Decisions taken by the GST Council in its 37th Meeting held on 20.09.2019
Decisions taken by the GST Council in its 37th Meeting held on 20.09.2019
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GST COUNCIL IN ITS 37th MEETING HELD ON 20th SEPTEMBER, 2019
GST Council Meeting Outcome
1. Hotel Tariffs Rs. 7,500 and above GST at 18%.
2. Hotel Tariffs Rs. 1,000 upto 7,500 GST at 12%.
3. Hotel Tariffs below Rs. 1,000 GST at Nil rate.
4. Outside Catering GST rate reduced at 5%.
5. Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%.
6. Council amended rules regarding Refund by Appellate Authority.
7. Council amended rules regarding GST Practitioners and Consumer Welfare Fund.
8. Cups/Plates made from Flowers leaves GST rate Nil from 5%.
9. GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.
10. Those with turnover above 2cr to still file GSTR9.
11. No relief in case of GSTR-9C as it’s applicable only where turnover exceeds 2cr.
12. GSTR-9 also to be made “Saral”.
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37th GST Council Meeting – Press release – Services and Final_Press Release_GSTPW_20092019
Honourable Finance Minister Nirmala Sitharaman addressed a press conference today
Honourable Finance Minister Nirmala Sitharaman addressed a press conference today. The government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No.2) Act 2019. Following are the changes
?A new provision inserted in the income tax act with effect from fiscal year 2019-20 allows any domestic company to pay income tax at the rate of 22 per cent subject to condition they will not avail any incentive or exemptions. The effective tax rate shall be 25.17% inclusive of surcharge & cess and such companies would not have to pay minimum alternative tax (MAT).
?The government has decided to expand the scope of spending 2 per cent profits on corporate social responsibility (CSR) to allow spending on incubators or research grants to institutes engaged in promoting science research.
?The MAT rate has been reduced from 18.5 per cent to 15 per cent.
?Enhanced surcharge levied in the Budget shall not apply on capital gains arising in sale of equity shares in a company or a unit of a business trust or an equity fund liable to Securities Transaction Tax (STT).
?Enhanced surcharge will not apply to capital gains arising on sale of any securities including derivatives in the hands of foreign portfolio investors.
?For new companies incorporated after October 1, 2019 and commencing production by March 31, 2023, the income tax rate will be 15 per cent. The effective tax rate for these companies will be 17.01 per cent and such firms will also not be required to pay any MAT.
?For listed companies that have announced buyback before July 5, 2019, tax on buyback of shares shall not be charged.
Regards,
CA Rohit Goyal
GST Council Important Decision (20.9.19)
GST Council Important Decision (20.9.19)
1. GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.
2. Those with turnover above 2 cr to still file GSTR 9.
3. No relief in case of GSTR-9C as it’s applicable only where turnover exceeds 2cr.
4. GSTR-9 also to be made “Saral”
Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs
Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs
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Delhi High Court allows the Petitioner to file GST TRAN-1 manually & claim ITC
Delhi High Court allows the Petitioner to file GST TRAN-1 manually & claim ITC.
Court categorically mentions the series of orders which recognized the difficulties faced by tax payers in filing the GST TRAN-1 within 27th December, 2017. In some of those cases, the inability to file the GST TRAN-1 was due to technical glitches and also mentioned the sampling of such orders of DHC in its Order dt. 16/9/2019.
Hope you will find it useful in pursuit of your Professional endeavours.
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Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs
Corporate tax rates slashed to 22% for domestic companies and 15% for
new domestic manufacturing companies and other fiscal reliefs
The Government has brought in the Taxation Laws (Amendment)
Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the
Finance (No. 2) Act 2019. The salient features of these amendments are as under:-
a) In order to promote growth and investment, a new provision has
been inserted in the Income-tax Act with effect from FY 2019-20
which allows any domestic company an option to pay income-tax at
the rate of 22% subject to condition that they will not avail any
exemption/incentive. The effective tax rate for these companies shall
be 25.17% inclusive of surcharge & cess. Also, such companies shall
not be required to pay Minimum Alternate Tax.
b) In order to attract fresh investment in manufacturing and thereby
provide boost to ‘Make-in-India’ initiative of the Government,
another new provision has been inserted in the Income-tax Act with
effect from FY 2019-20 which allows any new domestic company
incorporated on or after 1st October 2019 making fresh investment
in manufacturing, an option to pay income-tax at the rate of 15%.
This benefit is available to companies which do not avail any
exemption/incentive and commences their production on or before
31st March, 2023. The effective tax rate for these companies shall
be 17.01% inclusive of surcharge & cess. Also, such companies
shall not be required to pay Minimum Alternate Tax.
c) A company which does not opt for the concessional tax regime and
avails the tax exemption/incentive shall continue to pay tax at the
pre-amended rate. However, these companies can opt for the
concessional tax regime after expiry of their tax holiday/exemption
period. After the exercise of the option they shall be liable to pay tax
at the rate of 22% and option once exercised cannot be subsequently
withdrawn. Further, in order to provide relief to companies which
continue to avail exemptions/incentives, the rate of Minimum
Alternate Tax has been reduced from existing 18.5% to 15%.
d) In order to stabilise the flow of funds into the capital market, it is
provided that enhanced surcharge introduced by the Finance (No.2)
Act, 2019 shall not apply on capital gains arising on sale of equity
share in a company or a unit of an equity oriented fund or a unit of a
business trust liable for securities transaction tax, in the hands of an
individual, HUF, AOP, BOI and AJP.
e) The enhanced surcharge shall also not apply to capital gains arising
on sale of any security including derivatives, in the hands of Foreign
Portfolio Investors (FPIs).
f) In order to provide relief to listed companies which have already
made a public announcement of buy-back before 5
th July 2019, it is
provided that tax on buy-back of shares in case of such companies
shall not be charged.
g) The Government has also decided to expand the scope of CSR 2
percent spending. Now CSR 2% fund can be spent on incubators
funded by Central or State Government or any agency or Public
Sector Undertaking of Central or State Government, and, making
contributions to public funded Universities, IITs, National
Laboratories and Autonomous Bodies (established under the
auspices of ICAR, ICMR, CSIR, DAE, DRDO, DST, Ministry of
Electronics and Information Technology) engaged in conducting
research in science, technology, engineering and medicine aimed at
promoting SDGs.
The total revenue foregone for the reduction in corporate tax rate and other relief
estimated at Rs. 1,45,000 crore.
CBDT issues clarification on linking of PAN with Aadhaar
CBDT issues clarification on linking of PAN with Aadhaar.
There were reports in media that PANs which are not linked with Aadhaar by 31.03.2019 may be invalidated. Now,the cut-off dt for intimating Aadhaar no & linking PAN with Aadhaar is 30.09.2019, unless specifically exempted.