List of GST Items Rate After The Recent Change

The Council meeting took a firm decision to decrease the rate on items like chocolates, detergent powder, soap shampoos, aftershave cream, odour deodorants, granite stones and marble from the existing 28 percent GST to 18 per-cent. Some more items getting taxed at eighteen per cent are washbasins, timber plywood, sanitary & building materials, wrist watches, fire-fighting devices & mattresses.

The percentage on fly ash, bricks and few sweets has been brought down to five per cent from eighteen percent.

Similarly, the GST rate on few more products has been reviewed; the GST on dried green vegetables has been decreased to zero.

Revenue Secretary Hasmukh Adhia told all these decisions will impact prospectively from 15.11.2017.

Composition scheme

In addition to, in a further relaxation to small & medium enterprises, which were challenging a big compliance burden below GST, the Council has confirmed to hike the limit for the compositon scheme to an yearly turnover of 1.5 crore. However, an rectification to the GST law will debut have to be qualified by Parliament.

A standard tax rate of one per-cent will be taxed below this scheme, which lets for quarterly filing of returns and remittance of taxes. Entitled producers with service workings with an annual turnover of up to five lakh will too be let in the scheme.

Restaurants

The Council of GST too decided a stern vision of restaurants or hotels that have not given the advantages of input tax credit to clients.

It has now fixed to make away with the distinction for Airconditioned and non-AC and tax a flat 5% tax with no input credit on every foods.

However, outdoor catering & restaurants in 5-star hotels will have 18% tax with input tax credit. The GST Council officials has also published extra simplification of the filing process of returns, and GSTR 3B is being remained till March 2018 for all taxpayers.

Revenue loss

The Council had review of the revenue trends under GST for the 1st 3 months. Jailtey told that more Integrated GST (valued at 90,000 crore) is blocked in transitional credit and it is very early to find a clear image of the tax collection trends.

However, the rate cuts will not be inexpensive and will cost over Rs.20,000 crore to the exchequer yearly, as per the Bihar Finance Minister Sushil Modi.

Meanwhile, WB Finance Minister Amit Mitra told that in the first 3 months, GST has progressed in a revenue loss of INR 60,000 cr. to the Centre and Rupees thirty thousand crore to the States.

The further meeting of the GST Council is likely to be conducted in early Jan 2018; during that meeting, pending issues like including real estate & electricity will be discussed.

Description Present GST Rate New GST Rate
Mangoes sliced dried 12% 5%
Khakra & plain chapati / roti 12% 5%
Packaged Food 18% 5%
Namkeens 12% 5%
Ayurvedic, Unani, Siddha, Homeopathy medicines 12% 5%
Poster Color 28% 18%
Modelling Paste for children amusement 28% 18%
Plastic Waste, Pairing & Scraps 18% 5%
Rubber Waste, Paring & Scrap 18% 5%
Hard Rubber Waste 28% 5%
Paper Waste & Scrap 12% 5%
Duty Credit scrips 5% Nil
Sewing thread of manmade filaments 18% 12%
All synthetic filament yarn, such as nylon, polyester, acrylic 18% 12%
All artificial filament yarn, such as viscose rayon, cuprammonium 18% 12%
Sewing thread for manmade staple fibres 18% 12%
Yarn of manmade staple fibres 18% 12%
Real Zari 12% 5%
Floor Tiles 28% 18%
Cullet or other waste of glass 18% 5%
Fittings for loose leaf binders, or files, letter clips, letter corners, paper clips, staple in strips, 28% 18%
Plain shaft bearing 8483 28% 18%
parts suitable for use solely or principally with fixed speed diesel engine of power not exceeding 15HP 28% 18%
parts for Pumps 28% 18%
E-waste 28% / 18% 5%
Biomass briquettes 18% 5%

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