New Delhi, Oct 7: In a bid to ease the concerns of traders, exporters and small business, the Narendra Modi-led government on Friday slashed the GST rates on 27 items of common consumption, including roti, khakra, namkeens, stationery, man-made yarn — with most of them brought to five per cent category.

Briefing media, after the Council’s 22nd meeting in national capital,  Finance Minister Arun Jaitley said,”Traders having Rs 1.5 crore turnover, which are approximately 90 per of assesses outside Composition Scheme, can now file quarterly return.” The registered buyers from such small taxpayers would be eligible to avail input tax credit on a monthly basis.

The tax rate on services, including government contracts involving large labour, job work services in relation to imitation jewellery, some food and food products has been reduced from 12 per cent to 5 per cent.

Here is the list of goods on which GST rates have been slashed:

S.No. Chapter/Heading/

Sub-heading/

Tariff item

Description Present GST Rate GST Rate Recommended by the GST Council
1. 0804 Mangoes sliced dried 12% 5%
2. 1905 or 2106 Khakra and plain chapati / roti 12% 5%
3. 19 or 21 Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme dulyapproved by the Central Government or any State Government, subject to specified conditions [Foot note 1] 18% 5 %

 

4. 21 Namkeens other than those put up in unit container and, –(a) bearing a registered brand name; or

(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily

[Foot note 2]

12% 5%
5. 2710 Imposing GST only on the net quantity of superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB] 18% 18%[Clarification to be issued]
6. 30 Ayurvedic, Unani, Siddha, Homeopathy medicines, other than those bearing a brand name[Foot note 3] 12% 5%
7. 3213 Poster Colour 28% 18%
8. 3407 Modelling paste for children amusement 28% 18%
9. 3915 Plastic waste, parings or scrap 18% 5%
10. 4004 00 00 Rubber  waste, parings or scrap 18% 5%
11. 4017 00 20 Hard Rubber waste or scrap 28% 5%
12. 4707 Paper waste or scrap 12% 5%
13. 4907 Duty credit scrips 5% Nil
14. 5401 Sewing thread of manmade filaments, whether or not put up for retail sale 18% 12%
15. 5402, 5404, 5406 All synthetic filament yarn, such as nylon, polyester, acrylic, etc. 18% 12%
16. 5403, 5405, 5406 All artificial filament yarn, such as viscose rayon, Cuprammonium, 18% 12%
17. 5508 Sewing thread of manmade staple fibres 18% 12%
18. 5509, 5510, 5511 Yarn of manmade staple fibres 18% 12%
19. 5605 Real Zari 12% 5%
20. 6802 All goods falling under heading 6802 [other than those of marble and granite or those which attract 12% GST] 28% 18%
21. 7001 Cullet or other waste or scrap of Glass 18% 5%
22. 8305 Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal 28% 18%
23. 8483 Plain Shaft Bearing 8483 28% 18%
24. 84 Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP 28% 18%
25. 84 or 85 Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps 28% 18%
26. 84 or 85 E-Waste 28%/18% 5%
27. Any Chapter Biomass briquettes 18% 5%

Below is the list of goods getting IGST exemption on import of goods from now: 

Description Present applicable IGST rate Recommended IGST rate
1 IGST exemption on imports of rigs imported for oil / gas exploration and production projects under lease, subject to the following conditions that:(i)       Integrated tax leviable under section 5(1) of the IGST Act, 2017 on supply of service covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017;

(ii)     The rig is not sold without the prior permission of the Commissioner of Customs of the port of importation;

(iii)   to re-export the goods within 3 months from the expiry of the period for which they were supplied under a transaction covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017 out of India;

(iv)   to pay on demand an amount equal to the integrated tax payable on the said goods but for the exemption under this notification in the event of violation of any of the above conditions and applicable interest.

5% Nil
2 Exemption from IGST on imports of medicines supplied free by international agencies like UNICEF, WHO, Red Cross etc. 12%/5% Nil
3 A.    Exemption from IGST on imports of bona fide gifts upto CIF value limit of Rs. 5000 imported through post or air. 28% Nil

The GST Council, in its 22nd meeting, held at the Vigyan Bhawan, was chaired by Union Finance Minister Arun Jaitley to discussed the impact of the GST on trade and exporters.