Important Changes in GST w.e.f. 01-10-2019

Reverse Charge

Renting of Motor Vehicle

Services provided by way of renting of motor vehicle by any Individual/Firm/LLP to any Body corporate (companies), covered under reverse charge mechanism, taxable @5%. However, if the service provider charges GST @12% then he can continue with Forward Charge. Then no Reverse Charge applicable.

Exemption

Warehousing (Notification No 21/2019- Central Tax (Rate)

W.e.f 01.10.2019, services provided by way of storage or warehousing of cereals, pulses, fruits, nuts & vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc, indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea are exempt from tax. Earlier this exemption was on limited items of agricultural produce and few other products.

Transportation of goods by Air/Vessel(Notification No 21/2019)

The services by way of transportation of goods by an aircraft or vessel from customs station of clearance in India to a place outside India shall be exempted till the 30th day of September 2020. This exemption was to end on 31.03.2019. However, it has been extended for a further 1 year.

Exports against Supply by Nominated Agency (Notification No 17/2019)

The Central Government under Notification No 26/2018, exempted supply of gold supplied by Nominated agency to the recipient under ‘Export against Supply by Nominated Agency’ subject to certain conditions mentioned in said notification. Now it also includes “Silver and platinum” under ‘Export against Supply by Nominated agency’ Scheme, w.e.f. 01.10.2019

Composition Scheme

Aerated Water (Notification No. 18/2019 and 43/2019)

Any person engaged in the manufacturing of aerated water shall not be eligible to levy tax under Composition Scheme, w.e.f. 01.10.2019. However, if a dealer has taken registration under composition scheme of 6% tax as goods and service provider both, then he cannot even trade-in aerated water.

Rate Changes

Packing Material (Notification No 14/2019)
Bags of polyethylene, bulk containers of man-made fibers chargeable at the tax rate of 12%. (earlier it was 5% in some cases(tariff 63053200 and 63053300) and 18% in some cases (tariff 3923), w.e.f. 01.10.2019
Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of kind use of packing of goods, shall be chargeable at the rate of 12%., w.e.f. 01.10.2019

Caffeinated Beverages(Notification No 17/2019)

The taxable rate on all the caffeinated beverages increased from 18% to 28%, w.e.f 01.10.2019 (Ex- Energy Drinks such as red bull). However, it is still a confusion as to which beverages are to be considered caffeinated beverages.

Precious or semi-precious Stone (other than diamonds) (Notification No 14/2019)
The semi-precious stones shall be now taxable at the rate of 0.25% (earlier it was 3%). The long-pending demand of the Jewellers has been fulfilled. However, pearls continue to be charged at 3% tax rate.

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