GST i.e Goods and Services Tax, the same whom the government called the country’s largest financial reform after independence and the opposition described it as Gabbar Singh tax. For more than a year, this tax has been implemented in the country. The government is repeatedly praising this tax system and the opposition has repeatedly counted its limitations. 28th meeting of GST council made various recommendations/decisions.
28th meeting of GST council was held on July 21, 2018. Union Finance Minister Shri Piyush Goyal chaired the Meeting and addressed the Press meet held on 21 July 2018 in New Delhi. The meeting discussed a glut of issues such as simplification of return filing procedure, recommending amendments, rationalization of GST rates, etc.
In this meeting, it was decided to reduce tax on 88 items. These are the items which are of everyday use among you and us on which either the tax has been reduced or have been completely exempted.
It is being estimated that doing so would increase an extra burden of 8000 cr to 10000 cr on the government but with the reduction in the prices of these 88 items will definitely relief middle income households. The new rates are already being effective from 27th of July.
Earlier, in January the council had revised tax rates on 29 items. The biggest rate rationalisation decision was taken by the council in November 2017, when over 200 items were brought in to lower tax brackets from 28%, 18%, and 12%.
Sanitary Napkin so far, has been placed in the 12% GST slab, are now completely exempted from the tax slab. Likewise, Rakhi, Deities made from Marble or wood, etc have been also kept exempted from the tax slab.
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Come, let’s have an overview of all the major items on which the tax slab has been reduced or which are kept completely exempted from.
Items which are completely exempted from the Tax Slab.
|Deities made from marble, stone or wood ( for boosting the marble and stone industry)||12%||Exempted|
|Rakhi (other than that of precious or semi-precious material)||5%||Exempted|
|Raw material used in brooms and brushes||12%||Exempted|
|Organic compost made from coconut fiber||5%||Exempted|
|Fortified milk (enriched with vitamins or minerals salt)||5%||Exempted|
|Services provided by old age homes (savings for senior citizens, affordable home for elders)||18%||Exempted|
|Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.||5%||Exempted|
|Water supplied for public purposes (other than in sealed containers)||5%||Exempted|
|Sal Leaves, Siali leaves and their products, Sabai Rope||5%||Exempted|
GST rates reduced from (12-18-28)% to 5%.
|Imported urea (for agricultural use)||12%||5%|
|Common-use footwears (upto Rs. 1000)||18%||5%|
|Ethanol oil (for sale to Oil Marketing Companies for blending with fuel)||18%||5%|
|E-books (To promote digital education)||18%||5%|
|Knitted cap/topi (retail sale value not exceeding Rs 1000)||12%||5%|
|Phosphoric acid (fertilizer grade only)||12%||5%|
|Chenille fabrics and other fabrics||12%||5%|
|Handmade carpets and other handmade textile floor coverings (including namda/gabba)||12%||5%|
|Hand-made braids and ornamental trimming in the piece||12%||5%|
GST rates reduced from 18% to 12%.
|Brass Kerosene Pressure Stove||18%||12%|
|Hand Operated Rubber Roller||18%||12%|
|Zip and Slide Fasteners||18%||12%|
The below specified handicraft items have been recommended to be brought down in the GST tax slab ( as per the definition of handicraft, as approved by the GST council )
Handicraft items to now be taxed at 12 percent.
|Handbags (including pouches and purses); jewellery box||18%||12%|
|Wooden frames for painting, photographs, mirrors, etc||18%||12%|
|Artware of cork (including articles of sholapith)||18%||12%|
|Stone artware, stone inlay work||18%||12%|
|Ornamental framed mirrors||18%||12%|
|Glass statues (other than those of crystal)||18%||12%|
|Glass artware ( including pots, jars, votive, cask, cake cover, tulip bottle, vase )||18%||12%|
|Artware of iron||18%||12%|
|Artware of brass, copper/ copper alloys, electroplated with nickel/silver||18%||12%|
|Handcrafted lamps (including panchloga lamp)||18%||12%|
|Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes, etc||18%||12%|
GST rates reduced from 28% to 18%.
|Paints and varnishes||28%||18%|
|Glaziers’ putty, grafting putty, resin cements||28%||18%|
|Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer, etc||28%||18%|
|Washing machines, vending machines||28%||18%|
|Lithium-ion batteries (boost to make in India and auto sector, minimize greenhouse emissions, affordable electric vehicles )||28%||18%|
|Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, hair shaver, hair clippers, hair dryers, etc||28%||18%|
|Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons, etc||28%||18%|
|Televisions upto the size of 68 cm (27 inches)||28%||18%|
|Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries||28%||18%|
|Works trucks (self-propelled) of the type used in factories, warehouses, dock areas or airports for short transport of goods||28%||18%|
|Trailers and semi-trailers||28%||18%|
|Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations||28%||18%|
|All leather items||28%||18%|
Rate changes made in respect of footwear:
- 5% GST is being applicable to footwear having a retail sale price up to Rs. 1000 per pair.
- Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%.
Amendments regarding applicability of GST rate with respect to certain goods and services recommended by GST Council in its 28th meet includes:
- Traders with turnover up to 5 crore rupees will deposit GST monthly but they have to file the returns quarterly. So far, businesses with turnover of up to Rs. 1.5 crore were permitted to file returns quarterly.
- Exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh and Sikkim has been increased from 10 L to 20 L.
- To reduce the harassment of the transporters at toll plazas, the government will soon link RFID tags with Goods and Services Tax Network (GSTN).
- Treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder both attracts 5% GST rate.
- Water supplied for public purposes (other than in sealed containers) is exempted from GST.
- Beet and cane sugar, including refined beet and cane sugar, attracts 5% GST rate.
- Works of installing and commissioning undertaken by DISCOMs/electricity distribution companies are exempted for extending electricity distribution network to the tube well of the farmer or for agricultural use.
- GST of 28% will attract if hotel room rents extends Rs. 7500. GST of 18% will attract between Rs. 2500 to below Rs. 7500 and that of Rs. 1000 to Rs. 2500 will attract 12% of GST.
The next meeting of GST Council is scheduled to be held on 4 August 2018. The meeting will primarily focus on the issues facing the Micro, Small & Medium Enterprise (MSME) sector. The meeting will also focus on promoting and increasing digital payments.
Also Read: Major Decisions by GST council in its 28th GST council meeting