Recommendations for Changes In GST/IGST Rate (25th Meeting on 18-01-2018)

Recommendations for Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods -As per discussions held in the 25th GST Council Meeting (18-01-2018)

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today. These decisions of the GST Council are being communicated for general information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.

1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
187Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
28702Buses, for use in public transport, which exclusively run on bio-fuels.

2. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
187All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.

3. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
11704Sugar boiled confectionary
22201Drinking water packed in 20 litters bottles
32809Fertilizer grade Phosphoric acid
429 or 38Bio-diesel
538The following Bio-pesticides, –

S. No. Name of the bio pesticide
1 Bacillus thuringiensis var. israelensis
2 Bacillus thuringiensis var. kurstaki
3 Bacillus thuringiensis var. galleriae
4 Bacillus sphaericus
5 Trichoderma viride
6 Trichoderma harzianum
7 Pseudomonas fluoresens
8 Beauveriabassiana
9 NPV of Helicoverpaarmigera
10 NPV of Spodopteralitura
11 Neem based pesticides
12 Cymbopogan

64418Bamboo wood building joinery
78424Drip irrigation system including laterals, sprinklers
88424Mechanical Sprayer

D. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
113Tamarind Kernel Powder
21404/3305Mehendi paste in cones
32711LPG supplied for supply to household domestic consumers by private LPG distributors
488 or any other chapterScientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads

E. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
14601, 4602Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork

F. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
15601 22 00Cigarette filter rods

G. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO REFUND OF UNUTILISED INPUT TAX CREDIT:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
15801 37 20Velvet fabric

H. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
17102Diamonds and precious stones
  1. NIL GST RATE:
  1. Vibhuti
  2. Parts and accessories for manufacture of hearing aids.
  3. De-oiled rice bran

J. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
12302Rice bran (other than de-oiled rice bran)

K. CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescriptionPresent Compensation Cess RateCompensation Cess Rate Recommended
18702Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions.15%Nil
287Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.Applicable rateNil
387All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.Applicable rateNil

L. CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescriptionPresent IGST RateIGST Rate Recommended
188or any other chapterSatellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads18%5%

M. MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescriptionPresent GST RateModification/clarification Recommended
127Poly Butylene Feed Stock & Liquefied Petroleum Gas18%The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.
2Any chapterRail coach industryApplicable GST rateOnly the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways.
32701Coal rejects5% + ₹ 400 PMT Compensation CessCoal rejects fall under heading 2701 and attract 5% GST and ₹ 400 PMT Compensation Cess

It is proposed to issue notification giving effect to the recommendations of the Council on 25th January, 2018 to be effective from 00 HRS on 25th January, 2018

 

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