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GST Council cuts rate on 88 items, exempts Sanitary Napkins and Rakhis

Jul 23, 2018 11:13 IST
GST Council recommends GST Rates reduction on several goods & services

The GST Council in its 28th meeting on July 21, 2018, under the Chairmanship of Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs, reduced the Goods and Services Tax (GST) rates on various goods and rationalised the rates on various services.

GST Rates Reduction

28% to 18%

28% to 12%

18%, 12%, 5% to Nil

12% to 5%

18% to 12%

18% to 5%

Paints and 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 and Slide Fasteners

 

Lithium-ion batteries

 

Sal Leaves siali leaves and their products

 

 

 

Vacuum cleaners

 

Raw material for Jhadoo

 

 

 

Domestic electrical appliances

 

Khali dona

 

 

 

Storage water heaters, hair dryers,  hand dryers

 

Circulation and commemorative coins, sold by SPMCIL to Finance Ministry

 

 

 

Televisions up to the size of 68 cm

 

 

 

 

 

Crane lorries, fire fighting vehicle, concrete mixer lorries

 

 

 

 

 

Trailers and semi-trailers

 

 

 

 

 

GST Rates on Footwear

• 5 percent GST will be levied on footwear having a retail sale price of up to Rs 1000.
• Footwear having a retail sale price exceeding Rs 1000 will attract 18 percent GST.

GST rate change on specified handicraft items

18% to 12%

12% to 5%

Handbags including pouches and purses ; jewellery box

Handmade carpets and other handmade textile floor coverings

Wooden frames for painting, photographs

Handmade lace

Art ware of cork

Hand-made braids and 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

The GST Council also announced exemptions and changes in GST rates on various services in sectors like agriculture, education and social security.

Exemptions for Agriculture, farming and food processing industry

• Exempt services by way of artificial insemination of livestock
• Exempt warehousing of minor forest produce
• Exempt the works of installation and commissioning undertaken by DISCOMS for extending electricity distribution network to the 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 percent to 5 percent 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 the PF subscribers
• Exempt supply of services by an old age home run by State or Central Government or by a body registered
• Exempt GST on the administrative fee collected by National Pension System Trust.
• Exempt services provided by an unincorporated body or a non-profit entity engaged in activities relating to the welfare of industrial or agricultural labour or farmer

Exemptions in Banking/ Finance/ Insurance

• Exempt Reinsurance Services provided to specified Insurance Schemes such as Pradhan Mantri Rashtriya Swasthya Suraksha  Mission (Ayushman Bharat)

Exemptions in Government Services

• Exempt services provided by Government to ERCC by way of assigning the right to collect royalty from the mining lease holders.

Key Takeaways

  • GST rates have been brought down to Nil on Sanitary Napkins & Rakhi
  • GST Council recommends for allowing refund to fabrics on account of inverted duty structure
  • GST Rates have been changed in respect of footwear
  • Rates have been reduced for handloom items
  • GST exempted from various services in sectors like agriculture, education and social security
  • Now, only 35 items are left in the 28 percent tax slab
  • Council brought down GST rates to 18 percent from 28 percent on 15 items including vacuum cleaners, washing machine, 68 cm (27 inch) TV, fridge, laundry machines, paints and varnishes.
 

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