GST Council Cuts Rate on 88 Items on 21 July 2018 (Download PDF)

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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.

Table contain shows GST Rates Reduction

Table contain shows GST Rates Reduction

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 Rs. 1000.

  • Footwear having retail sale price exceeding Rs. 1000 will attract 18 % GST.

GST Rate Change on Specified Handicraft Items

Table contain shows GST Rate Change on Specified Handicraft Items

Table contain shows 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.

- Published/Last Modified on: September 21, 2018

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