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Home» Circulars» Gst Recommendations Of 25th Gst Council Meeting Pertaining To Exports Chemical Sector

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GST - Recommendations of 25th GST Council Meeting (pertaining to exports/ chemical sector)
 


CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4th Floor, 7, Cooperage Road, Mumbai - 400 001. India

Tel : +91 22 22021288 Website : www.//chemexcil.in

 


          19th Jan 2018

EPC/LIC/25TH GST_COUNCIL

 

ALL MEMBERS OF THE COUNCIL

 

GST

 

  • Recommendations made on GST Rate changes on services by the 25th GST Council Meeting (pertaining to Exports/ Chemical sector)
  •  
  • Policy Changes recommended by the 25th GST Council Meeting
  •  
  • Recommendations made on GST Rate changes on services by the 25th GST Council Meeting

 

Dear Members,

 

Kindly take note  that the  25th Meeting of GST Council was held in New Delhi  on 18/11/2018.

 

As per press notes released  by  CBEC/PIB, the  recommendations pertaining to  exports/ chemical sector  are highlighted as follows:  

 

Recommendations of Changes relating to GST rates on certain services pertaining to Exports/ Chemical sector

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria

 


To grant following exemptions:

(i) To exempt service by way of  transportation of goods from India to a place outside India by air;
(ii) To exempt service by way of transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC.
The above exemptions may be granted with a sunset clause upto 30th September, 2018.

To exempt IGST payable under section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of  aggregate of the duties and taxes leviable  under section 3(7) of the Customs Tariff Act, 1975 read with sections 5 & 7 of IGST Act, 2017 on part of consideration declared under section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.

To exempt dollar denominated services provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India.

To reduce GST on Common Effluent Treatment Plants services of treatment of effluents, from 18% to 12%.

To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods.

To exempt government’s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se.

  •  
  • Policy Changes recommended by the 25th GST Council Meeting
  •  

The following Policy Changes have been recommended by the GST Council in its 25th meeting held today:

 

  • 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 (OIDAR) is being reduced to fifty rupees per day and shall be twenty rupees per day for NIL filers. The late fee payable for failure to furnish FORM GSTR-6 (Input Service Distributor) shall be fifty rupees per day.
  •  
  • Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of 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 cancellation of registration is being extended by further three months till 31st March, 2018.
  •  
  • The facility for generation, modification and cancellation of e-way bills is being provided on trial basis on the portal ewaybill.nic.in. Once fully operational, the e-way bill system will start functioning on the portal ewaybillgst.gov.in
  •  
  • Certain modifications are being made to the e-way bill rules which are to be notified nationwide for inter-State movement with effect from 01.02.2018 and for intra-State movement with effect from a date to be announced separately by each State but not later than 01.06.2018.

 

  • Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods

 

The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today.

The items pertaining to Chemical sector  are being highlighted below:

 

 REDUCTION FROM 18% TO 12%:

 


S. No.

Chapter/Heading/Sub-heading/Tariff item

Description

3.

2809

Fertilizer grade Phosphoric acid

4.

29 or 38

Bio-diesel

5

38

The following Bio-pesticides, -


S. No.

Name of the bio pesticide

1

Bacillus thuringiensis var. israelensis

2

Bacillus thuringiensis var. kurstaki

3

Bacillus thuringiensis var. galleriae

4

Bacillus sphaericus

5

Trichoderma viride

6

Trichoderma harzianum

7

Pseudomonas fluoresens

8

Beauveriabassiana

9

NPV of Helicoverpaarmigera

10

NPV of Spodopteralitura

11

Neem based pesticides

12

Cymbopogan

  

MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

 

S.
No

Chapter/
Heading/
Sub-heading/
Tariff item

Description

Present GST Rate

Modification/clarification Recommended

  •  

27

Poly Butylene Feed Stock & Liquefied Petroleum Gas

18%

The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.

 

As per press releases, it is proposed to issue notification giving effect to the recommendations of the Council from  25th January, 2018.


Members are requested to kindly take note of the above recommendations of the 25th GST Council meeting which are pertaining to exports/ chemicals sector.  As and when notifications are issued, we shall update you.  The original press release’s are available for download using below links.


http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-25-council-meeting-3.pdf
http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-25-council-meeting-1.pdf
http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-25-council-meeting-2.pdf

 

 

Thanking you,

 

Yours faithfully,

 

(S.G BHARADI)
EXECUTIVE DIRECTOR
CHEMEXCIL

 

 

 
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