GST Rate revision in 28th GST council meeting

GST Rate revision in 28th GST council meeting

Recent 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		12%
3	Circulation and commemorative coins		5%
4	Raw material for broom		12%
5	Stone/Marble/Wood Deities		5%
6	Sal leaves and its products		18%
7	Khali dona		18%
8	Coir pith Compost		5%
9	Chenille fabrics and other fabrcis under 5801	5%	12%
10	Handloom dari
11	Phosphoric Acid (fertilizer grade only)
12	Handmade Carpets, Textile Floor, Coverings
13	Knitted cap/topi having retails sale value exceeding Rs. 1000
14	Kota Stones and Simliar Stones (other than polished)		18%
15	Ethanol for sale to oil marketing companies for blending with fuel
16	Solid Bio fuel pellets
17	Marine Engine		28%
18	Bamboo Flooring	12%	18%
19	Hand Operated Rubber Roller
20	Brass Kerosene Pressure Stove
21	Zip and Slide Fastener
22	Handicrafts (Excluding handmade)
23	Handbags including pouches and purses; jewellery box
24	Fuel Cell vehicle		28%
25	Televisions upto 68 cm	18%	28%
26	Glaziers’ putty, grafting putty, resin cements
27	Refrigerators, freezers, water cooler, milk coolers, ice cream freezer
28	Washing Machines
29	Food Grinders & mixer
30	Vacuum Cleaners
31	Paints and Varnishes (including enamels and lacquers)
32	Shavers, Hair Clippers
33	Hair Cleaners
34	Storage water heaters
35	Immersion heaters
36	Hair Dryers, Hand Dryers
37	Electric Smoothing irons
38	Scent Sprays
39	Toilet Sprays
40	Pads for application of cosmetics or toilet preparations
41	Lithium-ion batteries
42	Powder Puffs
43	Special purpose motor vehicles
44	Work Trucks (Self-propelled, not fitted with lifting or handling equipment)
45	Trailers & Semi trailers

List of Goods Exempt
Fortified Milk	exempt	5%

Recent Rate Changes on Services

SERVICES
Rate Change
Services	New Rates	Old 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

3. 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.

2. 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 rates are finally in the public domain!

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

3. GST Rate revision in 23rd GST council meeting

Latest Update:-

As per 23rd GST Council meeting on 10th November 2017

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 latest news from the GST council, the tax structure for common-use goods are as under:

GST Rates Structure

Tax Rates	Products
0%	Milk	Kajal
	Eggs	Educations Services
	Curd	Health Services
	Lassi	Children’s Drawing & Colouring Books
	Unpacked Foodgrains	Unbranded Atta
	Unpacked Paneer	Unbranded Maida
	Gur	Besan
	Unbranded Natural Honey	Prasad
	Fresh Vegetables	Palmyra Jaggery
	Salt	Phool Bhari Jhadoo
5%	Sugar	Packed Paneer
	Tea	Coal
	Edible Oils	Raisin
	Domestic LPG	Roasted Coffee Beans
	PDS Kerosene	Skimmed Milk Powder
	Cashew Nuts	Footwear (< Rs.500)
	Milk Food for Babies	Apparels (< Rs.1000)
	Fabric	Coir Mats, Matting & Floor Covering
	Spices	Agarbatti
	Coal	Mishti/Mithai (Indian Sweets)
	Life-saving drugs	Coffee (except instant)
12%	Butter	Computers
	Ghee	Processed food
	Almonds	Mobiles
	Fruit Juice	Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly
	Packed Coconut Water	Umbrella
18%	Hair Oil	Capital goods
	Toothpaste	Industrial Intermediaries
	Soap	Ice-cream
	Pasta	Toiletries
	Corn Flakes	Computers
	Soups	Printers
28%	Small cars (+1% or 3% cess)	High-end motorcycles (+15% cess)
	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 rates. These items, and the applicable rates on them are as follows:

• Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent 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!

• 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”.

• Coal to be taxed at 5 percent against current 11.69 percent. 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.

• Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. 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 ‘mithai’ from the neighbouring sweet shop might lose some of its flavor as Indian sweets will now be taxable at 5 per cent. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.

Plus, it was announced that:

• 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 per cent

If you want to know more about the GST rates & HSN codes, please check the below table.

4. GST Rates for goods and services with HSN

Chapter 1	Live Animals, Bovine & Poultry
Chapter 2	Meat & Edible Offal of Animals
Chapter 3	Fish Meat & Fillets
Chapter 4	Eggs, Honey & Milk Products
Chapter 5	Non Edible Animal Products
Chapter 6	Live Trees & Plants
Chapter 7	Vegetables
Chapter 8	Fruits & Dry Fruits
Chapter 9	Tea, Coffee & Spices
Chapter 10	Edible Grains
Chapter 11	Milling Industry Products
Chapter 12	Oil Seeds, Fruit & Part of Plants
Chapter 13	Gums, Resins, Vegetable SAP & Extracts
Chapter 14	Vegetable Material & Products
Chapter 15	Fats, Oils & Waxes their Fractions
Chapter 16	Preserved/Prepared Food Items
Chapter 17	Sugar, Jaggery, Honey & bubble Gums
Chapter 18	Chocolate & Cocoa Products
Chapter 19	Pizza, Cake, Bread, Pasta & Waffles
Chapter 20	Edible Plants – Fruits, Nuts & Juices
Chapter 21	Tea & Coffee Extract & Essence
Chapter 22	Water – Mineral & Aerated
Chapter 23	Flours, Meals & Pellets
Chapter 24	Tobacco, Stemmed & Stripped
Chapter 25	Salts & Sands
Chapter 26	Mineral Ores & Slags
Chapter 27	Fossil Fuels – Coal & Petroleum
Chapter 28	Gases & Non Metals
Chapter 29	Hydrocarbons – Cyclic & Acyclic
Chapter 30	Drugs & Pharmaceuticals
Chapter 31	Fertilisers
Chapter 32	Tanning & Colouring Products
Chapter 33	Essential Oils, Beauty Products
Chapter 34	Soaps, Waxes, Polish products
Chapter 35	Casein, Albumin, Gelatin, Enzymes
Chapter 36	Propellants, Explosives, Fuses, Fireworks
Chapter 37	Photographic & Cinematographic Films
Chapter 38	Insecticides, Artificial Carbon & Graphite
Chapter 39	Polymers, Polyethylene, Cellulose
Chapter 40	Rubber, Plates, Belt, Condesnsed Milk
Chapter 41	Raw hides & Skins, Leather
Chapter 42	Trunks, Suit-cases, Vanity cases
Chapter 43	Raw Fur Skins, Articles of apparel
Chapter 44	Fuel wood, Wood Charcoal
Chapter 45	Natural Cork, Shuttlecock Cork
Chapter 46	Plaiting Materials, Basketwork
Chapter 47	Mechanical & Chemical woodpulp
Chapter 48	Newsprint, Uncoated paper & paperboard
Chapter 49	Printed Books, Brochures, Newspapers
Chapter 50	Silk Worm Coccon, Yarn, Waste & Woven Fabrics
Chapter 51	Wool materials & Waste, Animal Hairs
Chapter 52	Cotton materials, Synthetics & Woven fabrics
Chapter 53	Flex raw, Vegetable materials & Paper yarn
Chapter 54	Synthetic felaments, Woven fabrics & Rayons
Chapter 55	Synthetic felament tows & Polyster staple fiber
Chapter 56	Towels, Napkins, ropes & Netting materials
Chapter 57	Carpets & Floor coverings textile Handlooms
Chapter 58	Labels, Bades, Woven pile & Chennile, Terry towelings
Chapter 59	Rubberised textile fabrics, Convayer belts
Chapter 60	Pile,Wrap Knit,Tarry & Croched fabrics
Chapter 61	Men & Women Clothing
Chapter 62	Men & Women Jackets, Coats & Garments
Chapter 63	Blankets & Bedsheets
Chapter 64	Shoes & Footwear Products
Chapter 65	Hats & Accessories
Chapter 66	Umbrellas & Accessories
Chapter 67	Artificial flowers, Wigs & False Beards
Chapter 68	Monumental & Building Stones
Chapter 69	Bricks, Blocks & Ceramics
Chapter 70	Glasses, Mirrors, Flasks
Chapter 71	Pearls, Diamonds, Gold, Platinum
Chapter 72	Iron, Alloys, Scrap & Granules
Chapter 73	Iron tube, piles & Sheets
Chapter 74	Copper Mattes, Rods, Bars, Wires, Plates
Chapter 75	Nickel Mattes & Unwrought Nickel
Chapter 76	Unwrought Aluminium- Rods, Sheets & Profiles
Chapter 78	Unwrought Lead – Rods, Sheets & Profiles
Chapter 79	Unwrought Zinc – Rods, Sheets & Profiles
Chapter 80	Unwrought Tin – Rods, Sheets & Profiles
Chapter 81	Magnesium, Cobalt, Tungsten Articles
Chapter 82	Hand Tools & Cutlery
Chapter 83	Locks, Metal Mountings & Fittings
Chapter 84	Industrial Machinery
Chapter 85	Electrical Parts & Electronics
Chapter 86	Railway Locomotives & Parts
Chapter 87	Tractors & Motor Vehicles
Chapter 88	Balloons, Parachutes & Airlift Gear
Chapter 89	Cruise Ships & Boats
Chapter 90	Medical, Chemical & Astronomy
Chapter 91	Watches & Clocks
Chapter 92	Musical Instruments
Chapter 93	Military Weapons & firearms
Chapter 94	Furniture, Bedding & lighting
Chapter 95	Children Toys, Table & Board Games & Sports Goods
Chapter 96	Pencil Lighter Toiletries
Chapter 97	Paintings Decoratives Sculptures
Chapter 98	Machinery Lab Chemicals Drugs Medicines
Chapter 99	Services

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.