The GST Council that met in New Delhi on 21 July took a number of decisions related to exemptions and changes or rationalisation of rates. The 28th meeting of the GST Council, held under the chairmanship of Union Minister for Railways , Coal , Finance & Corporate Affairs Piyush Goyal, decided to exempt sanitary napkins from the Goods and Services Tax (GST) net and changed the slabs for a number of products.
Goyal, the interim FM who is handling the department in the absence of Union minister Arun Jaitley, listed out the products that will now attract lower GST rates.
He also said the GST Council would now focus on job creation too. The government also companies with a turnover of up to Rs 5 crore could file returns quarterly but would have to deposit GST every month.
“GST Council has cleared 46 amendments which will be passed in Parliament,” said Goyal.
READ | Govt abolishes GST on sanitary napkins
The decisions will be applicable from 27 July. Here is a look at the changes and new rate slabs produced.
Products brought down from 28% GST slab 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 such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc
- Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc
- Televisions upto the size of 68 cm
- Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries
- Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type 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.
READ | Govt slashes GST rates, eases filing of returns
Products brought down from 28% GST slab to 12%
- Fuel cell vehicle. Further, compensation cess shall also be exempted on fuel cell vehicle.
GST rates recommended to be brought down from 18%/12%/5% to Nil
- Stone/marble/wood deities
- Rakhi (other than those made of precious or semi-precious material)
- Sanitary napkins
- Coir pith compost
- Sal leaves siali leaves and their products and Sabai Rope
- Raw material for broom
- Khali dona
- Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance
GST rates recommended to be brought down 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 Rs 1000
GST rates recommended to be brought down from 18% to 12%:
- Bamboo flooring
- Brass kerosene pressure stove
- Hand operated rubber roller
- Zip and slide fasteners
GST rates recommended to be brought down from 18% to 5%
- Ethanol for sale to Oil Marketing Companies for blending with fuel
- Solid bio fuel pellets
Rate change in respect of footwear
- 5% GST is being extended to footwear having a retail sale price up to Rs 1000 per pair
- Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%
GST rates to be brought down for specified handicraft items from 18% to 12%
- 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 (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 etc, (including articles of lac, shellac)
- Ganjifa card
GST rates to be brought down for specified handicraft items from 12% to 5%
- 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