The 37th GST Council Meeting was held on September 20, 2019 with the Finance Minister Nirmala Sitharaman presiding as the chairperson. This meeting featured a number of key announcements which are as follows:
GST Filing Updates at 37th GST Council Meeting
The following were the key GST law and procedure changes announced at the 37th GST Council meeting.
- Waiver of the mandatory requirement of filing Form GSTR-9A for MSME composition taxpayers for FY 2017-18 and FY 2018-19.
- Filing Form GSTR-9 has been made optional for MSME taxpayers with an aggregate turnover of up to Rs. 2 crores for FY 2017-18 and FY 2018-19.
- New GST return system will be introduced from April, 2020 (earlier proposed from October, 2019).
- Due date for furnishing of return in Form GSTR-3B and details of outward supplies in Form GSTR-1 for October, 2019 to March, 2020 will be announced in accordance with the new GST return system.
- Integrated refund system with disbursal by a single authority will be introduced from 24th September, 2019.
GST Rate Changes at 37th GST Council Meeting
The new GST rates will be applicable from 1st October, 2019. The following are the key instances of GST rate reduction announced in the 37th GST Council Meeting:
|Goods||Old GST Rate||New GST rate|
|Parts of slide fasteners||18%||12%|
|Marine fuel 0.5% (FO)||18%||5%|
|Wet grinders (consisting stone as a grinder)||12%||5%|
|Plates and cups made of leaves/flowers/bark||5%||Nil|
|Cut and semi-polished precious stones||3%||0.25%|
|Specified Goods for petroleum operations under HELP (Hydrocarbon Exploration Licensing Policy)||As per previously applicable rate||5%|
The following are the key instances of GST rate increments announced at the council meeting:
|Goods||Old GST Rate||New GST rate|
|Railway wagons, coaches, rolling stock (without refund of accumulated Input Tax Credit/ITC)||5%||12%|
|Caffeinated beverages||18%||28% + 12% cess|
GST/IGST Updates at 37th GST Council Meeting
The council also announced GST/ IGST exemptions from 1st October 2019 in the following instances:
- Imports of specified defence goods not being manufactured indigenously (up to 2024)
- Supply of goods and services to FIFA and other specified persons for organizing the Under-17 Women’s Football World Cup in India.
- Supply of goods and services to Food and Agriculture Organization (FAO) for specified projects in India
Jewellery Sector- Exemptions from GST/IGST
The following items and services in the jewellery sector will be exempt from GST/IGST from 1st October, 2019:
- Import of silver/platinum by specified nominated agencies, including Diamond India Limited (DIL)
- Supply of silver/platinum by specified nominated agency, including DIL to exporters for exports of jewellery
Uniform GST Rate Polypropylene/Polyethylene
A uniform rate of 12% GST will be applicable on Polypropylene/Polyethylene Woven and Non-Woven Bags and sacks, whether or not laminated used for packing of goods (from present rates of 5%/12%/18%) from 1st October, 2019.
GST Concessions for Specified Period
- Fishmeal has been exempted from GST for the period 1st July, 2017 to 30th September, 2019. However, any tax collected for this period should be deposited.
- 12% GST on pulleys, wheels and other parts (falling under heading 8483) used for agricultural machinery for the period 1st July, 2017 to 31st December, 2018.
GST Compensation Cess reduced on Motor Vehicles
|Fuel Type||Diesel Vehicle||Petrol Vehicle|
|Length||Not exceeding 4m||Not exceeding 4m|
|Carrying capacity||More than 10 persons but up to 13 persons||More than 10 persons but up to 13 persons|
|New GST Compensation Cess||3% (earlier 15%)||1% (earlier 15%)|
Other Rate Changes
- Aerated drink manufactures will be excluded from composition scheme.
- 18% GST on transaction value of disposal of goods for petroleum operations if,
- 5% GST was paid at the time of original supply, and
- the disposed goods are certified by Directorate General of Hydrocarbons (DGH) as non-serviceable
- All mechanical sprayers (HS Code 8425) will attract 12% GST.
- Solar evacuation tubes for solar power based devices will attract 5% GST.
- Parts and accessories that are solely or mainly used with a medical device (headings 9018, 9019, 9021 or 9022) will attract 12% GST.
- Almond milk will attract 18% GST.
Changes in GST rates on Services
The changed GST rates on services as per announcement made at the 37th GST Council meeting be applicable from 1st October, 2019.
Hospitality and Tourism
GST will be reduced on hotel accommodation.
|Transaction Value per unit per day (Rs.)||GST Rate|
|Rs. 1000 and less||Nil|
|Rs. 1001 to Rs. 7500||12%|
|Rs. 7501 and more||18%|
GST reduced on Outdoor Catering Services, excluding those in premises having daily tariff on unit of accommodation of Rs. 7501 or more from 18% with input tax credit (ITC) to 5% without ITC.
Job Work Service
- GST will be decreased from 5% to 1.5% on supply of job work services in relation to diamonds.
- GST will be reduced from 18% to 12% on supply of machine job work, such as in engineering industry. However, GST on supply of job work in relation to bus body building will remain 18%.
GST Exempted Services
|Sector||Exempted Service (Nil GST Services)|
|Warehousing||Storage of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee and tea.|
|Transportation||Conditional exemption of GST on export freight by air or sea till 30th September, 2020.|
|Insurance||“BANGLA SHASYA BIMA” (BSB) crop insurance scheme of West Bengal Government.|
Services of life insurance business provided by the Central Armed Paramilitary Forces Group Insurance Funds to their members under the respective group Insurance Schemes.
Other Exemptions announced at 37th GST Council Meeting
- Services provided by an intermediary to a goods supplier or recipient when both the supplier and recipient are located outside the taxable territory.
- Services related to FIFA Under-17 Women’s World Cup 2020.
Know More about GST Rates