GST Council Cuts Rate on 88 Items on 21 July 2018
GST Council in its 28th meeting on 21st July, 2018, reduced Goods & Services Tax (GST) rates on 88 various goods & rationalised rates on various services. GST exempted from various services in sectors like agriculture, education & social security.
GST Rates Reduction | |||||
28% to 18% | 28% to 12% | 18% , 12% , 5% to Nil | 12% to 5% | 18% to 12% | 18% to 5% |
Paints & varnishes | Fuel Cell Vehicle | Stone⟋Marble⟋Wood Deities | Chenille fabrics | Bamboo flooring | Ethanol for sale to Oil Marketing Companies |
Glaziers putty, grafting putty, resin cements | Rakhi | Handloom dari | Brass Kerosene Pressure Stove | Solid bio fuel pellets | |
Refrigerators, water cooler | Sanitary Napkins | Phosphoric acid | Hand Operated Rubber Roller | ||
Washing machines | Coir pith compost | Knitted cap | Zip & Slide Fasteners | ||
Lithium-ion batteries | Sal Leaves siali leaves & their products | ||||
Vacuum cleaners | Raw material for Jhadoo | ||||
Domestic electrical appliances | Khali dona | ||||
Storage water heaters, hair dryers, hand dryers | Circulation & commemorative coins, sold by SPMCIL to Finance Ministry | ||||
Televisions up to size of 68 cm | |||||
Crane lorries, fire fighting vehicle, concrete mixer lorries | |||||
Trailers & semi-trailers |
GST Rates on Footwear
- 5% GST will be levied on footwear having retail sale price of up to ₹ 1000.
- Footwear having retail sale price exceeding ₹ 1000 will attract 18% GST.
GST Rate Change on Specified Handicraft Items
18% to 12% | 12% to 5% |
Handbags including pouches & purses; jewellery box | Handmade carpets & other handmade textile floor coverings |
Wooden frames for painting, photographs | Handmade lace |
Art ware of cork | Hand-made braids & ornamental trimming |
Stone art ware | Hand-woven tapestries |
Ornamental framed mirrors | Toran |
Glass statues, Glass art ware, Art ware of iron | |
Art ware of brass, copper, nickel electro plated, aluminium | |
Handcrafted lamps | |
Articles of wax, stearin, natural gums or natural resins | |
Ganjifa card |
GST Exemption on Various Services
- GST Council announced exemptions & changes in GST rates on various services in sectors like agriculture, education & social security.
Exemptions for Agriculture, Farming & Food Processing Industry
- Exempt services by way of artificial insemination of livestock
- Exempt warehousing of minor forest produce
- Exempt works of installation & commissioning undertaken by DISCOMS for extending electricity distribution network to tube well for agricultural use
- Exempt services provided by FSSAI to food business operators
Exemption in Education, Training and Skill Development
- Reduction in GST rate from 18% to 5% on supply of e-books for which print version exist
Exemptions in Pension, Social Security and Old Age Support
- Exempt services provided by Coal Mines Provident Fund Organisation to PF subscribers
- Exempt supply of services by old age home run by State or Central Govt. or by body registered
- Exempt GST on administrative fee collected by National Pension System Trust.
- Exempt services provided by unincorporated body or non-profit entity engaged in activities relating to welfare of industrial or agricultural labour or farmer
Exemptions in Banking⟋Finance⟋Insurance
- Exempt Reinsurance Services provided to specified Insurance Schemes like Pradhan Mantri Rashtriya Swasthya Suraksha Mission (Ayushman Bharat)
Exemptions in Government Services
- Exempt services provided by Govt. to ERCC by way of assigning right to collect royalty from mining lease holders.
Key Takeaways on GST Rate Cuts in July 2018
- GST rates are brought down to Nil on Sanitary Napkins & Rakhi
- GST Council recommends for allowing refund to fabrics on account of inverted duty structure
- GST Rates are changed in respect of footwear
- Rates are reduced for handloom items
- Now, only 35 items are left in 28% tax slab
- Council brought down GST rates to 18% from 28% on 15 items including vacuum cleaners, washing machine, 68 cm (27 inch) TV, fridge, laundry machines, paints & varnishes.
✍Examrace Team at Aug 27, 2021