Five key clarifications issued by government are:

  1. Cess under GST – CESS applicable under GST on luxury/ demerit items will be applied on base value and not on value inclusive of GST. i.e. An item with 28% GST and 15% Cess will have effective tax rate of 43% and not 47.2%
  2. Registration window opening from June 1 is only for migration purposes. New registration would not be possible.
  3. GST Return forms are likely to be finalized in the 15th GST Council meeting scheduled to be held on 3 June 2017.
  4. Rate of GST on purchase of flat before completion is 12% of value including value of land.
  5. GST Rate for readymade garments and apparels are yet to be finalized by the GST Council.