05.05.2018: As discussed at the 27th GST Council Meeting held on May 4, 2018, the GST council has proposed these recent changes in the GST rate and incentives. It includes Gst incentive for making digital transactions, the imposition of sugar cess in GST, and reduction of GST rate on ethanol. Let us see the changes in detail:
1. Incentives to promote digital transactions
A) Considering the need to go to the low cash economy, the Council has discussed in detail the proposal of giving a 2% concession in the GST Tax rate. This will be applicable where the GST tax rate is 3% or more. 1% each shall be applicable from CGST and SGST respectively on B2C supplies. The condition is that the payment of these supplies shall be made through cheque or digital mode. At the same time, the transaction amount shall be more than Rs. 100 per transaction, so as to incentivize the promotion of digital payment.
B) Considering the opinion expressed in the GST Council, before the next council meeting, the council has recommended the formation of groups of state government ministers, to monitor the proposal and make recommendations.
2. Applying sugar cess on and over 5% GST, reduces on Ethanol
A) Considering the record production of sugar in the current sugar season and considering the price of depressed sugar and the construction of sugarcane balances, the Council discussed the issue of sugar cess load and a large number of detailed incidents at the rate of GST at ethanol.
B) Considering the opinions expressed in the GST conference in this regard, the council recommended two weeks’ recommendation to set up groups of state ministers and make recommendations.
The press note covers the GST incentive for making digital transactions, imposition of sugar cess in GST, and reduction of GST rate on ethanol. Keep visiting the GST India news website for more updates on GST in India.
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