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.
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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 |
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| Art ware of brass, copper, nickel electro plated, aluminium |
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| Handcrafted lamps |
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| Articles of wax, stearin, natural gums or natural resins |
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| Ganjifa card |
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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.
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