On 18th January 2018, 25th GST meeting was held and the government brought down tax rates on 29 goods and 53 services, with its point of convergence on easing return filing processes.
Finance Minister Arun Jaitley stated that
The eminent economist predicts that these slashed rates might lead to revenue loss of 1,000 crores (156.6 million) to 1,200 crores. This rate change is the latest so far the government has made to the GST.
Take a look at the below mentioned finalised goods:
Contents
- 1 Recommendation for reduction from 28% to 18%
- 2 Recommendations for reduction from 18% to 12%
- 3 Recommendations for reduction from 18% to 5%
- 4 Recommendations for reduction from 12% to 5%
- 5 Recommendations for reduction from 12% to 18%
- 6 Recommendations for reduction from 12% to 5% (with no return of unutilized input tax credit)
- 7 Recommendations for reduction from 3% to 0.25%
- 8 NIL GST Rates
- 9 Recommendations for reduction from nil to 5%
Recommendation for reduction from 28% to 18%
- Old and used motor vehicles (medium and large cars and SUVs) on the margin of the supplier, subject to the condition that no input tax credit of central excise duty / value-added tax or GST paid on such vehicles has been availed by him
- Buses (for use in public transport) which runs on biofuels to be particular
Recommendations for reduction from 18% to 12%
- Sugar boiled confectionary
- Drinking bottles packed in 20 litres bottles
- Fertilizers grade Phosphoric acid
- Bio–diesel
- And the below mentioned Bio–pesticides
- Bacillus thuringiensis var. Israelensis
- Bacillus thuringiensis var. Kurstaki
- Bacillus thuringiensis var. Galleriae
- Bacillus sphaericus
- Trichoderma viride
- Trichoderma harzianum
- Pseudomonas fluoresens
- Beauveriabassiana
- NPV of Helicoverpaarmigera
- NPV of Spodopteralitura
- Neem based pesticides
- Cymbopogan
- Bamboo wood building joinery
- Drip irrigation system including laterals, sprinklers
- Mechanical Sprayer
Recommendations for reduction from 18% to 5%
- Tamarind Kernel Powder
- Mehendi Paste in cones
- LPG supplied for supply to households domestic consumers by private LPG distributors
- Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock-ups, and modules, raw materials and consumables required for launch vehicles and satellites and payloads
Recommendations for reduction from 12% to 5%
- Articles of straw of esparto or of other plaiting materials; basket – ware and wickerwork
Recommendations for reduction from 12% to 18%
- Cigarette filter rods
Recommendations for reduction from 12% to 5% (with no return of unutilized input tax credit)
- Velvet fabrics
Recommendations for reduction from 3% to 0.25%
- Diamond and precious stones
NIL GST Rates
- Vibhuti
- Parts and accessories for the manufacture of hearing aids
- De – oiled rice bran
Recommendations for reduction from nil to 5%
- Rice bran (other than de – oiled rice bran)
Finance Minister Arun Jaitley has also added that in the next meeting the council meeting will consider including new items in the rate deduction category which may include gasoline and real estate.
GST Rate Cut on Services
In services segment, government has decided to slash rates on the following addresses:
- Transportation of Crude
- Gasoil
- Gasoline
- Jet fuel
- Mining
- Exploration and drilling of oil and natural gas
Also note that theme park admission rates has also been decided to get a rate cut such as water park, joy rides, merry go rounds, go carting and ballet will now be taxed at 18% instead of 28%. Also the common effluent treatment plans services will get a cut from 18% to 12%.
He also added that they will consider simplifying the GST return filing process. The next meeting is expected to happen later on this month.