Recommendations made On GST Rate changes by the GST Council as per discussions in its 23rd Meeting on 10th November, 2017 held at Guwahati
GST
Dated:- 10-11-2017
Recommendations made On GST Rate changes by the GST Council as per discussions in its 23rd Meeting on 10th November, 2017 held at Guwahati
a) In the meeting held today, that is 10th November, 2017, the Council has recommended major relief in GST rates on certain goods and services. These recommendations spread across many sectors and across commodities.
b) As per these recommendations, the list of 28% GST rated goods is recommended to be pruned substantially, from 224 tariff headings [about 18.5% of total tariff headings at 4-digit] to only 50 tariff headings including 4 headings which have been partially reduced to 18% [about 4% of total tariff headings at 4-digit].
c) Further, the Council has recommended changes in GST rates on a number of goods, so as to rationalise the rate structure with a view to mi
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ric control or distribution
* Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block
* Furniture, mattress, bedding and similar furnishing
* Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases
* Detergents, washing and cleaning preparations
* Liquid or cream for washing the skin
* Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;
* Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers
* Perfumes and toilet waters
* Beauty or make-up preparations
* Fans, pumps, compressors
* Lamp and light fitting
* Primary cell and primary batteries
* Sanitary ware and parts thereof of all kind
* Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic
* Slabs of marbles and gran
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uishers and fire extinguishing charge
* Fork lifts, lifting and handling equipment,
* Bull dozers, excavators, loaders, road rollers,
* Earth moving and levelling machinery,
* Escalators
* Cooling towers, pressure vessels, reactors
* Crankshaft for sewing machine, tailor's dummies, bearing housings, gears and gearing; ball or roller screws; gaskets
* Electrical apparatus for radio and television broadcasting
* Sound recording or reproducing apparatus
* Signalling, safety or traffic control equipment for transports
* Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment
* All musical instruments and their parts
* Artificial flowers, foliage and artificial fruits
* Explosive, anti-knocking preparation, fireworks
* Cocoa butter, fat, oil powder,
* Extract, essence ad concentrates of coffee, miscellaneous food preparations
* Chocolates, Chewing gum / bubble gum
* Malt extrac
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and shopping bags of jute and cotton
ix. Hats (knitted or crocheted)
x. Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
xi. Specified parts of sewing machine
xii. Spectacles frames
xiii. Furniture wholly made of bamboo or cane
b) 18% to 5%
i. Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
ii. Flour of potatoes put up in unit container bearing a brand name
iii. Chutney powder
iv. Fly ash
v. Sulphur recovered in refining of crude
vi. Fly ash aggregate with 90% or more fly ash content
c) 12% to 5%
i. Desiccated coconut
ii. Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]
iii. Idli, dosa batter
iv. Finished leather, chamois and composition leather
v. Coir cordage and ropes, jute twine, coir products
vi. Fishing net and fishing hooks
vii. Worn clothing
viii. Fly ash brick
d) 5% to nil
i. Guar m
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n 25(4) for use in production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act.
iv. Exemption from IGST on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions
v. Exemption from GST on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IITs or NIT.
vi. Coverage of more items, such as temporary import of professional equipment by accredited press persons visiting India to cover certain events, broadcasting equipments, sports items, testing equipment, under ATA carnet system. These goods are to be re-exported after the specified use is over.
(IV) Other changes for simplification and harmonisation or clarification of issues
i. To clarify that inter-state movement of goods like rigs, tools, spares and goods on wheel like cranes, not being
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els (or takeaways) will also attract 5% GST without ITC.
ii. Restaurants in hotel premises having room tariff of less than ₹ 7500 per unit per day will attract GST of 5% without ITC.
iii. Restaurants in hotel premises having room tariff of ₹ 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.
iv. Outdoor catering will continue to be at 18% with full ITC.
v. GST on services by way of admission to "protected monuments" to be exempted.
vi. GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit.
(B) Rationalization of certain exemption entries
i. The existing exemption entries with respect to services provided by Fair Price Shops to the Central Government, State Governments or Union Territories by way of sale of food grains, kerosene, sugar, edi
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tracts GST at the rate of 18%.
(C) Clarifications
i. It is being clarified that credit of GST paid on aircraft engines, parts & accessories will be available for discharging GST on inter-state supply of such aircraft engines, parts & accessories by way of inter-state stock transfers between distinct persons as specified in section 25 of the CGST Act.
ii. A Circular will be issued clarifying that processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits & cashew nuts etc. fall outside the definition of agricultural produce given in notification No. 11/2017-CT(R) and 12/2017-CT(R) and therefore the exemption from GST is not available to their loading, packing, warehousing etc.
iii. A suitable clarification will be issued that (i) services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is pai
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