23rd GST Council Meeting

23rd GST Council Meeting – GST Rate Changes for Goods

In 23rd GST Council Meeting. GST rate reduced for various goods and services mainly for 28% slab rate. The GST rates changes will tremendously reduce the tax burden on the common man and boost the economy.In this article, we look at a summary of GST rate changes announced in the 23rd GST Council Meeting held on 10th November 2017.

GST Rate Reduced from 28% to 18%

For the following goods, GST rate has been reduced from 28% to 18%. After the proposed change, GST @ 28% rate applicable only on 50 items. Majority of the items for which GST rate was reduced from 28% to 18% are building materials, personal care items and equipments.

Building Materials

• Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors.
• Electrical boards, panels, consoles, cabinets etc for electric control or distribution.
• Particle/fibre boards and ply wood.
• Article of wood, wooden frame, paving block.
• 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 granite
• Goods of marble and granite such as tiles
• Ceramic tiles of all kinds
• Fans, pumps, compressors
• Lamp and light fitting
• Door, windows and frames of aluminium.
• Articles of plaster such as board, sheet
• Articles of cement or concrete or stone and artificial stone
• Articles of asphalt or slate
• Articles of mica
• Ceramic flooring blocks, pipes, conduit, pipe fitting Wall paper and wall covering
• Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware

Furniture and Home Decorations

• Furniture, mattress, bedding and similar furnishing
• Miscellaneous articles such as vacuum flasks, lighters
• Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases
• Articles of cutlery, stoves, cookers and similar non electric domestic appliances
• All musical instruments and their parts
• Artificial flowers, foliage and artificial fruits
• Office or desk equipment
• Fire extinguishers and fire extinguishing charge
• Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment

Personal Care Items

• 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
• Razor and razor blades

Electronic & Office Stationeries

• Primary cell and primary batteries
• Multi-functional printers, cartridges
• Electrical, electronic weighing machinery
• Electrical apparatus for radio and television broadcasting
• Sound recording or reproducing apparatus
• Signalling, safety or traffic control equipment for transports
• Goggles, binoculars, telescope
• Cinematographic cameras and projectors, image projector
• Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology

Clothing & Personal Items

• Wrist watches, clocks, watch movement, watch cases, straps, parts
• Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal

Equipment, Firework & Industrial Items

• 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
• Explosive, anti-knocking preparation, fireworks
• Rubber tubes and miscellaneous articles of rubber
• Solvent, thinners, hydraulic fluids, anti-freezing preparation

Food and Food Preparations

• Cocoa butter, fat, oil powder,
• Extract, essence ad concentrates of coffee, miscellaneous food preparations
• Chocolates, Chewing gum / bubble gum
• Malt extract and food preparations of flour, groats, meal, starch or malt extract
• Waffles and wafers coated with chocolate or containing chocolate

GST Rate Reduced from 28% to 12%

For the following goods, GST rate has been reduced from 28% to 12%:

• Wet grinders consisting of stone as grinder
• Tanks and other armoured fighting vehicles

GST Rate Reduced from 18% to 12%

For the following goods, GST rate has been reduced from 18% to 12%:

• Condensed milk
• Refined sugar and sugar cubes
• Pasta
• Curry paste, mayonnaise and salad dressings, mixed condiments and mixei seasoning
• Diabetic food
• Medicinal grade oxygen
• Printing ink
• Hand bags and shopping bags of jute and cotton
• Hats (knitted or crocheted)
• Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
• Specified parts of sewing machine
• Spectacles frames
• Furniture wholly made of bamboo or cane

GST Rate Reduced from 18% to 5%

For the following goods, GST rate has been reduced from 18% to 5%:

• Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
• Flour of potatoes packed in unit container of a brand name
• Chutney powder
• Fly ash
• Sulphur recovered in refining of crude
• Fly ash aggregate with 90% or more fly ash content

GST Rate Reduced from 12% to 5%

For the following goods, GST rate has been reduced from 12% to 5%:

• Dry coconut
• Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]
• Idli, dosa batter
• Finished leather, chamois and composition leather
• Coir cordage and ropes, jute twine, coir products
• Fishing net and fishing hooks
• Worn clothing
• Fly ash brick

GST Rate Reduced from 5% to 0%

For the following goods, GST rate has been reduced from 5% to 0%:

• Guar meal
• Hop cone (other than grounded, powdered or in pellet form)
• Certain dried vegetables such as sweet potatoes, maniac
• Unworked coconut shell
• Fish frozen or dried (not packed in unit container of a brand name)
• Khandsari sugar

GST Rate Changes for Other Goods

GST rates on aircraft engines has been changed from 28% or 18% to 5%. Also the GST rate for aircraft tyres has been changed from 28% to 5% and aircraft seats from 28% to 5%.

The GST rate on bangles of lac/shellac has also been changed from 3% GST rate to Nil.

GST Exemption for Goods Announced in the 23rd GST Council Meeting

• IGST is now not applicable on imports of lifesaving medicine supplied free of cost by overseas supplier for patients, subject to certification by DGHS of Centre or State and certain other conditions .
• IGST is now not applicable on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount.
• IGST will not be applicable on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions.
• GST will not be applicable on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IlTs or NIT.

To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to distinct person under section 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.

More professional items can now be imported on temporary basis without GST  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.

Clarification of GST Rate

In addition to the above GST rate changes and exemptions, the GST Council also announced certain clarification to improve ease of doing business in India as follows:

Inter-State Transfer of Equipment

Inter-state movement of goods like rigs, tools, spares and goods on wheel like cranes, not being in the course of furtherance of supply of such goods, does not constitute a supply. This clarification gives major compliance relief to industry as there are frequent inter-state movement of such kind in the course of providing services to customers or for the purposes of getting such goods repaired or refurbished or for any self-use. Service provided using such goods would in any case attract applicable tax.

Raw Cotton Purchase

GST on supply of raw cotton by agriculturist will be liable for GST, which is to be paid by the recipient of such supply under reverse charge.

Supply of E-Waste Products

Supply of e-waste attracts 5% GST rate. Concerned notification to be amended to make it amply clear that this rate applies only to e-waste discarded as waste by the consumer or bulk consumer.