On 21st July, 2018, the 28th GST Council meeting was conducted to take major decisions pertaining to the existing GST model.Following Rate changes have been recommended and will be notified on 27th July, 2018.


Reduction in GST Rates from 28% to 18%

As per the 28th GST Council recommendations, the rate of the following goods were reduced from 28% to 18%:

Paints and varnishes, including enamels and lacquers

Glaziers putty, grafting putty, resin cements

Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.

Washing machines

Lithium ion batteries

Vacuum cleaners

Domestic electrical appliances food grinders and mixers, food or vegetable juice extractors, shavers, hair clippers etc.

Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc.

Televisions up to the size of 68 cm

Special purpose motor vehicles crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries

Works trucks which are self-propelled, not fitted with lifting or handling equipment which are used in factories, warehouses, dock areas or airports for short transport of goods

Trailers and semi-trailers

Miscellaneous articles such as scent sprays and similar toilet sprays, powder puffs and pads for the application of cosmetics or toilet preparations

Reduction in GST Rates from 28% to 12%

As per the 28th GST Council updates, the GST rate for fuel cell vehicles was reduced from 28% to 12%. In addition, the 28th GST Council also decided to remove the previously applicable compensation cess on fuel cell vehicles.

Reduction in GST Rates from 18% to 12%

As per the 28th GST Council meeting updates, the GST rates of the following goods was decided to be reduced from 18% to 12%:

Bamboo flooring

Brass kerosene pressure stove

Hand operated rubber roller

Zip and slide fasteners

Handbags including pouches and purses, jewellery box

Wooden frames for painting, photographs, mirrors etc.

Art ware of cork, including articles of sholapith

Stone art ware, stone inlay work

Ornamental framed mirrors

Glass statues, other than those of crystal

Glass art ware including pots, jars, votive, cask, cake cover, tulip bottle, vase

Art ware of iron

Art ware of brass, copper / copper alloys, electro plated with nickel / silver

Aluminium art ware

Handcrafted lamps including panchloga lamp

Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes, including articles of lac, shellac

Ganjifa card

Reduction in GST Rates from 18% to 5%

As per the 28th GST Council meeting highlights, the GST rates of the following goods were reduced from 18% to 5%:

Ethanol for sale to oil marketing companies for blending with fuel

Solid bio fuel pellets

Reduction in GST Rates from 12% to 5%

As per the 28th GST Council meeting news, the GST rates of the following goods was reduced from 12% to 5%:

Chenille fabrics and other fabrics

Handloom dari

Phosphoric acid fertilizer grade only

Knitted cap / topi having retail sale value not exceeding INR 1000

Handmade carpets and other handmade textile floor coverings, including namda / gabba

Handmade lace

Hand woven tapestries

Hand-made braids and ornamental trimming in the piece

Toran

Reduction in GST Rates to 0%

This was probably the most lauded section of the 28th GST Council changes. At the 28th GST Council meeting, the GST rate for the following goods were culled down to 0%:

Stone / Marble / Wood Deities

Rakhi (other than that of precious or semi-precious material)

Sanitary Napkins

Coir pith compost

Sal Leaves, siali leaves and their products

Sabai Rope

Phool Bhari Jhadoo which is a raw material for brooms

Khali dona

Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd to the Ministry of Finance

Clarifications in GST Rates For specific goods

Apart from GST rate reductions, certain clarifications with regards to GST rates of certain goods also formed part of the 28th GST Council highlights.

Fabrics

Fabrics attract GST at the rate of 5%, but it was subject to the condition, that refund of accumulated ITC because of inverted duty structure will not be allowed. However, considering the difficulties faced by the fabric sector, it was decided in the 28th GST Council meeting, that the refund will henceforth be allowed and the same will be applicable on all purchases post the notification is issued.

Footwear

A GST rate of 5%, which was earlier applicable to footwear priced up to INR 500, will now be extended to footwear priced up to INR 1000. Footwear having a retail sale price of more than INR 1000, will continue to attract 18% GST.

Other Clarifications

Milk enriched with vitamins or minerals salt (fortified milk) will be exempt from GST

Water supplied for public purposes (other than in sealed containers) will be exempt from GST

5% GST will be charged on Pool Issue Price (PIP) of Urea imported on government accounts for direct agriculture use, instead of assessable value plus custom duty

5% GST will be charged on both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder

5% GST will be charged on beet and cane sugar, including refined beet and cane sugar

5% GST will be charged on marine engines

5% GST will be charged on unpolished kota stone and similar stones (other than marble and granite)

18% GST will be charged on ready to use polished kota stone and similar stones (other than marble and granite)

Coal rejects from washery, arising out of cess paid coal on which ITC has not been taken, will be exempt from GST compensation cess

Post these changes, the most important 28th GST Council news doing the rounds is, that only 35 goods now remain in the highest tax bracket i.e. 28% a huge relief for household consumers.