Download GSTR-1, 2A, 3B and compare with books of accounts to check mismatches
- 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.
Latest Updates!
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 |
||
GST Rate revision in 31st GST council meeting
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.
GST Rate revision in 31st GST council meeting
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:
| List of rate changes at 31st GST Council Meeting | ||
| 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:
- 70% of value is considered as supply of goods and taxed at 5% GST.
- Remaining 30% of the EPC contract value is supply of service and attracts standard tax rate for service.
-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).
Goods recommended for exemption
- Supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
- Proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
- Vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane) will be exempt from IGST and Compensation cess.
Services recommended for exemption
- Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under
Pradhan Mantri Jan Dhan Yojana (PMJDY) - Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at hospitals, schools or rehabilitation centres established by Government or charitable institute registered under Section 12AA of The Income tax Act,1961.
- Loan guarantee services provided by Government to its undertakings and PSUs for bank loans.
GST Rate revision in 28th GST council meeting
28th GST Council Meeting was held 21st July 2018. GST Rates for 45 Goods and 2 Services have been revised*.
Recent GST Rate Changes on Goods
| GOODS | |||
| 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% |
| List of Goods Exempt | ||
| Fortified Milk | exempt | 5% |
Recent GST Rate Changes on Services
|
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. |
GST Rate revision in 25th GST council meeting
Latest Update:
As per 25th GST Council meeting on 18th January 2018
*Note that Rate changes, Exemptions and other proposals made shall be given effect once the Notifications are issued for the same.
GST council has made the much-awaited announcements around tax rates on various categories of goods on 18th January 2018 at Vigyan Bhavan, Delhi. There has been a hype around these rates for a while and now these GST rates are finally in the public domain!
GST Rates for 29 Goods and 53 Services have been revised*. Click here to read all updates of the meet.
- Goods taxed at 0%- Vibhuti, De-oiled rice bran and parts used to manufacture hearing aids
- Reduced from 28% to 18%- Old and used motor vehicles [medium and large cars and SUVs] without ITC, Public transport Buses that run on Biofuel, Services of joy rides, Go-karting
- Reduced from 28% to 12% –Old and used motor vehicles [other than medium and large cars and SUVs] without ITC
- Reduced from 18% to 12% –Drinking water packed in 20 litres bottles, Drip irrigation system, sprinklers, Biodiesel, Sugar boiled Confectionery, Services of construction of metro / mono-rail, mining of petrol crude
- Reduced from 18% to 5% –LPG for household use, Tamarind Kernel Powder, Mehendi paste in cones, Raw materials and Consumables needed for Launch vehicles/satellites, Services of Tailoring
- Reduced from 12% to 5%-Velvet fabric( Without Refund of ITC), Articles of straw, of esparto or of other plaiting materials
- Reduced from 3% to 0.25%-Diamonds and precious stones
- Rate Increased from 0% to 5%-Rice bran (other than de-oiled rice bran)
- Rate Increased from 12% to 18%-Cigarette filter rods
- Services included in the Exemption List:
- Providing information under RTI Act, 2005
- Legal services provided to Government
- Admission to, or conduct of examination provided to all educational institutions including any service of conducting entrance examinations on collection of entrance fees
Admission to, or conduct of examination provided to all educational institutions including any service of conducting entrance examinations on collection of entrance fees
GST Rate revision in 23rd GST council meeting
Latest Update:-
As per 23rd GST Council meeting on 10th November 2017
GST Rates for 178 items have been reduced from 28% to 18%. Click here to read all updates of the meet.
- GST Rate for manufacturers and traders under composition scheme is 1 %
- Reduced from 28% to 18% W.e.f. 15th Nov 2017 – Shampoo, Perfume, tiles, watches
- Reduced from 28% to 12% – Wet grinders, tanks
- Reduced from 18% to 12% – Condensed milk, refined sugar, diabetic food
- Reduced from 12% to 5% – Desiccated coconut, idli dosa batter, coir products
- Reduced from 5% to Nil – Duar meal, khandsari sugar, dried vegetables
- For Restaurants within hotels, and room tariff less than Rs. 7,500 the GST rate is 5%. Also, the credit of ITC paid on inward supplies cannot be taken.
- For Restaurants within hotels, and room tariff greater than Rs. 7,500 the GST rate is 18% and credit of ITC paid on inward supplies can be availed.
- Outdoor catering continues to be charged at 18% with the availability of ITC on inward supplies.
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:
GST Rates Structure for Goods and services under 5%, 12%, 18% & 28%
| 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 Slabs5% Tax Slab
- Sugar, Tea, Coffee and Edible oil will fall under the 5 % slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices. However, instant food has been kept outside this bracket so, no relief for Maggie lovers!
- Coal to be taxed at 5 % against current 11.69 %. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Expect a good run for Coal India tomorrow.
- The ‘mithai’ from the neighbouring sweet shop might lose some of its flavors as Indian sweets will now be taxable at 5 %. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.
18% Tax slab
- Toothpaste, hair oil, and soaps will all be taxed at 18 %, where currently they are taxed at 28 % Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction. After all, Fair and Lovely might seem fairer in its pricing from now on!
- The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.
Services under GST Slabs
- for restaurants serving alcohol, the tax bracket will be 18 per cent
- education, healthcare are going to be exempted from GST
- services on Non-AC restaurants will be 12 %
If you want to know more about the GST rates & HSN codes, please check the below table.
GST Rates for goods and services with HSN
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.
Further Reading
Simplify Your GST Filing & Invoicing
Get Trained & Try Cleartax GST Software for FREE
