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 16th GST Council Meeting held on 11th 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 16th GST Council Meeting held on 11th 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.