Monday, January 21, 2019


GST Council puts sugar-boiled candy, 20-litre bottled water in 12% slab
Saturday, 20 January, 2018, 08 : 00 AM [IST]
Ashwani Maindola, New Delhi
The Goods and Services Tax (GST) Council has slashed the rates of tax levied on sugar-boiled confectionery and drinking water packed in 20-litre bottles from the erstwhile 18 per cent to 12 per cent.

It met in New Delhi recently to analyse the recommendations made by the empowered committee of ministers, which was formed to look into GST-related matters.

“It has been proposed that a notification be issued, giving effect to the Council’s recommendations on January 25, 2018, to be effective from midnight the same day,” said a statement issued by the Council.

It added, “Sugar-boiled confectionery bearing HSN Code 1704 had now effectively been placed in the 12 per cent rate. The rates were reduced from the earlier 18 per cent. Similarly drinking water packed in 20-litre bottles were also placed in the 12 per cent slab vis-a-vis the erstwhile 18 per cent.”

Ghanshyam Bhagchandani, proprietor, Varun Food Products, Nagpur, said, “It is a good move by the GST Council. It will be very beneficial for small retailers, as their consumer base will increase again with the current reduction. Even the end consumers will be happy with the price reduction on the candies.”

Viral Shah, chief executive officer, Swan Sweets Pvt Ltd, said, “It is very welcome move and the industry is definitely happy with the reduction in the rate. The companies will be able to get a higher margin with this move.”

He added that with the industry having a higher margin hence, the benefit could be passed further down the chain as schemes.

The Council has also decided to reduce tax rates on drip irrigation system laterals and sprinklers from 18 per cent to 12 per cent. Besides, tamarind kernel powder has also been placed in the five per cent slab from the erstwhile 18 per cent slab.

Meanwhile, it also recommended some policy changes. These included:

The late fee payable by any registered person for failure to furnish Form GSTR-1 (supply details), Form GSTR-5 (non-resident taxable person) or Form GSTR-5A [online information and database access or retrieval (OIDAR) systems] is being reduced from Rs 50 per day and shall be Rs 20 per day for nil filers. The late fee payable for failure to furnish Form GSTR-6 (input service distributor) shall be Rs 50 per day. 

Taxable persons who have obtained voluntary registration will now be permitted to apply for the cancellation of the registration even before the expiry of one year from the effective date of registration. 

For migrated taxpayers, the last date for filing Form GST REG-29 for the cancellation of the registration is being extended by three months till March 31, 2018. 

The facility for generation, modification and cancellation of e-way bills is being provided on a trial basis on the portal Once fully operational, the e-way bill system will start functioning on the portal

Certain modifications are being made to the e-way bill rules which are to be notified nationwide for inter-state movement with effect from February 1, 2018 and for intra-state movement with effect from a date to be announced separately by each State, but not later than June 1, 2018.
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