GST Rate revision in 31st GST council meeting
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
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.
-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.
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Recent GST Rate Changes on Goods
|S.NO||Items||New Rate||Old rate|
|1||Rakhi (other than that of precious or semi-precious material )||Nil||18%|
|3||Circulation and commemorative coins||Nil||5%|
|4||Raw material for broom||Nil||12%|
|6||Sal leaves and its products||Nil||18%|
|8||Coir pith Compost||Nil||5%|
|9||Chenille fabrics and other fabrcis under 5801||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%|
|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%|
|29||Food Grinders & mixer||18%||28%|
|31||Paints and Varnishes (including enamels and lacquers)||18%||28%|
|32||Shavers, Hair Clippers||18%||28%|
|34||Storage water heaters||18%||28%|
|36||Hair Dryers, Hand Dryers||18%||28%|
|37||Electric Smoothing irons||18%||28%|
|40||Pads for application of cosmetics or toilet preparations||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|
Recent GST Rate Changes on Services
|New GST Rates||
Old GST Rates
|Supply of e-books||
|Supply of Multimodal Transportation||
|List of Services Exempt|
|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.|
|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.|
|1. Reinsurance services provided to insurance scheme such as Pradhan Mantri Rashtriya Swasthya Suraksha Mission|
|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.|
|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.|
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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%
Children’s Drawing & Colouring Books
|0%||Unbranded Natural Honey||Prasad|
Phool Bhari Jhadoo
Roasted Coffee Beans
Skimmed Milk Powder
Footwear (< Rs.500)
|5%||Milk Food for Babies||
Apparels (< Rs.1000)
Coir Mats, Matting & Floor Covering
Mishti/Mithai (Indian Sweets)
Coffee (except instant)
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|
|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
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
5% 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
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