GST Updates

GST Updates (July '22)

Central Board of Indirect Tax and Custom (CBIC) has released various notifications enforcing various recommendations of 47th GST Council meeting held on 29th June 2022 and related to E-invoicing.
Applicable from 18.07.2022

RELATED TO GOODS

  1. Rates on over 100 goods have been amended like Printing Ink, LED Lamps, Lights, Solar water heater etc.
  2. GST on specified food items, grains etc, whether branded or not will attract GST of 5%, if goods are pre-packaged and pre-labelled
  3. Rate on E-waste have been increased from 5% to 18%.

For detailed information on GST on prepackaged and prelabelled goods, please click here).
Please check rate of products from relevant notifications or consult with your GST expert.

RELATED TO SERVICES

  1. Work Contract Services:

    1. Rate of GST have been increased to 18% from current 12% on work contract services provided to Central/State Government Local Authority, Railway Etc.
    2. Work contract services include services related to Roads, Bridges, Railways Canals, Banks, Pipelines, Irrigation related works etc.
    3. Accordingly rate on sub contact services have been increased to 18%.

  2. Transportation Services:

    1. Renting of Truck/Goods carriages where cost of fuel is included have been reduced to 12%.
    2. Services provided by Goods Transporting Agency i.e. Freight is now fully taxable even if Consideration charged is less than Rs. 750.
    3. Goods transporting agency have been given an option to pay GST at 5% (without ITC) or 12% (with ITC) under Forward charge. 
      1. Note: The last date for exercising the above option for any financial year is the 15th March of the preceding financial year.
      2. The option for the financial year 2022-2023 is to be exercised by 16th August, 2022 (whether opting for 5% or 12%).

  3. Exemption on following services have been withdrawn

    1. Transportation by rail of Railway equipment and material.
    2. Storage and warehousing of commodities which attract GST i.e. Nuts, Spices, Jaggery etc.
    3. Renting of Residential Dwelling to business entities for Residence purpose.
    4. Hotels: Rooms with tariff up to Rs.1000 per day will attract 12% GST.
    5. Hospital: Room rent exceeding Rs.5000 per day per patient charged by Hospital will attract 5% GST.
    6. Services by Food Safety and Standards Authority of India (FSSAI) by way of Licensing, registration, testing of food sample ETC will now be taxable.
    7. Fumigation in a warehouse of agricultural produce is now taxable.

  4. Annual Return (Form GSTR-9): FY 21-22

    1. Exemption from filing Annual Return for assessee upto turnover Rs 2 Crores.
    2. Filing of Annual return of FY 21-22 have started on GST Portal. 

HIGHLY IMPORTANT
Hon'ble Supreme Court have ruled to allow all assessee a one time option to file Form GST Tran-1 to claim ITC during transitional period i.e. 01.07.2017.
  1. Claim of carry forwarded Input Tax Credit of VAT/ Excise/ Service Tax as on 30.06.2017
  2. Claim of Excise duty on stock as on 30.06.2017.
Circular by GST Department of it's implementation is still awaited.
IMPORTANT
E-Invoicing have been made applicable for all assessee with Turnover exceeding Rs 10 Crores in any financial year starting From FY 17-18 w.e.f. 01.10.2022.

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