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GST Council eases rules, cuts rates: Check out the new tax rates for about 42 items in 3 tables

Facing severe criticism over the implementation of goods and services tax, the government on Friday announced a slew of measures to ease the concerns of traders, exporters and small business.

Representational image. Reuters

Representational image. Reuters

The GST Council meeting also slashed rates on 27 items of common consumption, including roti, khakra, namkeens, stationery and man-made yarn -- with most of them brought to five percent category.

Tax rate on man made yarn was reduced to 12 percent from the current 18 percent, which is expected to provide relief to the textile industry.

Moreover, tax rate on unbranded namkeen, unbranded ayurvedic medicine, e-waste, paper waste, rubber waste, plastic waste was reduced to 5 percent.

The tax rate on services, including government contracts involving large labour, job work services in relation to imitation jewellery, some food and food products has been reduced from 12 percent to 5 percent.

These decisions were taken at the 22nd meeting of GST Council.

Below are three tables showing the new rates for about 42 items:

GST RATE FOR FOLLOWING GOODS HAVE BEEN REDUCED
S. No. Chapter/Heading/Sub-heading/Tariff item Description Present GST Rate GST Rate Recommended by the GST Council
1. 804 Mangoes sliced dried 12% 5%
2. 1905 or 2106 Khakra and plain chapati / roti 12% 5%
3. 19 or 21 Food preparations put up in unitcontainers and intended for free distribution to economically weakersections of the society under aprogramme duly approved by the Central Government or any State Government, subject to specified conditions [Foot note 1] 18% 5 %
4. 21 Namkeens other than those put up in unit container and, - (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily [Foot note 2] 12% 5%
5. 2710 Imposing GST only on the net quantity of superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB] 18% 18% [Clarification to be issued]
6. 30 Ayurvedic, Unani, Siddha, Homeopathy medicines, other than those bearing a brand name [Foot note 3] 12% 5%
7. 3213 Poster Colour 28% 18%
8. 3407 Modelling paste for children amusement 28% 18%
9. 3915 Plastic waste, parings or scrap 18% 5%
10. 4004 00 00 Rubber  waste, parings or scrap 18% 5%
11. 4017 00 20 Hard Rubber waste or scrap 28% 5%
12. 4707 Paper waste or scrap 12% 5%
13. 4907 Duty credit scrips 5% Nil
14. 5401 Sewing thread of manmade filaments, whether or not put up for retail sale 18% 12%
15. 5402, 5404, 5406 All synthetic filament yarn, such as nylon, polyester, acrylic, etc. 18% 12%
16. 5403, 5405, 5406 All artificial filament yarn, such as viscose rayon, Cuprammonium, 18% 12%
17. 5508 Sewing thread of manmade staple fibres 18% 12%
18. 5509, 5510, 5511 Yarn of manmade staple fibres 18% 12%
19. 5605 Real Zari 12% 5%
20. 6802 All goods falling under heading 6802 [other than those of marble and granite or those which attract 12% GST] 28% 18%
21. 7001 Cullet or other waste or scrap of Glass 18% 5%
22. 8305 Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal 28% 18%
23. 8483 Plain Shaft Bearing 8483 28% 18%
24. 84 Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP 28% 18%
25. 84 or 85 Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps 28% 18%
26. 84 or 85 E-Waste 28%/18% 5%
27. Any Chapter Biomass briquettes 18% 5%

Foot note;
1. Reduction in GST rate against S. No 4 above is subject to following condition:

a) If the supplier of such food preparations produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or not below the rank of the Deputy Secretary to the State Government concerned to the effect that such food preparations have been distributed free to the economically weaker sections of the society under a programme duly approved by the Central Government or the State Government concerned, within five months from the date of supply of such goods or within such further period as the jurisdictional Commissioner of Central tax or jurisdictional Commissioner of State tax, as the case maybe, may allow in this regard.

2. For S. No.5 above, the phrase registered brand name means:

a) A brand registered as on 15.05.2017 shall be deemed to be a registered brand for the purposes of levy of 5% GST, irrespective of whether or not such brand is subsequently deregistered.

b) A brand registered as on 15.05.2017 under the Copyright Act, 1957 shall also be treated as a registered brand for the purposes of levy of 5% GST.

c) A brand registered as on 15.05.2017 under any law for the time being in force in any other country shall also be deemed to be a registered brand for the purposes of levy of 5% GST.

3. For S. No. 7 above, the phrase “brand name” is defined as:
"brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person.

 IGST EXEMPTION ON IMPORTS OF GOODS:
S. No Description Present applicable IGST rate Recommended IGST rate
1 IGST exemption on imports of rigs imported for oil / gas exploration and production projects under lease, subject to the following conditions that:
(i)       Integrated tax leviable under section 5(1) of the IGST Act, 2017 on supply of service covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017;
(ii)     The rig is not sold without the prior permission of the Commissioner of Customs of the port of importation;
(iii)   to re-export the goods within 3 months from the expiry of the period for which they were supplied under a transaction covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017 out of India;
(iv)   to pay on demand an amount equal to the integrated tax payable on the said goods but for the exemption under this notification in the event of violation of any of the above conditions and applicable interest.
5% Nil
2 Exemption from IGST on imports of medicines supplied free by international agencies like UNICEF, WHO, Red Cross etc. 12%/5% Nil
3 A.    Exemption from IGST on imports of bona fide gifts upto CIF value limit of Rs. 5000 imported through post or air. 28% Nil

GST rates on job work services is being rationalised as follows:-

S.No Description of Service Rate
1 Job work services in relation to all products falling in Chapter 71 (including imitation jewellery) 5%
2 Job work services in relation to food and food products falling under Chapters 1 to 22 of the HS Code (except packing of processed milk into packets) 5%
3 Job work services in relation to products falling under Chapters 23 of the HS Code except dog and cat food put up for retail sale (CTH 23091000) 5%
4 Job work in relation to manufacture of umbrella 12%
5 Job work in relation to manufacture of clay bricks falling under CTH 69010010 5%
6 Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil [Heading 9988] 5%
7 Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 12% [Heading 9988] 12%
8 Services by way of printing on job work basis or on goods belonging to others in relation to printing of goods falling under Chapter 48 or 49, other than those covered by (6) and (7) above, [Heading 9988] 18%
9 Services by way of printing in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer [(Heading 9989)] 12%
10 Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @12%, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer 12%
11 Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @18% or above, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer 18%
12 To issue a clarification with regard to classification of printing products/services.

 

Data contribution by Kishor Kadam

(With inputs from IANS)


Published Date: Oct 07, 2017 12:11 PM | Updated Date: Oct 07, 2017 12:26 PM

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