GST Council Revises Rates For 29 Goods, 53 Services Categories
Rate Revision In Services Categories
List Of Services Where GST Rate Will Be Reduced To 12% From 18%
- Construction of metro and monorail projects
- Common effluent treatment plants
List Of Services Where GST Rate Will Be Reduced To 5% From 18%
List Of Services Where GST Rate Will Be Reduced To 18% From 28%
- Admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet
Works Contract Services Where GST Rate Will Be Reduced To 12% From 18%
- Works Contract Services provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%
- If WCS attracts 5% GST, their sub-contractor also be liable for 5% GST
Other Services Changes
- To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.
- To reduce job work services rate for manufacture of leather goods and footwear to 5%
- To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services
- To levy concessional GST at 12% on the services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of building used for providing (for instance, centralised cooking or distributing) mid-day meal scheme by an entity registered under Section 12AA of IT Act.
- Providing information under RTI Act, 2005.
- Legal services provided to government, local authority, governmental authority and government entity.
- Transportation of goods from India to a place outside India by air (Sunset clause up to September 30, 2018).
- Transportation of goods from India to a place outside India by sea (provided that value of such service may be excluded from the value of exempted services for the purpose of reversal of input tax credit) (Sunset clause up to Sept 30, 2018).
- Naval Insurance Group Fund's services by way of life insurance to personnel of Coast Guard under the group insurance scheme of the central government retrospectively w.e.f. July 1, 2017.
- Dollar denominated services provided by financial intermediaries located in International Financial Service Centre SEZ.
- Government or local authority by way of lease of land, and supply of land or undivided share of land by way of lease or sub lease where such supply is a part of specified composite supply of construction of flats etc. and to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the same effective rate of GST on property built on leasehold and freehold land.
- To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification.
- To exempt services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.
- To exempt reinsurance services in respect of some exempted insurance schemes.
- Fumigation in a warehouse of agricultural produce.
- Subscription of online educational journals/periodicals by educational institutions.
- Renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education up to higher secondary or equivalent.
- To exempt services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.
- To exempt government’s share of profit petroleum and to clarify that cost petroleum is not taxable per se.
- To exempt IGST payable under Section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of aggregate of the duties and taxes leviable under Section 3(7) of the Customs Tariff Act, 1975 read with Sections 5 & 7 of IGST Act, 2017 on part of consideration declared under Section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
- To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement of RCS airport from the present period of one year.
- To levy GST on the small housekeeping service providers, notified under Section 9 (5) of GST Act, who provide housekeeping service through ECO, at 5% without ITC.
- To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.
- To enhance the exemption limit of Rs 5,000 per month per member to Rs 7,500 in respect of services provided by Resident Welfare Association to its members against their individual contribution.
- To amend entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to government entity.
- To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. up to 25% of supply of goods.
- To enhance the limit to Rs 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of Rs 50,000.
The Full List Of Goods Where Rates Were Revised
List Of Goods Where GST Rate Will Be Reduced To 18% From 28%
- Buses for public transport, which run on bio-fuels
- Old & used motor vehicles (medium & large cars and SUVs) on the margin of the supplier
- Rate cut if no input tax credit of central excise duty/VAT/GST availed
List Of Goods Where GST Rate Will Be Reduced To 12% From 28%
- Old and used motor vehicles other than medium and large cars and SUVs
- Rate cut if no input tax credit of central excise duty/VAT/GST availed
List Of Goods Where GST Rate Will Be Reduced To 12% From 18%
- Sugar boiled confectionary
- Drinking water packed in 20 litre bottles
- Fertiliser grade phosphoric acid
- 12 categories of bio-pesticides
- Bamboo wood building joinery
- Drip irrigation system including laterals, sprinklers
- Mechanical Sprayer
List Of Goods Where GST Rate Will Be Reduced To 5% From 18%
- Tamarind kernel powder
- Mehendi paste in cones
- LPG supplied for supply to household domestic consumers by private LPG distributors
- 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 payloads
List Of Goods Where GST Rate Will Be Reduced To 5% From 12%
- Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork
List Of Goods Where GST Rate Will Be Reduced To 5% From 12% (With No Refund Of Unutilised Input Tax Credit)
- Velvet fabric
List Of Goods Where GST Rate Will Be Reduced To 0.25% From 3%
- Diamonds and precious stones
List Of Goods Where GST Rate Will Be Increased To 12% From 5%
- Cigarette filter rods
List Of Goods Where GST Rate Will Be Increased To 5% From Nil
- Rice bran (other than de-oiled rice bran)
Division Of iGST
Rs 35,000 crore of Integrated GST will be provisionally divided between the Centre and states, Jaitley said. The division of IGST credit will boost the indirect tax position of both the central and state governments, he added.
GST Council Revises Rates
The fitment committee will fix the rates for about 40 handicraft items; a few more items may be added to the list. The committee’s recommendations on 29 goods and 53 categories of services have been accepted by the GST Council, Jaitley said.
New rates for 29 goods and 53 services categories will come into force from Jan. 25, he added.
15 States To Start Intra-State E-Way Bill From February
The e-way bill system began on a trial basis on Jan. 15, Jaitley said.
Implementation of the inter-state e-way bill has been made mandatory from Feb 1. Fifteen states have informed the Council that they will start intra-state the e-way bill from the same month, he added.