28th GST Council held on July 21, 2018 – Highlights
July 24, 2018
Members of the Council
Sub : 28th GST Council held on July 21, 2018 – Highlights
As you are aware, the GST rates for several items were reduced in the 28th GST Council meeting held on July 21, 2018. The following are the major decisions taken in the said GST Council meeting, pertaining to leather sector
Rate change made in respect of footwear
o 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair
o Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%
As of now, footwear with MRP upto RS.500/- is having 5% GST while GST for footwear with MRP above RS.500/- is 18%
GST Rate reduction from 28% to 18%
· Paints and varnishes (including enamels and lacquers)
GST Rate reduction from 18% to 12%:
o Zip and Slide Fasteners
GST rates have been recommended to be brought down for specified handicraft items [as per the definition of handicraft, as approved by the GST council] from 18% to 12%:
· Handbags including pouches and purses; jewellery box
GST Rate reduction from 12% to 5%:
o Handmade carpets and other handmade textile floor coverings (including namda/gabba)
· Exemption granted on outward transportation of all goods by air and sea by another one year i.e. upto 30th September, 2019 as relief to the exporter of goods.
· Quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility
4 Decision pertaining to non-profit organisations
· Exempt services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in activities relating to the welfare of industrial or agricultural labour or farmer; or for the promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment, to own members against consideration in the form of membership fee up to an amount of one thousand rupees per member per year.
5 Composition Scheme
1. As per present scheme, manufacturers who have turnover upto Rs. 1 crore have the option to pay 1% GST on turnover, on optional basis.
2. Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
The Press Releases issued by the Ministry of Finance are enclosed herewith. Members may kindly note the above.
Thanks and regards
R. Selvam IAS
COUNCIL FOR LEATHER EXPORTS