Home » Business » GST COUNCIL RECOMMENDS GST RATES REDUCTION ON SEVERAL GOODS &for specified handicraft items

GST COUNCIL RECOMMENDS GST RATES REDUCTION ON SEVERAL GOODS &for specified handicraft items

Newdelhi:22/7/18;The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs  took following decisions on GST Rate on Goods .

  1. GST rates reduction on 28% items:
  1. 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.
  • gst3

 

  1. 28% to 12%

 

  • Fuel Cell Vehicle. Further, Compensation cess shall also be exempted on fuel cell vehicle.

 

  1. 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,-

 

  1. 18%12%/5% to Nil:

 

  • Stone/Marble/Wood Deities
  • Rakhi [other than that of precious or semi-precious material of chapter 71]
  • Sanitary Napkins,
  • Coir pith compost
  • Sal Leaves siali leaves and their products and Sabai Rope
  • PhoolBhariJhadoo [Raw material for Jhadoo]
  • Khali dona.
  • Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.
  1. 12% to 5%:

 

  • Chenille fabrics and other fabrics under heading 5801
  • Handloom dari
  • Phosphoric acid (fertilizer grade only).
  • Knitted cap/topi having retail sale value not exceeding Rs 1000
  1. 18% to 12%:

 

  • Bamboo flooring
  • Brass Kerosene Pressure Stove.
  • Hand Operated Rubber Roller
  • Zip and Slide Fasteners
  • gst4

 

  1. 18% to 5%:
  • Ethanol for sale to Oil Marketing Companies for blending with fuel
  • Solid bio fuel pellets

 

  • IV. Rate change made in respect of footwear

 

  • 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair
  • Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%

 

  1. 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,-

 

  1. 18% to 12%:

 

  • Handbags including pouches and purses; jewellery box
  • Wooden frames for painting, photographs, mirrors etc
  • Art ware of cork [including articles of sholapith]
  • Stone art ware, stone inlay work
  • Ornamental framed mirrors
  • Glass statues [other than those of crystal]
  • Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]
  • Art ware of iron
  • Art ware of brass, copper/ copper alloys, electro plated with nickel/silver
  • Aluminium art ware
  • Handcrafted  lamps (including panchloga lamp)
  • 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)
  • Ganjifa card

 

  1. 12% to 5%:

 

  • Handmade carpets and other handmade textile floor coverings (including namda/gabba)
  • Handmade lace
  • Hand-woven tapestries
  • Hand-made braids and ornamental trimming in the piece
  • Toran
  • gst

 

  1. Miscellaneous Change relating to valuation of a supply:

 

  • IGST @5% on Pool Issue Price (PIP) of Urea imported on Govt. account for direct agriculture use, instead of assessable value plus custom duty.
  • Exemption from Compensation cess to Coal rejects from washery [arising out of cess paid coal on which ITC has not been taken].

 

  1. Clarifications/amendments as regards applicability of GST rate in respect of certain goods recommended by GST Council which inter-alia includes:

 

  1. Milk enriched with vitamins or minerals salt (fortified milk) is classifiable under HS code 0401 as milk and exempt from GST.
  2. 5% GST on both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.
  3. Beet and cane sugar, including refined beet and cane sugar, (falling under heading 1701) attracts 5% GST rate.
  4. Water supplied for public purposes (other than in sealed containers) does not attract GST.
  5. Marine engine (falling under sub-heading 8408 10 93) attracts 5% GST rate.
  6. 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%.
  7. Certain other miscellaneous clarification as regards classification/rate have been recommended

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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