The Goods and Services Tax (GST) council meeting in Goa concluded hours after after the government slashed corporate taxes, aiming to reviving private investment and lifting growth from a six-year low that has caused job losses and fueled discontent in the countryside.
Domestic companies will pay 22 per cent tax on their income from April 1, 2019, versus 30 per cent previously, Finance Minister Nirmala Sitharaman said Friday. The effective rate, including all additional levies, will be 25.2% and applicable on companies that aren't availing any incentives or exemptions.
Sitharaman's announcements and the GST council's meeting comes at a time when India's annual economic growth fell to a 25-quarter low of 5% in April-June period.
GST Council Meeting Outcome-
1. Hotel Tariffs Rs. 7,500 and above GST at 18%.
2. Hotel Tariffs Rs. 1,000 upto 7,500 GST at 12%.
3. Hotel Tariffs below Rs. 1,000 GST at Nil rate.
4. Outside Catering GST rate reduced at 5%.
5. Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%.
6. Council amended rules regarding Refund by Appellate Authority.
7. Council amended rules regarding GST Practitioners and Consumer Welfare Fund.
8. Cups/Plates made from Flowers leaves GST rate Nil from 5%.
9. GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.
10. Those with turnover above 2cr to still file GSTR9.
11. No relief in case of GSTR-9C as it’s applicable only where turnover exceeds 2cr.
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