Schedule containing rates of GST for both goods and services and the revised draft of 7 procedural GST Rules have been placed by the CBEC in public domain.
These rules relating to Registration, Valuation, Input Tax Credit (ITC), Invoice, Composition and Refund along with the rates on more than 1200 goods and host of services, have been approved by the GST Council in its meeting on 18th and 19th May, 2017 held in Srinagar.
Similarly, GST Compensation Cess Rate Schedule covering Cess rate on specified goods like motor vehicles, aerated waters, tobacco and tobacco products, has also been released.
Rates and Classification for Goods & Services - GST rate slabs for services would be similar to that for goods, i.e., 5%, 12%, 18% and 28%.
Further, while transport of goods by GTA (other than used household goods for personal use) would be liable to 5% GST without the benefit of ITC, services by way of admission to entertainment events or amusement facilities including cinemas, would be liable to 28% tax, with full ITC.
Composite supply of works contract would be liable to 18% tax and full benefit of ITC would be available. According to a separate list of exemptions released, some 82 exemptions presently available under Service Tax would be grandfathered under the new GST regime proposed to be implemented from 1st of July, 2017.
List of 18 services that will be covered under reverse charge mechanism has also been approved by the GST Council. It may be noted that GST Rate Schedule in respect of goods mentions Heading at 4 digit level in contrast to current 8 digit tariff items in the present Central Excise Tariff.
A new Classification Scheme for Services has also been proposed with more than 500 services being classified under 6-digit code.