Sale of bottled water on same rate Post GST

On account of implementation of GST there may be instances where the retail sale price of a pre-packaged commodity is required to be changed. Department of Consumer Affairs has therefore issued an advisory on the matter.

Further, vide this advisory it has been informed inter alia, that for reducing the Retail Sale Price (MRP), a sticker with the revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer or importer, as the case may be, on the label of the package, which includes the packed water bottles also.

The said information has already been disseminated to all the Controllers of Legal Metrology of all States/ UTs for immediate necessary action.

Further, Section 171 of the GST Act provides that:

(1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.

(2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.

This information was given by Shri C. R. Chaudhary, the Minister of State for Consumer Affairs, Food and Public Distribution, in a written reply to a question in Rajya Sabha, today.

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AK
(Release ID :169227)

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GST Tip – 284

As per Notification No. 11/2017-Central Tax (Rate), Central Tax is to be levied at Nil rate for Support services to agriculture, hunting, forestry, fishing, mining and utilities which are falling under HSN / SAC 9986. For details of services falling under 9986 refer to https://indiagstdotin.wordpress.com/2017/07/28/support-services-to-agriculture-hunting-forestry-fishing-mining-and-utilities/

Support services to agriculture, hunting, forestry, fishing, mining and utilities

Heading no.9986 Support services to agriculture, hunting, forestry, fishing, mining and utilities.
Group 99861 Support services to agriculture, hunting, forestry and fishing
998611 Support services to crop production
998612 Animal husbandry services
998613 Support services to hunting
998614 Support services to forestry and logging
998615 Support services to fishing
998619 Other support services to agriculture, hunting, forestry and fishing
Group 99862 Support services to mining
998621 Support services to oil and gas extraction
998622 Support services to other mining n.e.c.
Group 99863 Support services to electricity, gas and water distribution
998631 Support services to electricity transmission and distribution
998632 Support services to gas distribution
998633 Support services to water distribution
998634 Support services to Distribution services of steam, hot water and air-conditioning supply

GST Tip – 283

As per Notification No. 11/2017-Central Tax (Rate) services falling under HSN/SAC 9988 are related to job work in specific cases and they are Manufacturing services on physical inputs (goods) owned by others. It clearly means that the job worker is not supposed to add any material on his side if he adds then it will be a supply. These services attract central tax rate of 2.5% and other services at 9%. Details are given in https://indiagstdotin.wordpress.com/2017/07/27/services-by-way-of-job-work-falling-under-hsn-sac-9988/

Services by way of job work falling under HSN / SAC 9988

(i) Services by way of job work in relation to-
(a) Printing of newspapers;
(b) Textile yarns (other than of man-made fibres) and textile fabrics;
(c) Cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);
(d) Printing of books (including Braille books), journals and periodicals;

(e) Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975).
Explanation.- “man made fibres” means staple fibres and filaments of organic polymers produced by manufacturing processes either,-
(a) by polymerisation of organic monomers to produce polymers such as polyamides, polyesters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process [for example, poly(vinyl alcohol) prepared by the hydrolysis of poly(vinyl acetate)]; or
(b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates.

(ii) Manufacturing services on physical inputs (goods) owned by others, other than (i) above.

Heading no. 9988 Manufacturing services on physical inputs (goods) owned by others
Group 99881 Food, beverage and tobacco manufacturing services
998811 Meat processing services
998812 Fish processing services
998813 Fruit and vegetables processing services
998814 Vegetable and animal oil and fat manufacturing services
998815 Dairy product manufacturing services
998816 Other food product manufacturing services
998817 Prepared animal feeds manufacturing services
998818 Beverage manufacturing services
998819 Tobacco manufacturing services n.e.c.
Group 99882 Textile, wearing apparel and leather manufacturing services
998821 Textile manufacturing services
998822 Wearing apparel manufacturing services
998823 Leather and leather product manufacturing services
Group 99883 Wood and paper manufacturing services
998831 Wood and wood product manufacturing services
998832 Paper and paper product manufacturing services
Group 99884 Petroleum, chemical and pharmaceutical product manufacturing services
998841 Coke and refined petroleum product manufacturing services
998842 Chemical product manufacturing services
998843 Pharmaceutical product manufacturing services
Group 99885 Rubber, plastic and other non-metallic mineral product manufacturing service
998851 Rubber and plastic product manufacturing services
998852 Plastic product manufacturing services
998853 Other non-metallic mineral product manufacturing services
Group 99886 Basic metal manufacturing services
998860 Basic metal manufacturing services
Group 99887 Fabricated metal product, machinery and equipment manufacturing services
998871 Structural metal product, tank, reservoir and steam generator manufacturing services
998872 Weapon and ammunition manufacturing services
998873 Other fabricated metal product manufacturing and metal treatment services
998874 Computer, electronic and optical product manufacturing services
998875 Electrical equipment manufacturing services
998876 General-purpose machinery manufacturing services n.e.c.
998877 Special-purpose machinery manufacturing services
Group 99888 Transport equipment manufacturing services
998881 Motor vehicle and trailer manufacturing services
998882 Other transport equipment manufacturing services
Group 99889 Other manufacturing services
998891 Furniture manufacturing services
998892 Jewellery manufacturing services
998893 Imitation jewellery manufacturing services
998894 Musical instrument manufacturing services
998895 Sports goods manufacturing services
998896 Game and toy manufacturing services
998897 Medical and dental instrument and supply manufacturing services
998898 Other manufacturing services n.e.c.
Heading no. 9989 SAC / HSN Number Other manufacturing services; publishing, printing and reproduction services; materials recovery services
Group 99891 Publishing, printing and reproduction services
998911 Publishing, on a fee or contract basis
998912 Printing and reproduction services of recorded media, on a fee or contract basis
Group 99892 Moulding, pressing, stamping, extruding and similar plastic manufacturing services
998920 Moulding, pressing, stamping, extruding and similar plastic manufacturing services
Group 99893 Casting, forging, stamping and similar metal manufacturing services
998931 Iron and steel casting services
998932 Non-ferrous metal casting services
998933 Metal forging, pressing, stamping, roll forming and powder metallurgy services
Group 99894 Materials recovery (recycling) services, on a fee or contract basis
998941 Metal waste and scrap recovery (recycling) services, on a fee or contract basis
998942 Non-metal waste and scrap recovery (recycling) services, on a fee or contract basis