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.

Table contain shows GST Rates Reduction
GST Rates Reduction
28% to 18%28% to 12%18% , 12% , 5% to Nil12% to 5%18% to 12%18% to 5%
Paints & varnishesFuel Cell VehicleStone⟋Marble⟋Wood DeitiesChenille fabricsBamboo flooringEthanol for sale to Oil Marketing Companies
Glaziers putty, grafting putty, resin cementsRakhiHandloom dariBrass Kerosene Pressure StoveSolid bio fuel pellets
Refrigerators, water coolerSanitary NapkinsPhosphoric acidHand Operated Rubber Roller
Washing machinesCoir pith compostKnitted capZip & Slide Fasteners
Lithium-ion batteriesSal Leaves siali leaves & their products
Vacuum cleanersRaw material for Jhadoo
Domestic electrical appliancesKhali dona
Storage water heaters, hair dryers, hand dryersCirculation & 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

Table contain shows GST Rate Change on Specified Handicraft Items
18% to 12% 12% to 5%
Handbags including pouches & purses; jewellery boxHandmade carpets & other handmade textile floor coverings
Wooden frames for painting, photographsHandmade lace
Art ware of corkHand-made braids & ornamental trimming
Stone art wareHand-woven tapestries
Ornamental framed mirrorsToran
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