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List of Goods For Change In GST Rate Recommended

APMH Management & IT Consultant
Author: CA Mitesh Katira
Posted On: Wednesday 13 September 2017

Tags: GST GST Rates GST Rates Reduced

In a major relief yet again for the consumers, the GST council has lowered the GST rates for a number of daily-use products ranging from idli/dosa batter to kitchen gas lighter. However tax has been increased for the bigger cars, This increase in cess rate would take the overall tax incidence on mid size cars to 45%, large cars to 48% and SUVs to 50% from 43% ( 28% GST+15%cess)now.

The GST Council has recommended changes in the GST rates on the following goods 

S. No.

 

HSN


Description

Present  GST rate

Recommended GST rate

1

0802

Walnuts, whether or not shelled

12%

5%

 

2

0813

Tamarind dried

12%

5%

3

2106

Roasted Gram

12%

5%

4

2106

Custard powder

28%

18%

5

2106

Batters, including idli/ dosa batter

18%

12%

6

2304,2305,2306

Oil cakes

Nil for cattle feed 5% for other uses

5%

7

2306

Cotton seed oil cakes

Nil for cattle feed 5% for other uses

Nil

8

33074100

Dhoop batti, dhoop,sambhrani and other similar items

12%

5%

9

3926

Medical     grade    sterile     disposable gloves of plastics

28%

18%

10

3926

Plastic  raincoats

28%

18%

11

4016

 

Rubber Bands

28%

12%

12

4016

Rice rubber for paddy de husking machines

28%

18%

13

4907

Duty credit scrips

12%

5%

 

14

50 to 55

 

 

Khadi Fabric, sold through khadi and village Industries Commission’s outlets

5%

Nil

15

5801

Corduory Fabrics

12%

5%( with no refund of ITC)

16

5808

 

Saree full

12%

5%

17

6501

 

Textile Caps

18%

12%

18

6912

 

Idols made of clay

28%

Nil

19

44,68,63

 

Idols of wood, Stone

28%

12%

20

7102

Rough industrial diamonds including unsorted rough diamonds

3%

0.25%

21

8424

Nozzles for drip irrigation equipment or sprinklers [mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders]

18%

12%

22

8445

Charkha for hand spinning of yarns, including amber charkha

Nil /18%

Nil

23

8528

Computer monitors upto 20” Note: Computer monitors upto 17” are already at 18%

28%

18%

24

9404

Cotton quilts

18%

5%

25

9601

Worked corals, other than articles of coral

28%

5%

26

9603

Brooms and brushes, consisting of twigs or other vegetable materials, bound together, with or without handles. Note: Phool bahari jhadoo is already at Nil GST.

5%

Nil

27

9613

Kitchen gas lighters

28%

18%

28

Any chapter

 

Rosaries and prayer beads

18%

5%

29

Any chapter

 

Hawan samagri

Applicable rate

 

5%

30

4419

Hawan samagri

18%

12%

31

4601,4602

Grass, leaf and reed and fibre products, including mats, pouches, wallets

12%

5%

32

4823

Paper Mache articles

18%

5%

33

68

 

Stone inlay work

28%

 

12%

34

6802

statues, statuettes, pedestals; high or low reliefs, crosses, figures of animals, bowls, vases, cups, cachou boxes, writing sets, ashtrays, paper weights, artificial fruit and foliage, etc; other ornamental goods essentially of stone.

28%

12%

35

6909

 

 

 

 

Pots, jars and similar articles of a kind used for the conveyance and packing of goods of ceramic.

28%

12%

36

6911

Tableware, kitchenware, other household articles and toilet articles of porcelain or china [including small accessories bathroom or sanitary fittings such as soap dishes, sponge baskets, toothbrush holders, towel hooks and toilet paper holders]

18%

12%

37

6912

Tableware, kitchenware, other household articles and toilet articles other than of porcelain or china [including small accessories bathroom or sanitary fittings such as soap dishes, sponge baskets, toothbrush holders, towel hooks and toilet paper holders].

28%

12%

38

6913

Statues and other ornamental articles.

28%

12%

39

8306

All goods, including bells, gongs and the like, non-electric, of base metal; statuettes and other ornaments of base metal including metal bidri ware; photograph, picture or similar frames, of base metal; mirrors of base metal,

18%

12%

40

9601

 

Worked ivory, bone, tortoise shell, horn, antlers, mother of pearl, and other animal carving material and articles of these materials (including articles obtained by moulding)]; articles of coral

28%

 

12%

 

The issue of avoidance of 5% GST on pulses, cereals and flours, put up in unit container and bearing a registered brand name, was also discussed by the GST Council. After detailed deliberations, the Council recommended that the following amendments may be made to the existing Notifications, so as to provide that:

1) A brand registered as on 15.05.2017 shall be deemed to be a registered brand for the purposes of levy of 5% GST, irrespective of whether or not such brand is subsequently deregistered.

2) A brand registered as on 15.05.2017 under the Copyright Act, 1957 shall also be treated as a registered brand for the purposes of levy of 5% GST.

3) A brand registered as on 15.05.2017 under any law for the time being in force in any other country shall also be deemed to be a registered brand for the purposes of levy of 5% GST.

4) A mark or name in respect of which actionable claim is available shall be deemed to be a registered brand name for the purposes of levy of 5% GST.

  1. Indigenous handmade musical instruments attract Nil GST. The Council recommended a list of such handmade instruments [eligible for Nil GST rate.

Unbranded food items are exempted from the GST, whereas branded and packaged food items attract 5% rate. Hence, many businesses are deregistering their brands to avoid the levy of GST. 

It needs to be said that most of the items on which GST has been reduced are ones of daily use and as such they would become cheaper. This would only be good for the common people who use them on a daily basis.

Thus can be said that the changed nature of Indian economy had enabled the decision makers to reduce some of the rates.

Please feel free to write to us on mitesh@apmh.in for any further queries on the above blog.

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