On Sunday, 11th June, 2017 the GST council has revised  tax rates on 69 products keeping in mind the representation and also the utilization in credits for those items and widened the scope of a concessional tax payment scheme for small businesses and restaurants. GST Council has reduced tax rates of 66 items as against representations received for 133 items.

“Finance minister Arun Jaitley said.” The objective (of earlier rates) was to maintain equivalence to the existing taxes, and in some other cases the fitment had breached this equivalence principle. In others, the reduction is required because of the changing nature of the economy and changes that have occurred in consumer preference.

Finance minister Arun Jaitley said the council went an extra mile to lower the tax burden on many of these items even below the level of tax burden on them currently, taking into account changing consumption patterns and economic realities. The tax burden on some of these items was historically high, he said.

The weighted average of the  newly decided  rates are significantly lower than what is paid today. The new rates will give relief to many different social makeups.

Under the revised  GST rates, the household items as  packaged food items like pickles, ketchup, toppings are reduced from 18 to 12 percent GST.

The welcoming news for parents is that the rates on Schoolbags, colouring books, notebooks,printers are reduced from their earlier decided rates.

Diabetic patients have a good news as insulin will be cheaper. It will be taxed at 5% rate as reduced from 12% rate.

Other commodities like cutlery, tractor tyres, aggarbattis, kajal, aluminium foil, forks, cameras, recorders are reduced from taxing to the  earlier rates.

The issue of entertainment tax that has been flagged by superstars like Kamal Hassan was also taken up and a compromise formula arrived at. 

"As you know, entertainment tax currently is imposed by state governments. And the range is from 20 per cent to 110 per cent. The weighted average comes to about 30 per cent. But state governments also give exemptions to film in their own language," said Mr Jaitley and added, "So we have now made two categories for entertainment tax."

A film whose tickets are priced above Rs 100 will attract 28 per cent while those film with tickets priced at Rs 100 or below would be in the 18 per cent slab.

LIST OF REVISED GST RATE FOR CERTAIN GOODS:

S. No.

Description of Goods

Earlier GST Rate

Revised GST Rate

1.

Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc.

5%

0%

2.

Cashew nut

12%

5%

3.

Cashew nut in shell

12%

5%

4.

Raisin

12%

5%

5.

Cereal grains hulled

5%

0%

6.

Palmyra jaggery

18%

0%

7.

Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly

18%/12%

12%

8.

Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces

18%

12%

9.

Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings

28%

18%

10.

Bari made of pulses including mungodi

18%

12%

11.

Ice and snow

12%

5%

12.

Salt, all types

5%

0%

13.

Bio gas

12%

5%

14.

Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002

12%

0%

15.

Insulin

12%

5%

16.

(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.

Kajal [other than kajal pencil sticks]

28%

0%

18.

Kajal pencil sticks

28%

18%

19.

Agarbatti

12%

5%

20.

Dental wax

28%

18%

21.

All diagnostic kits and reagents

18%

12%

22.

Plastic beads

28%

12%

23.

Plastic Tarpaulin

28%

18%

24.

(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.

Exercise books and note books

18%

12%

26.

Kites

12%

5%

27.

Children’s' picture, drawing or colouring books

12%

0%

28.

Coir mats, matting and floor covering

12%

5%

29.

Headgear and parts thereof

28%

18%

30.

Human hair, dressed, thinned, bleached or otherwise worked

28%

0%

31.

Fly ash blocks

28%

12%

32.

Pre-cast Concrete Pipes

28%

18%

33.

Salt Glazed Stone Ware Pipes

28%

18%

34.

Glasses for corrective spectacles and flint buttons

18%

12%

35.

Rough precious and semi-precious stones

3%

0.25%

36.

Aluminium foil

28%

18%

37.

Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs

18%

12%

38.

All goods, including hooks and eyes

28%

18%

39.

Pawan Chakki that is Air Based Atta Chakki

28%

5%

40.

Fixed Speed Diesel Engines

28%

12%

41.

Rear Tractor tyres and rear tractor tyre tubes

28%

18%

42.

Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle

28%

18%

43.

Weighing Machinery [other than electric or electronic weighing machinery]

28%

18%

44.

Printers [other than multifunction printers]

28%

18%

45.

Ball bearing, Roller Bearings, Parts & related accessories

28%

18%

46.

Transformers Industrial Electronics

28%

18%

47.

Electrical Transformer

28%

18%

48.

Static Converters (UPS)

28%

18%

49.

Recorder

28%

18%

50.

CCTV

28%

18%

51.

Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc.

28%

12%

52.

Set top Box for TV

28%

18%

53.

Computer monitors not exceeding 17 inches

28%

18%

54.

Electrical Filaments or discharge lamps

28%

18%

55.

Winding Wires

28%

18%

56.

Coaxial cables

28%

18%

57.

Optical Fiber

28%

18%

58.

Perforating or stapling machines (staplers), pencil sharpening machines

28%

18%

59.

Baby carriages

28%

18%

60.

Intraocular lens

18%

12%

61.

Spectacles, corrective

18%

12%

62.

Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers)

28%

18%

63.

Bamboo Furniture

28%

18%

64.

Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines]

28%

12%

65.

Swimming pools and padding pools

28%

18%

66.

Muddhas made of sarkanda and phool bahari jhadoo

5%

0%

67.

Postage or revenue stamps, stamp-post marks, first-day covers, etc.

12%

5%

68.

Numismatic coins

12%

5%

69.

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

 _

5%

 

blog comments powered by Disqus