Decisions in GST Council Meet of 11 June 2017 to GST Rates on Goods and Services

A.	GST Rate for 69 Goods Revised	1
B.	Services to – · Government, Job Work for Textiles, Diamond, Leather, Book Printing · Cinema Ticket below Rs. 100	3
C.	Composition Levy Threshold Raised to Rs. 75 lakhs from Rs. 50 lakhs	3
D.	IGST Exemption under GST · Customs · Interstate Movement of Mode of Conveyance Exempted from IGST	4

A. GST Rate for 69 Goods Revised

[As per discussions in the 16^th GST Council Meeting held on 11^th June, 2017]

SNo	Chapter / Heading/ Sub- heading/ Tariff item	Description of goods		Earlier GST rate approved by the GST Council	Revised GST Rate approved by the GST Council
1.	0506, 0507 90	Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc.	…	5%	0%
2.	0801	Cashew nut	…	12%	5%
3.	0801	Cashew nut in shell	…	12%	5% [under reverse charge]
4.	0806	Raisin	…	12%	5%
5.	1104	Cereal grains hulled	…	5%	0%
6.	1702	Palmyra jaggery	…	18%	0%
7.	20 [All goods]	Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly	…	18%/ 12%	12%
8.	2103, 2103 00, 2103 90 90	Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces	…	18%	12%
9.	2103 90 10, 2103 90 30, 2103 90 40	Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings	…	28%	18%
10.	2106	Bari made of pulses including mungodi	…	18%	12%
11.	2201 90 10	Ice and snow	…	12%	5%
12.	2501	Salt, all types	…	5%	0%
13.	27	Bio gas	…	12%	5%
14.	28	Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470: 2002	…	12%	0%
15.	30	Insulin	…	12%	5%
16.	29, 30, 3302	(i) Menthol and menthol crystals, (ii) Peppermint (Mentha Oil), (iii) Fractionated/ de-terpenated mentha oil (DTMO), (iv) De-mentholised oil (DMO), (v) Spearmint oil, (vi) Mentha piperita oil	…	18%	12%
17.	3304 20 00	Kajal [other than kajal pencil sticks]	…	28%	Nil
18.	3304 20 00	Kajal pencil sticks	…	28%	18%
19.	3307	Agarbatti	…	12%	5%
20.	3407	Dental wax	…	28%	18%
21.	3822	All diagnostic kits and reagents	…	18%	12%
22.	3926	Plastic beads	…	28%	12%
23.	3926 90 99	Plastic Tarpaulin	…	28%	18%
24.	4202	(i) School satchels and bags other than of leather or composition leather; (ii) Toilet cases [4202 12 10]; (iii) Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40]; (iv) Handbags of other materials excluding wicker work or basket work [4202 29 10].	…	28%	18%
25.	4820	Exercise books and note books	…	18%	12%
26.	4823	Kites	…	12%	5%
27.	4903	Children’s' picture, drawing or colouring books	…	12%	Nil
28.	57	Coir mats, matting and floor covering	…	12%	5%
29.	65 [All goods]	Headgear and parts thereof	…	28%	18%
30.	6703	Human hair, dressed, thinned, bleached or otherwise worked	…	28%	0%
31.	68	Fly ash blocks	…	28%	12%
32.	6810 11 90	Pre cast Concrete Pipes	…	28%	18%
33.	6906	Salt Glazed Stone Ware Pipes	…	28%	18%
34.	7015 10	Glasses for corrective spectacles and flint buttons	…	18%	12%
35.	71	Rough precious and semi-precious stones	…	3%	0.25%
36.	7607	Aluminium foil	…	28%	18%
37.	8215	Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs	…	18%	12%
38.	8308	All goods, including hooks and eyes	…	28%	18%
39.	84	Pawan Chakki that is Air Based Atta Chakki	…	28%	5%
40.	84	Fixed Speed Diesel Engines	…	28%	12%
41.	4011	Rear Tractor tyres and rear tractor tyre tubes	…	28%	18%
42.	8708	Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle	…	28%	18%
43.	8423 & 9016	Weighing Machinery [other than electric or electronic weighing machinery]	…	28%	18%
44.	8443	Printers [other than multifunction printers]	…	28%	18%
45.	8482	Ball bearing, Roller Bearings, Parts & related accessories	…	28%	18%
46.	8504	Transformers Industrial Electronics	…	28%	18%
47.	8504	Electrical Transformer	…	28%	18%
48.	8504	Static Convertors (UPS)	…	28%	18%
49.	8521	Recorder	…	28%	18%
50.	8525	CCTV	…	28%	18%
51.	8525 60	Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc.	…	28%	12%
52.	8528	Set top Box for TV	…	28%	18%
53.	8528	Computer monitors not exceeding 17 inches	…	28%	18%
54.	8539	Electrical Filaments or discharge lamps	…	28%	18%
55.	8544	Winding Wires	…	28%	18%
56.	8544	Coaxial cables	…	28%	18%
57.	8544 70	Optical Fiber	…	28%	18%
58.	8472	Perforating or stapling machines (staplers), pencil sharpening machines	…	28%	18%
59.	8715	Baby carriages	…	28%	18%
60.	9002	Intraocular lens	…	18%	12%
61.	9004	Spectacles, corrective	…	18%	12%
62.	9017	Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers)	…	28%	18%
63.	9403	Bamboo furniture	…	28%	18%
64.	9504	Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines]	…	28%	12%
65.	9506	Swimming pools and padding pools	…	28%	18%
66.	9603 10 00	Muddhas made of sarkanda and phool bahari jhadoo	…	5%	0%
67.	9704	Postage or revenue stamps, stamp-post marks, first-day covers, etc.	…	12%	5%
68.	9705	Numismatic coins	…	12%	5%
69.	4823 90 11, 8472, 9101, 9102, 9021	Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability [These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)]	…	-	5%

B. Services to – Government, Job Work for Textiles, Diamond, Leather, Book Printing

· Cinema Ticket below Rs. 100

1. In the list of service tax exemptions to be continued in GST as approved by the GST Council, after SNo.83, the following shall be inserted –

Sl. No.	Proposal/ request
84.	Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution
85.	Services provided to the Government under any insurance scheme for which total premium is paid by Government
86.	Services provided to the Government under any training programme for which total expenditure is borne by the Government

2. In the schedule of GST Rates for Services as approved by the GST Council, after S.No. 13, the following shall be inserted –

Sl. No.	Description of Services	GST Rate
13A	Services by way of job work in relation to – a) Textile yarns (other than man-made fibre/filament) & textile fabrics b) Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN c) Printing of books (including braille books), journals and periodicals d) Processing of leather	5% with Full ITC
27A	Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is Rs. 100 or less.	18% with Full ITC

3. Exemption from registration under section 23(2) of the CGST Act 2017 of –

1. Individual advocates (including senior advocates)

2. Individual sponsorship service providers (including players)

C. Composition Levy Threshold Raised to Rs. 75 lakhs from Rs. 50 lakhs

[As per discussions in the 16th GST Council Meeting held on 11th June, 2017]

Sub section (1) of section 10 read with sub-section (2) of the same section of the Central Goods and Services Tax Act, 2017 [CGST Act] provides that an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed Rs.50 lakh, may opt to pay, in lieu of the tax payable by him, an amount calculated at the rate of:

1. 1% of turnover in State or turnover in Union Territory in case of a manufacturer;

2. 2.5% of turnover in State or turnover in Union Territory in case of persons engaged in making supplies referred to in Paragraph 6(b) of Schedule II to the CGST Act; and

3. 0.5% of turnover in State or turnover in Union Territory in case of other suppliers.

2. The said sub-section also provides that the said limit may be increased upto Rs.1 crore on the recommendations of the GST Council.

3. The GST Council, in its meeting held on 11th June, 2017, has recommended increase in the aforesaid turnover limit for Composition Levy for CGST and SGST purposes from Rs.50 lakh to Rs.75 lakh in respect of all eligible registered persons, referred to in the aforesaid subsection. However, whether the same increased turnover limit for Composition levy will apply in case of Special Category States or not will be decided in the next GST Council meeting.

D. IGST Exemption under GST

· Customs

· Interstate Movement of Mode of Conveyance Exempted from IGST

[As per discussions in the 16^th GST Council Meeting held on 11^th June, 2017]

I. Bilateral Commitments – Imports under Agreement between India and Pakistan / Bangladesh for regulation of Bus Service

SNo.	Notification	Gist of the notification
1.	No.4/99-Customs, dated 08.01.1999	1. Passenger bus; and 2. Spares, fuel and consumables for the passenger bus imported under the Agreement between India and Pakistan for regulation of Bus Service between New Delhi and Lahore or under the Agreement between India and Bangladesh for regulation of Bus Service between Calcutta and Dhaka. These imports will be exempt from IGST.

II. Technical Exemptions for Temporary import/Re-Import

SNo.	Notification	Gist of the notification
1.	No.40/2015-Customs, dated 21.07.2015	Import of Diamonds for Certification / Grading & Re-export in terms of Para 4.42 of the FTP 2015-20, by the agencies mentioned in Para 4.42 of FTP, without payment of all Customs duties after executing bond with Customs. These imports will be exempt from IGST.
2.	No.9/2012-Customs, dated 09.03.2012	An exporter (with annual export turnover of Rs 5 crore for each of the last three years) may export cut & polished diamonds (each of 0.25 carat or above) to specified testing agencies/laboratories abroad [as mentioned under paragraph 4.74 of the Handbook of Procedures] for testing. On their re-import [within 3 months from the date of export] such cut and polished diamonds are exempt from customs duties [BCD, CVD and SAD]. These imports will be exempt from IGST.
3.	No exemption at present	Inter-state movement of any mode of conveyance between distinct persons as defined under section 25(4) of the Central Goods and Services Tax Act, 217, including i. Trains ii. Buses iii. Trucks iv. Tankers v. Trailers vi. Vessels vii. Containers a) Carrying goods or passengers or both; or b) For repairs and maintenance, [except in cases where such movement is for further supply of the same conveyance] shall be treated neither as a supply of goods or supply of service and therefore, not be leviable to IGST. However, applicable CGST/SGST/IGST, as the case may be, shall be leviable on repairs and maintenance done.