GST Revised Rates and amendments
- GST Council on Friday(10th November,2017) moved 80 % of items in the top 28% bracket to lower rates.
- Only 50 products like tobacco products, aerated drinks and automobiles, will be in the top GST rate bracket of 28%
- When GST was rolled out on July 1, more than 250 items were in the highest tax bracket.
GST Council on Friday(10th November, 2017) in the biggest tax overhaul slashed tax rates on over 200 items, ranging from chewing gums to chocolates, coffee and custard powder to beauty products to wrist watches to provide relief to consumers and businesses, As many as 178 items of daily use were shifted from the top tax bracket of 28% to 18%, Finance Minister Arun Jaitley said after the 23rd GST Council meeting in Guwahati. After these changes, only 50 items will attract GST rate of 28%. Tax on two items was cut from 28% to 12% while on six items was reduced from 18% to 5%. On eight items, tax was reduced from 12% to 5% and on six items from 5% to Nil.
The GST Council pruned the list of items in the top 28% Goods and Service Tax (GST) slab to just 50 from current 228.
As per 23rd GST Council Meeting : Here are the new rates
- All restaurants will be levied GST at 5%, without input tax credit benefits. However five-star restaurants within starred- hotels with room rent above Rs. 7500/- will attract 18% and can still avail ITC benefits, the council said. Outdoor catering will attract 18% GST with input tax credit benefits.
- The top tax rate of 28% will now be levied on goods like pan masala, aerated water and beverages, cigar and cigarettes, tobacco products, cement, paints, perfumes, ACs, dish washing machine, washing machine, refrigerators, vaccum cleaners, cars and two-wheelers, aircraft and yachts.
GST : A GLIMPSE
Other items on which GST has been reduced :
GST on 13 items has been reduced to 12% from 18%
GST on two items have been brought into 12% GST slab from 28% bracket
Six items have been brought into 5% from 18% slab
GST on eight items has been cut to 5% from 18%
Tax rate on Six items has been lowered to zero from 5%
Tax on wet grinders and armoured vehicles was cut from 28% to 12%
Tax rates on six items was reduced from 18% to 5%, on 8 items from 12% to 5%and on six items from 5% to Nil.
SPECIFIC RATE AMENDMENTS :-
Items on which GST was cut from 28% to 18% :-
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 woood. Article of wood, wooden frame, paving block. Furniture, mattress, bedding and similar furnishing.
Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases
Detergents, washing and cleaning preparations.
Liquid or cream for washing the skin,
Shampoos. Haircream, hairdyes (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 deodoriser,
Perfumes and toilet waters,
Beauty or make-up preparations,
Fans, pumps, compressors,
Lamp and light fitting,
Primary cell and primary batteries,
Sanitary ware and parts thereof of all kind,
Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitaryware of plastic,
Slabs of marbles and granite,
Goods of marble and granite such as tiles,
Ceramic tiles of all kind,
Miscellaneous articles such as vaccum flasks, lighters,
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.
Articles of cutlery, stoves, cookers and similar non electric domestic appliances.
Razor and razor blades.
Multi-functional printers, cartridges.
Office or desk equipment.
Doors, 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
Electrical, electronic weighing machinery
Fire extinguishers and fire extinguishing charge
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
Electrical apparatus for radio and television broadcasting
Sound recording or reproducing apparatus
Signalling, safety or traffic control equipment for transports
Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment
All musical instruments and their parts
Artificial flowers, foliage and artificial fruits
Explosive, anti-knocking preparation, fireworks
Cocoa butter, fat, oil powder,
Extract, essence and 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
Rubber tubes and miscellaneous articles of rubber
Googles, binoculars, telescope,
Cinematographic cameras and projectors, image projector,
Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology
Solvent, thinners, hydraulic fluids, anti-freezing preparation
Items on which GST was cut from 28% to 12% :-
Wet grinders consisting of stone as grinder
Tanks and other armoured fighting vehicles
Items on which GST was cut from 18% to 12% :-
Condensed milk
Refined sugar and sugar cubes
Pasta
Curry paste, mayonnaise and salad dressings, mixed condiments and mixed 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
Items on which GST was cut from 18% to 5% :-
Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali,groundnut, sweets gatta, kuliya
Flour of potatoes put up in unit container bearing a brand name
Chutney powder
Fly ash
Sulphur recovered in refining of crude
Fly ash aggregate with 90% or more fly ash content
Items on which GST was cut from 12% to 5% :-
Desiccated 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
Items on which GST was cut from 5% to Nil :-
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 put up in unit container bearing a brand name)
Khandsari sugar
GST rates on aircraft engines was cut from 28%/ 18% to 5%, aircraft tyres from 28% to 5% and aircraft seats from 28% to 5%. Also GST rate on bangles of lac/ shellac from 3% GST rate to Nil.
The cut in tax will cost Rs. 20,000 crores in revenues annually. In a bid to ease compliance burden for traders and businesses, fine for late filing of returns be cut to Rs. 20/- per day from Rs. 200/- for nil liability tax filers, Revenue Secretary said.
The Council also made changes to the composition scheme.
The GST Council also decided that taxpayers with annual aggregate turnover upto Rs. 1.5 crores need to file GSTR-1 on quarterly basis, while taxpayers with a turnover of above Rs.1.5 crores need to file GSTR-1 on monthly basis.
REVAMP OF COMPOSITION SCHEME :
The Council also approved a revamp of the composition scheme to give relief to small and medium enterprises.
The threshold of the scheme will now be Rs. 2 crore, up from Rs. 1 crore, which was raised at the previous meeting. This will be a cap provided in the law, but the immediate increase would be to Rs. 1.5 crores.
Tax rate for those availing the composition scheme will now be 1% irrespective of whether they are traders or manufacturers.
Composition scheme for restaurants will remain with 5% rate. Nontaxable goods will not be counted towards payment of tax under the scheme. The scheme offers lower compliance and less paperwork.
Composition scheme has been opened up for the services sector, but it can be availed of only by those who provide services upto Rs. 5 lakhs.
Companies with turnover upto Rs. 1.5 crores have been allowed quarterly filing of returns. The simple form GSTR 3B has been extended till March 31, 2018.
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