Recommendations Made by the GST
Council in its 28th Meeting at New Delhi on 21 July, 2018
·
GST Rates Reduction On Several Goods and for Specified
Handicraft Items
·
GST rates have been recommended to be brought down
to Nil on Sanitary Napkins, Rakhi and more Goods
·
Recommends for Allowing Refund to Fabrics on Account
of Inverted Duty Structure
·
Rate Change Made in Respect of Footwear
[PIB (MoF) Press Release
dated 21 July 2018]
The GST Council in its 28th meeting held on 21 July
2018 under the Chairmanship of Piyush Goyal , Union
Minister for Railways , Coal , Finance & Corporate Affairs took following decisions on GST Rate on Goods
.
I. GST rates reduction on 28% items:
A. 28% to 18%
·
Paints and varnishes (including
enamels and lacquers)
·
Glaziers’ putty, grafting
putty, resin cements
·
Refrigerators, freezers
and other refrigerating or freezing equipment including water cooler, milk coolers,
refrigerating equipment for leather industry, ice cream freezer etc.
·
Washing machines.
·
Lithium-ion batteries
·
Vacuum cleaners
·
Domestic electrical appliances
such as food grinders and mixers & food or vegetable juice extractor, shaver,
hair clippers etc
·
Storage water heaters and
immersion heaters, hair dryers, hand dryers,
electric smoothing irons etc
·
Televisions upto the size of 68 cm
·
Special purpose motor vehicles.
e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries
·
Works trucks [self-propelled,
not fitted with lifting or handling equipment] of the type used in factories, warehouses,
dock areas or airports for short transport of goods.
·
Trailers and semi-trailers.
·
Miscellaneous articles
such as scent sprays and similar toilet sprays, powder-puffs and pads for the application
of cosmetics or toilet preparations.
B. 28% to 12%
·
Fuel Cell Vehicle. Further,
Compensation cess shall also be exempted on fuel cell
vehicle.
II Refund of accumulated credit on account of inverted
duty structure to fabric manufacturers:Fabrics attract GST at the rate of 5% subject to the condition that refund
of accumulated ITC on account of inversion will not be allowed. However, considering
the difficulty faced by the Fabric sector on account of this condition, the GST
Council has recommended for allowing refund to fabrics on account of inverted duty
structure. The refund of accumulated ITC shall be allowed only with the prospective
effect on the purchases made after the notification is issued.
III. GST
rates have been recommended to be brought down from,-
A. 18%12%/5% to Nil:
o
Stone/Marble/Wood Deities
o
Rakhi [other than that of precious or semi-precious material of chapter
71]
o
Sanitary Napkins,
o
Coir pith compost
o
Sal Leaves siali leaves and their products and Sabai
Rope
o
PhoolBhariJhadoo [Raw material for Jhadoo]
o
Khali dona.
o
Circulation and commemorative
coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to
Ministry of Finance.
B. 12% to 5%:
o
Chenille fabrics and other
fabrics under heading 5801
o
Handloom dari
o
Phosphoric acid (fertilizer
grade only).
o
Knitted cap/topi having retail sale value not exceeding Rs 1000
C. 18% to 12%:
o
Bamboo flooring
o
Brass Kerosene Pressure
Stove.
o
Hand Operated Rubber Roller
o
Zip and Slide Fasteners
D. 18% to 5%:
o
Ethanol for sale to Oil
Marketing Companies for blending with fuel
o
Solid bio fuel pellets
IV. Rate
change made in respect of footwear
o
5% GST is being extended
to footwear having a retail sale price up to Rs. 1000
per pair
o
Footwear having a retail
sale price exceeding Rs. 1000 per pair will continue to
attract 18%
V. GST rates have been recommended to be brought down for specified
handicraft items [as per the definition of handicraft, as approved by the GST council]
from,-
A. 18% to 12%:
o
Handbags including pouches
and purses; jewellery box
o
Wooden frames for painting,
photographs, mirrors etc
o
Art ware of cork [including
articles of sholapith]
o
Stone art ware, stone inlay
work
o
Ornamental framed mirrors
o
Glass statues [other than
those of crystal]
o
Glass art ware [ incl.
pots, jars, votive, cask, cake cover, tulip bottle, vase ]
o
Art ware of iron
o
Art ware of brass, copper/
copper alloys, electro plated with nickel/silver
o
Aluminium art ware
o
Handcrafted lamps (including panchloga
lamp)
o
Worked vegetable or mineral
carving, articles thereof, articles of wax, of stearin, of natural gums or natural
resins or of modelling pastes etc, (including articles
of lac, shellac)
o
Ganjifa card
B. 12% to 5%:
o
Handmade carpets and other
handmade textile floor coverings (including namda/gabba)
o
Handmade lace
o
Hand-woven tapestries
o
Hand-made braids and ornamental
trimming in the piece
o
Toran
VI. Miscellaneous Change relating to valuation of a supply:
o
IGST @5% on Pool Issue
Price (PIP) of Urea imported on Govt. account for direct agriculture use, instead
of assessable value plus custom duty.
o
Exemption from Compensation
cess to Coal rejects from washery
[arising out of cess paid coal on which ITC has not been
taken].
VII. Clarifications/amendments
as regards applicability of GST rate in respect of certain goods recommended by
GST Council which inter-alia includes:
v.
Milk enriched with vitamins
or minerals salt (fortified milk) is classifiable under HS code 0401 as milk and
exempt from GST.
v.
5% GST on both treated
(modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.
v.
Beet and cane sugar, including
refined beet and cane sugar, (falling under heading 1701) attracts 5% GST rate.
v.
Water supplied for public
purposes (other than in sealed containers) does not attract GST.
v.
Marine engine (falling
under sub-heading 8408 10 93) attracts 5% GST rate.
v.
Kota stone and similar
stones [ other than marble and granite] other than polished will attracts 5% GST,
while ready to use polished Kota stoneand similar stones
will attracts 18%.
v.
Certain other miscellaneous
clarification as regards classification/rate have been recommended
[This note presents the
decision of the GST Council in simple language for ease of understanding which would
be given effect to through Gazette notifications/circulars which shall have force
of law.]