19th January, 2020

Exercise to balance GST goes on, read about major revisions

The government was lately found revising the GST. More such revisions are likely to follow as the GST council has been resetting the anomalies in tax-filings. Several exemptions are made way to revive the industry.  

Few revisions

  • The GST on direct sales to patients of imported life-saving medicines has been exempted under certain conditions.
  • The entry-fee charged at “protected monuments” will not be subject to the levy of GST.
  • The govt is yet to clarify on permanent transfer of intellectual property such as copyrights and patents for software will attract 18% GST, while it will be 12% for all others.
  • The GST on entry fee at Taj Mahal or Red Fort comes with a massive compliance burden as these monuments will have to separately register with the GST Network and then file returns every month.
  • Similarly, the GST Council decided to provide relief to the infrastructure sector and other companies by exempting them from payment of integrated GST (IGST) on imports of goods (other than motor vehicles) under a lease agreement.
  • This business that use leased machinery will also be relieved. The Metro rail projects that lease tunnel-boring machines and several other businesses will face benefit.
  • There is relief for milk producers who depend on skimmed milk power or concentrated milk. The IGST exemption will be extended that is applicable on skimmed milk powder or concentrated milk when supplied to dairy cooperatives but it will also be available when milk is distributed through companies registered under the Companies Act.
  • Scientific or technical instruments and software supplied to public-funded research institutions or a university or IITs or NITs have also been exempted.
  • The GST Council has also clarified that supply of e-waste which attracts 5% GST, will apply only to e-waste discarded as waste by the consumer or bulk consumer. The GST rate related to manufacture of handicrafts, where the casual taxable person has been exempted from obtaining registration, will be to be reduced to 5% and full input tax credit will be given.