GST: The pruned list

11 Nov 2017


The GST Council at its meeting in Guwahati on Friday recommended major relief in tax rates on goods and services spread across sectors and across commodities, pruning the list of 28 per cent GST rated goods substantially from 224 tariff headings to only 50 tariff headings, including 4 headings which have been partially reduced to 18 per cent.

The rates on a number of goods have been reduced, so as to rationalise the rate structure with a view to minimise classification disputes as also address the grievances of trade on issues relating to GST rates and taxability of certain goods and services, the Council said.

The Council also recommended issuance of certain clarifications to address the grievance of trade on issues.

On the services side also, the Council recommended changes in GST rates to provide relief to aviation and handicraft sectors and restaurants. 

Goods on which GST rate has been reduced from 28 per cent to 18 per cent include:

  • 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 plywood. articles of wood, wooden frame, paving block, furniture, mattress, bedding and similar furnishings;
  • Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases;
  • Detergents, washing and cleaning preparations, liquid or cream for washing skin, shampoos, hair cream, hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste (not mixed with any other ingredients), pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers, perfumes and toilet waters, beauty or make-up preparations;
  • Fans, pumps, compressors, lamp and light fittings, primary cell and primary batteries, sanitary ware and parts thereof of all kind;
  • Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic;
  • Slabs of marbles and granite, goods of marble and granite such as tiles, ceramic tiles of all kinds;
  • Miscellaneous articles such as vacuum flasks, lighters;
  • Wrist watches, clocks, watch movement, watch cases, straps, parts;
  • Article of apparel and 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;
  • Door, 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;
  • Bulldozers, 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 ad 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;
  • Goggles, binoculars, telescope;
  • Cinematographic cameras and projectors, image projector;
  • Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology; and
  • Solvent, thinners, hydraulic fluids, anti-freezing preparation.

Goods on which GST rate has been reduced from 28 per cent to 12 per cent are:

  • Wet grinders consisting of stone as grinder;
  • Tanks and other armoured fighting vehicles;

Other items where GST rates have been reduced from 18 per cent to 12 per cent

These include: 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; handbags 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 whose rates have been reduced from 18 per cent to 5 per cent

These include: puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta and 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 per cent or more fly ash content

Items whose rates have been reduced from 12 per cent to 5 per cent

These include: 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 were tax slab of 5 per cent has been brought to nil.

These include: guar meal; hop cone (other than grounded, powdered or in pellet form); certain dried vegetables such as sweet potatoes, maniac; unworked coconut shell; Frozen or dried fish (not put up in unit container bearing a brand name);           khandsari sugar.

GST rates on aircraft engines, tyres nd seats have been brought down from 28/18 per cent to 5 per cent.

GST rate on bangles of lac/shellac havew been reduced from 3 per cent GST rate to nil.

Exemption from IGST/GST in certain specified cases:

Imports of lifesaving medicine supplied free of cost by overseas supplier for patients will get exemption from IGST, subject to certification by DGHS of centre or state and certain other conditions.

Exemption from IGST will be granted on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount.

IGST exemption currently applicable to skimmed milk powder or concentrated milk may be made applicable when supplied to distinct person under section 25(4) for use in production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act.

Exemption from IGST on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions

GST exemption will be granted on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IITs or NIT.

Items that are temporarily imported such as professional equipment by accredited press persons visiting India to cover certain events, broadcasting equipments, sports items, testing equipment, under ATA carnet system and as such are to be re-exported after the specified use is over will also get exemption.

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