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As soon as the GST rates were announced a huge wave of curiosity hit across industry and trade bodies. Everyone is evaluating their position as a result of this change.
So in this article, we bring you our analysis of these GST rates.
The 42nd GST council meeting was held on 05 October 2020 and the following decisions have been taken regarding GST rates.
39th GST Council meeting was held on 14 March 2020, Saturday at New Delhi. Read all the highlights on 39th GST Council Meeting.
The following are the rate cuts announced at the 39th GST Council meeting:
|
Item |
Old Rate |
New Rate |
|
Mobile phones and specified parts |
12% |
18% |
|
Handmade matches |
5% |
12% |
|
Other than handmade matches |
18% |
12% |
|
Aircraft MRO (Maintenance, Repair, Overhaul) services |
18% |
5% (with full ITC) |
The rate changes are effective from 1 April 2020
38th GST Council meeting was held on 18 December 2019, Wednesday at New Delhi. Read all the highlights on 38th GST Council Meeting.
The following are the rate cuts announced at the 38th GST Council meeting:
|
Item |
Old Rate |
New Rate |
|
Lotteries (State-owned) |
12% |
28% |
|
Lotteries (State-authorised) |
28% |
28% |
|
Woven and non-woven fabrics |
12% |
18% |
|
Sacks of Polythene and Polypropylene in nature |
12% |
18% |
GST rate changes will apply from 1 March 2020 for lottery and from 1 January 2020 for bags and sacks.
GST Council had its 37th meet held at Goa on Friday (20th September 2019). Read all the highlights on 37th GST Council Meeting.
The following are the rate cuts announced at the 37th GST Council meeting:
GST Rate Revision effective from 1 October 2019
| Item | Old Rate | New Rate |
| Plates and cups made of flowers, leaves and bark | 5% | Nil |
| Caffeinated Beverages | 18% | 28%+12% cess |
| Supplies of Railways wagons & coaches (without refund of accumulated ITC) | 5% | 12% |
| Outdoor Catering (without ITC) | 18% | 5% |
| Diamond Job work | 5% | 1.50% |
| Other Job work | 18% | 12% |
| Hotels (Room Tariff of Rs.7501 or above) | 28% | 18% |
| Hotels (Room Tariff from Rs 1,001 to Rs 7,500) | 18% | 12% |
| Woven/ Non-woven Polyethylene Packaging bags | 18% | 12% |
| Marine fuel | 18% | 5% |
| Almond Milk | 18% | |
| Slide fasteners | 18% | 12% |
| Wet grinders (consisting of stone as a grinder) | 12% | 5% |
| Dried Tamarind | 5% | Nil |
| Semi-precious stones- cut & polished | 3% | 0.25% |
| Specified goods for petroleum operation under HELP* | Applicable Rate | 5% |
*Hydrocarbon Exploration Licensing Policy
| Item | Current Rate | New Rate |
| Cess on Petrol Motor Vehicles (Capacity of 10-13 passengers) | 15% | 1% |
| Cess on Diesel Motor Vehicles (Capacity of 10-13 passengers) | 15% | 3% |
GST Council had its 36th meet via video conference on Saturday (27th July 2019). Read all the highlights on 36th GST Council Meeting..
The following are the rate cuts announced at the 36th GST Council meeting:
|
Items |
Before |
After |
|
Electric chargers |
18% |
5% |
|
Electric vehicles |
12% |
5% |
A full exemption is given to hiring of e-buses(seating capacity exceeds 12 passengers) by local authorities
Note: Will come into effect from 1 August 2019 after the CBIC notification
The latest meeting-33rd GST Council meeting is rescheduled on 24th February 2019 from earlier date 20th February 2019.
It was chaired by the Finance Minister Arun Jaitley. Real estate was in limelight.
This is the first one after the Interim Budget 2019.
The GST rates were slashed on the under-construction houses without ITC benefit; No changes to GST Rate on lottery or Cement.
31st GST Coucil meeting was held 22nd December 2018. GST Rates for 23 Goods and 3 Services have been revised*.
Here is a summarised version of the list of rate cuts on both Goods and Services:
| SL.no | List of Goods/Services | Changes in Tax Rate |
| 1 | Vegetables provisionally preserved but unsuitable for immediate consumption | 5% to Nil |
| 2 | Vegetables cooked/uncooked via steamed, frozen or boiled (branded) | 5% to Nil |
| 3 | Music Books | 12% to Nil |
| 4 | Parts for manufacturing renewable energy devices falling under chapter 84, 85 or 94 of Tariff | 5% |
| 5 | Natural cork | 12% to 5% |
| 6 | Fly ash blocks | 12% to 5% |
| 7 | Walking sticks | 12% to 5% |
| 8 | Marble rubble | 18% to 5% |
| 9 | Agglomerated cork | 18% to 12% |
| 10 | Cork roughly squared or debugged | 18% to 12% |
| 11 | Articles of Natural cork | 18% to 12% |
| 12 | Movie Tickets < or = Rs 100 | 18% to 12% |
| 13 | Premium on Third party insurance on Vehicles | 18% to 12% |
| 14 | Accessories for Handicapped Mobility Vehicles | 28% to 5% |
| 15 | Power banks | 28% to 18% |
| 16 | Movie Tickets > Rs 100 | 28% to 18% |
| 17 | Video game consoles, equipments used for Billiards and Snooker and other sport related items of HSN code 9504 | 28% to 18% |
| 18 | Retreated & used pneumatic Rubber Tyres | 28% to 18% |
| 19 | Colour Television Sets & monitors up to “32 Inches” | 28% to 18% |
| 20 | Digital & Video Camera recorders | 28% to 18% |
| 21 | Pulleys, transmission shafts, cranks and gear boxes under HSN 8483 | 28% to 18% |
| 22 | Tax rate on Air travel of pilgrims reduced* | 28% to 18% |
*For travel by non-scheduled/chartered operations for religious pilgrimage which are facilitated by GoI under bi-lateral agreements. Others: -GST on the composite supply of goods attracting 5% GST rate where it is supplied along with the supply of construction services and other goods for solar power plant, is now levied as follows:
-Rate of 5%/18% to be applied based on transaction value of footwear. -Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value).
28th GST Council Meeting was held 21st July 2018. GST Rates for 45 Goods and 2 Services have been revised*.
| S.NO | Items | New Rate | Old rate |
| 1 | Rakhi (other than that of precious or semi-precious material ) | Nil | 18% |
| 2 | Sanitary Napkins | Nil | 12% |
| 3 | Circulation and commemorative coins | Nil | 5% |
| 4 | Raw material for broom | Nil | 12% |
| 5 | Stone/Marble/Wood Deities | Nil | 5% |
| 6 | Sal leaves and its products | Nil | 18% |
| 7 | Khali dona | Nil | 18% |
| 8 | Coir pith Compost | Nil | 5% |
| 9 | Chenille fabrics and other fabrcis under 5801 | 5% | 12% |
| 10 | Handloom dari | 5% | 12% |
| 11 | Phosphoric Acid (fertilizer grade only) | 5% | 12% |
| 12 | Handmade Carpets, Textile Floor, Coverings | 5% | 12% |
| 13 | Knitted cap/topi having retails sale value exceeding Rs. 1000 | 5% | 12% |
| 14 | Kota Stones and Simliar Stones (other than polished) | 5% | 18% |
| 15 | Ethanol for sale to oil marketing companies for blending with fuel | 5% | 18% |
| 16 | Solid Bio fuel pellets | 5% | 18% |
| 17 | Marine Engine | 5% | 28% |
| 18 | Bamboo Flooring | 12% | 18% |
| 19 | Hand Operated Rubber Roller | 12% | 18% |
| 20 | Brass Kerosene Pressure Stove | 12% | 18% |
| 21 | Zip and Slide Fastener | 12% | 18% |
| 22 | Handicrafts (Excluding handmade) | 12% | 18% |
| 23 | Handbags including pouches and purses; jewellery box | 12% | 18% |
| 24 | Fuel Cell vehicle | 12% | 28% |
| 25 | Televisions upto 68 cm | 18% | 28% |
| 26 | Glaziers’ putty, grafting putty, resin cements | 18% | 28% |
| 27 | Refrigerators, freezers, water cooler, milk coolers, ice cream freezer | 18% | 28% |
| 28 | Washing Machines | 18% | 28% |
| 29 | Food Grinders & mixer | 18% | 28% |
| 30 | Vacuum Cleaners | 18% | 28% |
| 31 | Paints and Varnishes (including enamels and lacquers) | 18% | 28% |
| 32 | Shavers, Hair Clippers | 18% | 28% |
| 33 | Hair Cleaners | 18% | 28% |
| 34 | Storage water heaters | 18% | 28% |
| 35 | Immersion heaters | 18% | 28% |
| 36 | Hair Dryers, Hand Dryers | 18% | 28% |
| 37 | Electric Smoothing irons | 18% | 28% |
| 38 | Scent Sprays | 18% | 28% |
| 39 | Toilet Sprays | 18% | 28% |
| 40 | Pads for application of cosmetics or toilet preparations | 18% | 28% |
| 41 | Lithium-ion batteries | 18% | 28% |
| 42 | Powder Puffs | 18% | 28% |
| 43 | Special purpose motor vehicles | 18% | 28% |
| 44 | Work Trucks (Self-propelled, not fitted with lifting or handling equipment) | 18% | 28% |
| 45 | Trailers & Semi trailers | 18% | 28% |
| Fortified Milk | exempt | 5% |
SERVICES |
||
|---|---|---|
| Rate Change | ||
Services | New GST Rates | Old GST Rates |
| Supply of e-books | 5% | 18% |
| Supply of Multimodal Transportation | 12% | Nil |
| List of Services Exempt |
| Senior Citizens |
| 1. Sevices provided by Coal Mines provident fund organisation to the PF subscribers |
| 2. Services provided by Old age home run by state government / central government to the citizens aged more than 60 years upto Rs. 25000 |
| GST exempted on the administrative fee collected by National Pension System Trust |
| 4. Services provided by an unincorporated body or non profit entiy registered under any law to own members upto Rs. 1000 per year of membership fees. |
|
Agriculture/ Farmers |
| 1. Services by way of artificial insemination of livestock (other than horses) |
| 2. Services provided by FSSAI to food businesses. |
| 3. Services provided by way of warehousing minor forest produce |
| 4. Services provided by the installation and commissioning by DISCOMS for extending electricity distribution network for agricultural use. |
|
Banking/Finance/ Insurance |
| 1. Reinsurance services provided to insurance scheme such as Pradhan Mantri Rashtriya Swasthya Suraksha Mission |
|
Government |
| 1. Guarantees given by central/state government to their undertakings/PSUs. |
| 2. Services provided by government to ERCC by assigning the right to collect royalty to mining lease holders. |
|
Miscellaneous |
| 1. Import of services by Foreign diplomatic missions/UN other international organizations |
| 2. GST rate slabs will apply on the actual rate for hotel services instead of declared tariff. |
1st September 2021
45th GST Council meeting will be held on 17th September 2021. Tax concessions on COVID-19 essentials may be extended, Matter on GST compensation to states may be taken up, correction of inverted tax structure, etc are on the agenda.
28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.
21st May 2021
43rd GST Council meeting will take place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and will be chaired by Union FM Nirmala Sitharaman.
18th February 2021
Various media sources have stated that the next 43rd/44th GST Council Meeting is set to be held in mid-March 2021.
12th October 2020
The extended 42nd GST council meeting (also referred as 43rd GST Council meet by certain media sources) was held on 12th October 2020 with the following highlights:
1. The meeting ended with no unanimity on the borrowing issue.
2. The levy of compensation cess will continue beyond the 5-year period.
3. The centre will not be able to borrow funds to meet the compensation cess shortfall.
4. It was also clarified in the press briefing that the cess collected July 2022 onwards will not be disbursed to the states.
5th October 2020
At the 1st of the 42nd GST Council meeting, the GST council discussed the pressing compensation cess issue and other matters with regard to ease of return filing and GST rate reduction.
27th August 2020
41st GST Council meeting was held on 27th August 2020 via VC with the key item on agenda being the ways to compensate for the GST revenue shortfall to the states.
12th June 2020
40th GST Council meeting concluded with major announcements made for MSMEs.
1st September 2021
45th GST Council meeting will be held on 17th September 2021. Tax concessions on COVID-19 essentials may be extended, Matter on GST compensation to states may be taken up, correction of inverted tax structure, etc are on the agenda.
28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.
21st May 2021
43rd GST Council meeting will take place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and will be chaired by Union FM Nirmala Sitharaman.
18th February 2021
Various media sources have stated that the next 43rd/44th GST Council Meeting is set to be held in mid-March 2021.
We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the GST latest news from the GST council, the tax structure for common-use goods are as under:
| Tax GRates | Products | |
|---|---|---|
| 0% | Milk | Kajal |
| 0% | Eggs | Educations Services |
| 0% | Curd | Health Services |
| 0% | Lassi | Children’s Drawing & Colouring Books |
| 0% | Unpacked Foodgrains | Unbranded Atta |
| 0% | Unpacked Paneer | Unbranded Maida |
| 0% | Gur | Besan |
| 0% | Unbranded Natural Honey | Prasad |
| 0% | Fresh Vegetables | Palmyra Jaggery |
| 0% | Salt | Phool Bhari Jhadoo |
| 5% | Sugar | Packed Paneer |
| 5% | Tea | Coal |
| 5% | Edible Oils | Raisin |
| 5% | Domestic LPG | Roasted Coffee Beans |
| 5% | PDS Kerosene | Skimmed Milk Powder |
| 5% | Cashew Nuts | Footwear (< Rs.500) |
| 5% | Milk Food for Babies | Apparels (< Rs.1000) |
| 5% | Fabric | Coir Mats, Matting & Floor Covering |
| 5% | Spices | Agarbatti |
| 5% | Coal | Mishti/Mithai (Indian Sweets) |
| 5% | Life-saving drugs | Coffee (except instant) |
| 12% | Butter | Computers |
| 12% | Ghee | Processed food |
| 12% | Almonds | Mobiles |
| 12% | Fruit Juice | Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly |
| 12% | Packed Coconut Water | Umbrella |
| 18% | Hair Oil | Capital goods |
| 18% | Toothpaste | Industrial Intermediaries |
| 18% | Soap | Ice-cream |
| 18% | Pasta | Toiletries |
| 18% | Corn Flakes | Computers |
| 18% | Soups | Printers |
| 28% | Small cars (+1% or 3% cess) | High-end motorcycles (+15% cess) |
| 28% | Consumer durables such as AC and fridge | Beedis are NOT included here |
| 28% | Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess) |
|
In addition to the above, a few other items were mentioned in the Council’s announcement of GST rates. These items and the applicable GST rates on them are as follows:Goods under GST Slabs
If you want to know more about the GST rates & HSN codes, please check the below table.
If you are using any version of Tally as accounting software, you can easily import all your sales and purchase data to ClearTax GST software and file your returns. Now you can integrate your Tally data and use ClearTax GST software for all GST compliance.
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