 "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. [caption id=“attachment_3834965” align=“alignleft” width=“380”]
Representational image. Reuters[/caption] 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 |
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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: |
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| S. No |
| 1 |
| 2 |
| 3 |
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)