The GST rate on mobile phones was increased from 12% to 18% allowing a full claim of input tax credit; Relief given to domestic service providers of maintenance, repair and operations.
Addressing the media after the meeting, Finance Minister Nirmala Sitharaman also said that a better GSTN system should be ensured by Infosys by July 2020.
Here are the major decisions taken today
* GST on mobile phones, specified parts increased to 18% from 12%.
*GST on MRO (maintenance repair overhaul) services of aircraft slashed to 5% from 18%
*GST on handmade, machine-made matchsticks rationalised to 12%.
*Delayed GST payment to attract interest on net tax liability from July 1.
Important change on GSTR-1:
The GST Council decided to stagger the GSTR-1 filing for taxpayers with:
*Turnover more than Rs 1.5 cr -to file before 10th of the following month
* Turnover up to Rs 1.5 cr -to file before 13th of the following month
* The GSTR-2A can be generated on 14th of following month
*GSTR-9 and 9C due date pushed to 30th June 2020 for FY 2018-19 from 31 March 2020; Increases the turnover limit from Rs 2 cr to Rs 5 cr for the mandatory annual return filing
*The GST Council defers the proposal on the taxability of economic surplus of brand owners of alcohol for human consumption.
Mr. MS Mani, Partner, Deloitte reacted to GST Council meet- “ the approach of the GST Council to proceed with changes in returns, e-invoicing etc on an incremental basis would permit businesses to embrace these changes in a calibrated manner. Introduction of multiple changes from 1st April, as was proposed earlier , would have put added pressure on businesses, who have been grappling with multiple business and regulatory headwinds.”