GST Council recommends many relief on GST rates

Speed Post News Network

New Delhi : The GST Council at its 25th meeting in New Delhi on January 18, 2018, recommended many relief measures regarding GST rates on goods and services covering many sectors and  commodities. The Council has also recommended issuance of certain clarifications on issues relating to GST rates and taxability of certain goods and services. Union Finance Minister Arun Jaitley Chaired the meeting.

The meeting recommended reduction of GST rate from 18 % to 12 % on the Work Contract Service (WCS) by sub-contractor to the main contractor providing WCS to the Central Government, State Government, UT, a local authority. It also recommended reduction of GST rates from 18 % to 5% on tailoring services besides reducing GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18%, according to a PIB release.

The GST Council also recommended reduction in GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18% besides reduction in GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works) from 18% to 12%. It also recommended reduction in GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.

The GST Council exempted services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification from the GST besides   exempting services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.

The GST Council has extended the concessional rate of GST on houses constructed/ acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (Urban) and low-cost houses up to a carpet area of 60 square metres per house in a housing project which has been given infrastructure status, as proposed by Ministry of Housing & Urban Affairs, under the same concessional rate.