22nd GST Council MeetingExporter Relief & Rate Corrections
The 22nd GST Council Meeting addressed critical exporter concerns with working capital relief, reduced rates on 27 items, formed a GoM on dual control administration, and adjusted compensation cess on automobiles.
Key Decisions & Outcomes
Rate Reduction on 27 Goods
GST rates reduced on 27 items including man-made yarn, stationery items, dried tamarind, custard powder, and plastic raincoats from 18%/28% to lower slabs.
Exporter Relief Package
Extension of deadline for exporters to furnish bond/LUT. Nominated agency imports exempted from IGST. Merchant exporters given 0.1% rate for procurement.
Return Filing Deadline Extensions
GSTR-1, GSTR-2, and GSTR-3 deadlines extended for July, August, and September 2017 considering initial transition challenges.
GoM on Dual Control
Group of Ministers constituted to examine dual control mechanism between Centre and States for administration of GST on goods and services.
Compensation Cess on Mid-Size Cars
Cess increased on mid-size cars (engine capacity 1200-1500cc, length exceeding 4000mm) from 15% to 17% and large cars from 15% to 20%.
Job Work Compliance Easing
Simplification of job work procedures and extension of timelines for completing job work and returning finished goods.
Notable Rate Changes
| Item | Previous Rate | Revised Rate |
|---|---|---|
| Man-made yarn | 18% | 12% |
| Dried tamarind | 12% | 5% |
| Custard powder | 28% | 18% |
| Plastic raincoats | 28% | 18% |
| Stationery items (paper clips, etc.) | 28% | 18% |
| Parts of hearing aids | 18% | Nil |
| Khakra and plain chapati | 12% | 5% |
Frequently Asked Questions
What was the main focus of the 22nd GST Council Meeting?
The 22nd GST Council Meeting focused on providing relief to exporters facing working capital blockage, reducing rates on 27 items to correct inverted duty structures, and forming a Group of Ministers to resolve the dual control issue between Centre and States.
How were exporters helped in this meeting?
Exporters received multiple reliefs: extension of bond/LUT deadlines, exemption of nominated agency imports from IGST, introduction of 0.1% concessional rate for merchant exporters procuring goods for export, and expedited refund processing timelines.
What is the dual control issue discussed in this meeting?
Dual control refers to whether Centre or States administer and audit GST taxpayers. A GoM was formed to recommend the threshold and mechanism for dividing administrative control of taxpayers between CGST and SGST authorities.
Why were compensation cess rates increased on cars?
Cess was increased on mid-size and large cars to maintain revenue neutrality after rate reductions on other items. Mid-size cars (1200-1500cc, >4m length) cess went from 15% to 17%, and large cars from 15% to 20%, while the base GST rate remained 28%.
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