23rd GST Council Meeting – Modification in GST Rate for Goods

23rd GST Council Meeting – Modification in GST Rate for Goods

In India when businesses engaged in the distribution of commodities or supplies services have a turnover beyond Rs 20 Lakhs, then those companies are required to complete registration under GST. However, in North-eastern states and states in hilly areas, the turnover is relaxed to Rs 10 Lakhs. However, in the 23rd GST Council Meeting, the modification in GST rate for various merchandise and services was announced. Primarily, the focal point of the 23rd GST Council Meeting was the decrease in GST rates for various goods scheduled under the 28% block. This alteration will remarkably diminish the tax encumbrance on the ordinary man and enhance the economy.

GST Rate Changes

GST Rate changes-

1. For manufacturers and traders as per composition scheme, the rate is set at 1 %. However certain conditions are applicable to this condition
2. The rate is decreased from 28% to 18%. This new rate will be applicable from 15th Nov 2017 on Shampoos, Tiles, Watches, and Perfumes.
3. The rate is decreased from 28% to 12% on Wet grinders, Tanks
4. The rate is decreased from 18% to 12% on Condensed milk, refined sugar, and diabetic food.
5. The rate is decreased from 12% to 5% on Desiccated coconut, idli dosa batter, coir products.
6. The rate is decreased from 5% to 0% on Duar meal, khandsarisugar, dried vegetables
7. As far as restaurants within hotels, as well as room, on charges, not as much Rs. 7,500, the GST rate is set to 5%. In addition, the credit of ITC paid on private supplies shall not be taken into
8. As far as restaurants within hotels, as well as room, on charges, not as much Rs. 7,500, the GST rate is set to 18% and credit of ITC paid on private supplies can be gained.
9. As far as outdoor catering is concerned, it will be charged at 18% with the accessibility of ITC on inward supplies as before.

The new GST Rate - 28%reduced to 18%

As per as the new rules, the GST rate for the number of goods has been reduced from 28% to 18%. Currently, only 50 items will invite GST at 28% rate. However, other items will invite an 18% GST rate, which was reduced by 28%. For this purpose, categories are created to give a comprehensive knowledge of the items. Building Materials The GST rate imposed on building materials was reduced from the earlier fixed rate. The following items now carry a new GST rate.

1. Electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors, wire, cables, insulated conductors
2. Ceramic flooring blocks, pipes, conduit, pipe fitting, wallpaper and wall covering
3. Glass of all types and articles such as mirror, safety glass, sheets, glassware
4. Electrical boards, panels, consoles, cabinets and more for electric control or distribution.
5. Particle and/or fiber boards and plywood.
6. The article of wood, wooden frame, paving block.
7. Sanitary ware and parts thereof of all kind
8. Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic
9. Slabs of marbles and granite
10. Goods of marble and granite such as tiles
11. Ceramic tiles of all kinds
12. Fans, pumps, compressors
13. Lamp and light fitting
14. Door, windows, and frames of aluminum.
15. Articles of plaster such as board, sheet
16. Articles of cement or concrete or stone and artificial stone
17. Articles of asphalt or slate
18. Articles of mica.

Furniture and Home Decorations

The GST rate imposed on furniture and items used for home decoration was reduced from the earlier fixed rate. The following items now carry a modified GST rate.

1. Furniture, mattress, bedding and comparable furnishing
2. Varied articles such as vacuum flasks, lighters
3. Trunk, suitcase, vanity cases, briefcases, traveling bags and other handbags, cases
4. Articles of cutlery, stoves, cookers and similar nonelectric domestic appliances
5. All musical instruments and their parts
6. Artificial flowers, foliage, and artificial fruits
7. Office or desk equipment
8. Fire extinguishers and fire extinguishing charge
9. Shooting galleries, roundabouts, gymnastic, athletic equipment Physical exercise equipment, festival and carnival equipment.

Electronic and Office Stationeries

The GST rate imposed on electronic and office stationeries was reduced from the earlier fixed rate. The following items now carry a new GST rate.

1. Electrical apparatus for radio and television broadcasting
2. Sound recording or reproducing apparatus
3. Signaling, safety or traffic control equipment for transports
4. Goggles, binoculars, telescope
5. Cinematographic cameras and projectors, image projector
6. Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology
7. Primary cell and primary batteries
8. Multi-functional printers, cartridges
9. Electrical, electronic weighing machinery.

Personal Care Items The GST rate imposed on personal care items was reduced from the earlier fixed rate. The following items now carry a new GST rate.

1. Detergents, washing and cleaning arrangements
2. Liquid or cream meant for washing the skin
3. Razor and razor blades
4. Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar items; henna powder or paste, not mixed with any other ingredient;
5. Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorant
6. Perfumes and toilet waters
7. Beauty or make-up preparations.

Clothing as well as Personal Items

The GST rate imposed on clothing as well as personal items was reduced from the earlier fixed rate. The following items now carry a new GST rate.

1. Wristwatches, clocks, watch movement, watch cases, straps, and parts of watches.
2. The article of apparel and/or clothing accessories of leather, guts, fur skin, artificial fur and other articles such as saddler and harness for any animal.

Equipment, Firework and Industrial Items

The GST rate imposed on equipment, firework, and industrial items was reduced from the earlier fixed rate. The following items now carry a new GST rate.

1. Escalators, Cooling towers, pressure vessels, reactors
2. Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears, and gearing; ball or roller screws; gaskets
3. Explosive, anti-knocking preparation, fireworks
4. Rubber tubes and miscellaneous articles of rubber
5. Solvent, thinners, hydraulic fluids, anti-freezing preparation
6. Forklift, lifting, and handling equipment
7. Bulldozers, excavators, loaders, road rollers
8. Earthmoving and leveling machinery

Food and Food Arrangements : The GST rate imposed on food and food arrangements was reduced from the earlier fixed rate. The following items now carry a new GST rate.

1. Cocoa butter, fat, oil powder,
2. Extract, essence, and concentration of coffee, miscellaneous food preparations
3. Malt extract and food preparations of flour, groats, meal, starch or malt extract
4. Waffles and wafers coated with chocolate or containing chocolate
5. Chocolates, Chewing gum or bubble gum

Thus, “23rd GST Council Meeting- Modification in GST Rate for Goods”, brought forward a number of changes. In order to know about the changes made on items other than the ones mentioned above, individuals have to visit the official site of Income Tax.