tax Credit
• Invoice, debit and credit notes
• Payment
• Refund
• Registration
• Return
• Accounts and Records
• Transition

Rules on Advance ruling, Appeals and revision, Assessment and audit, e-Way bill are still in draft.

Formats

GST formats have been finalized and are given below:

• Composition formats
• ITC formats
• Payment formats
• Refund formats
• Registration formats
• Return formats:
  • GSTP formats
  • Mismatch formats
  • Return formats
• Accounts and records
• Transition

Rate Schedule

Over 1200 goods and 500 services have been assigned GST rates in the 4 tax brackets of 5%, 12%, 18% and 28%. There is also a Cess over and above the peak rate of 28% on demerit and luxury goods. The finalised rate schedule of goods and services is given below:

Goods	Services
Goods decided in GST Council meeting on 18.5.’17 Rate schedule Addendum to the Rate Schedule	Rate schedule
Goods decided in Council meeting on 3.6.’17 Rate schedule Addendum to the Rate Schedule	Services under Reverse Charge
Goods decided in Council meeting on 11.6.’17 Rate schedule	Classification scheme for services
Compensation Cess rates	Classification scheme for services
IGST exemption and concessions list Approved in meeting on 3.6.’17 Approved in meeting on 11.6.’17

The next GST Council meeting is scheduled on 18th June, 2017, to discuss issues related to e-way bills and lottery.