The nationwide goods and service tax (GST) has taken another turn in the past week. On 18th January 2018, the latest update to GST brought in an array of changes for businesses and consumers alike. The tax slabs have been revisited, along with the much-anticipated e-way bill introduction. If you are confused about the changes, read on for a clear understanding of the new updates!
The primary revisions to the tax slabs are under the 5%, 12% and 18%. The updated list is as follows:
New heads under 5%:
LPG supply, all restaurants, restaurants of hotels under tariff of 7,500 INR, food parcels, transport services, tailoring services, scientific and technical instruments
New heads under 12%:
Drinking water (20l), bio-diesel, biopesticides, drip irrigation system, state-run lotteries, non-AC hotels, business class air ticket, fertilisers and work contracts
New heads under 18%:
Second-hand medium and large cars, bio-fuel powered buses, admission to theme parks, restaurants in hotels with tariff of 7,500 INR or more, telecom and IT services, branded garments and financial services, and outdoor catering
The other major updates has been the introduction of the new nationwide e-way bill system for interstate goods movement. From 1st February, 2018, interstate goods transport worth more than 50,000 INR will need to be secured by the seller through online registration. The transporter shall be required to carry a copy of the e-way bill thus generated as a proof of sale.
The positive features of the e-way bill are that these only need to be verified once, and shall be created in standard formats across all states. A seller can also issue bulk e-way bills for multiple consignments, an issue which formed much difficulty earlier. However, what many people are considering a downside is that the recipient’s acceptance is required on the e-way bill within 72 hours, making long-standing consignments an impossibility.
GST Knowledge Base: Refund Process Under GST
The e-way bill for interstate goods movement has already been rolled out on trial basis starting 16th January, 2018 to make the businesses transition smoothly, before it comes in effect starting February. The e-way bill system for intrastate goods movement is expected to get in place by 1st June, 2018 as well.
