New Delhi, Jan 19: The complete list of the items that have gone cheaper after the Goods and Services (GST) council meeting has come out now.  A number of items has been made tax-free, whereas a sizable number of items went from upper to lower slabs– a whopping total of 83 goods and services. This will be a major boost for the economy ahead of 2018 Budget. The items that have gone cheaper include water park, theme park, joy rides, go-carting, confectionery, second hand cars have become cheaper.

29 goods and 53 services have been made cheaper. Finished diamonds and precious stones have become cheaper– the tax has been slashed from 3 per cent to .25 per cent. 20 litre water bottle, mehendi cone have become cheaper. Entrance exams will be now tax-free. Finance minister Arun Jaitley said that no decision was taken on petrol-diesel and real estate. Rs 35,000 crore IGST credit will be divided between Centre and the state.

A number of items have been brought from the 28 per cent slab to 18 per cent. Water park, theme park, joy rides, go-carting, Ballet comes under this category. Confectionery, 20 litre water bottle, bio diesel, bio pesticides, sprinklers, drip irrigation machines and mechanical sprayers have been brought from 18 per cent slab to 12 per cent.

GST Revised Rates on Various Items:

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.87Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
2.8702Buses, for use in public transport, which exclusively run on bio-fuels.

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
87All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.1704Sugar boiled confectionary
2.2201Drinking water packed in 20 litters bottles
3.2809Fertilizer grade Phosphoric acid
4.29 or 38Bio-diesel
538The following Bio-pesticides, –

S. No.Name of the bio pesticide
1Bacillus thuringiensis var. israelensis
2Bacillus thuringiensis var. kurstaki
3Bacillus thuringiensis var. galleriae
4Bacillus sphaericus
5Trichoderma viride
6Trichoderma harzianum
7Pseudomonas fluoresens
8Beauveriabassiana
9NPV of Helicoverpaarmigera
10NPV of Spodopteralitura
11Neem based pesticides
12Cymbopogan

 

6.4418Bamboo wood building joinery
7.8424Drip irrigation system including laterals, sprinklers
8.8424Mechanical Sprayer

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.13Tamarind Kernel Powder
2.1404/3305Mehendi paste in cones
3.2711LPG supplied for supply to household domestic consumers by private LPG distributors
4.88 or any other chapterScientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.4601, 4602Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.5601 22 00Cigarette filter rods

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO REFUND OF UNUTILISED INPUT TAX CREDIT:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.5801 37 20Velvet fabric

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.7102Diamonds and precious stones

NIL GST RATE:

Vibhuti

Parts and accessories for manufacture of hearing aids.

De-oiled rice bran

LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

S.No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.2302Rice bran (other than de-oiled rice bran)

CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

S.NoChapter/Heading/

Sub-heading/

Tariff item

DescriptionPresent Compensation Cess RateCompensation Cess Rate Recommended
    8702Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions.15%Nil
87Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.Applicable rateNil
87All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.Applicable rateNil

CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

S.NoChapter/Heading/

Sub-heading/

Tariff item

DescriptionPresent IGST RateIGST Rate Recommended
88or any other chapterSatellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads18%5%

MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

S.NoChapter/Heading/

Sub-heading/

Tariff item

DescriptionPresent GST RateModification/clarification Recommended
27Poly Butylene Feed Stock & Liquefied Petroleum Gas18%The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.
Any chapterRail coach industryApplicable GST rateOnly the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways.
2701Coal rejects5% + Rs. 400 PMT Compensation CessCoal rejects fall under heading 2701 and attract 5% GST and Rs. 400 PMT Compensation Cess.

Exemptions / Changes in GST Rates / ITC Eligibility Criteria

1To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement of RCS airport from the present period of one year.
2To exempt supply of services by way of providing information under RTI Act, 2005 from GST.
3To exempt legal services provided to Government, Local Authority, Governmental Authority and Government Entity.
4To reduce GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works) from 18% to 12%.
5To levy GST on the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, @ 5% without ITC.
6To reduce GST rate on tailoring service from 18% to 5%.
7To reduce GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18%.
8To grant following exemptions:(i) To exempt service by way of  transportation of goods from India to a place outside India by air;

(ii) To exempt service by way of transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC.

The above exemptions may be granted with a sunset clause upto 30th September, 2018.

9To exempt services provided by  the Naval Insurance Group Fund by way of  Life Insurance to personnel of Coast Guard under the  Group Insurance Scheme of the Central Government retrospectively w.e.f. 1.7.2017.
10To exempt IGST payable under section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of  aggregate of the duties and taxes leviable  under section 3(7) of the Customs Tariff Act, 1975 read with sections 5 & 7 of IGST Act, 2017 on part of consideration declared under section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
11To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.
12To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%.
13To enhance the exemption limit of Rs 5000/- per month per member to Rs 7500/- in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution.
14To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.
15To exempt dollar denominated services provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India.
16To  exempt  (a) services by government or local authority to governmental authority or government entity, by way of lease of land, and (b) supply of land or undivided share of land by way of lease or sub lease where such supply is a part of  specified composite supply of construction of flats etc. and   to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the  same effective  rate of GST on property built on leasehold and freehold land.
17To amend entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to Govt. entity.
18To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. upto 25% of supply of goods.
19To reduce job work services rate for manufacture of leather goods (Chapter 42) and footwear (Chapter 64) to 5%.
20To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification.To exempt services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.
21To enhance the limit to Rs 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of Rs. 50,000.
22To exempt reinsurance services in respect of insurance schemes exempted under S.Nos. 35 and 36 of notification No. 12/2017-CT (Rate).[It is expected that the premium amount charged from the government/insured in respect of future insurance services is reduced.]
23To increase threshold limit for exemption under entry No. 80 of Notification No. 12/2017-C.T. (Rate) for all the theatrical performances like Music, Dance, Drama, Orchestra, Folk or Classical Arts and all other such activities in any Indian language in theatre GST from Rs.250 to 500 per person and to also extend the threshold exemption to services by way of admission to a planetarium.
24To reduce GST on Common Effluent Treatment Plants services of treatment of effluents, from 18% to 12%.
25To exempt services by way of fumigation in a warehouse of agricultural produce.
26To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods.
27 To exempt subscription of online educational journals/periodicals by educational institutions who provide degree recognized by any law from GST.
28To exempt the service provided by way of renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education upto higher secondary or equivalent.
29To extend the concessional rate of GST on houses constructed/ acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan MantriAwasYojana (Urban) and low-cost houses up to a carpet area of 60 square metres per house in a housing project which has been given infrastructure status, as proposed by Ministry of Housing & Urban Affairs, under the same concessional rate.
30To tax time charter services at GST rate of 5%, that is at the same rate as applicable to voyage charter or bare boat charter, with the same conditions.
31To levy concessional GST @12% on the services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of building used for providing (for instance, centralized cooking or distributing) mid-day meal scheme by an entity registered under section 12AA of IT Act.
32To exempt services provided by and to FédérationInternationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.
33To exempt government’s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se.

(B) Rationalization of certain exemption entries

1To provide inCGST rules that value of exempt supply under sub-section (2) of section 17, shall not include the value of deposits, loans or advances on which interest or discount is earned (This will not apply to a banking company and a financial institution including a non-banking financial company engaged in providing services by way of extending deposits, loans or advances).
2To defer the liability to pay GST in case of TDR against consideration in the form of construction service and on construction service against consideration in the form of TDR to the time when the possession or right in the property is transferred to the land owner by entering into a conveyance deed or similar instrument (eg. allotment letter). No deferment in point of taxation in respect of cash component.
3To tax renting of immovable property  by government or local authority to a registered person under reverse Charge while renting of immovable property by government or local authority to un-registered person shall continue under forward charge
4To define insurance agent in the reverse charge notification to have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938, so that corporate agents get excluded from reverse charge.
5To insert a provision in GST Rules under section 15 of GST Act that the value of lottery shall be 100/112 or 100/128 of the price of lottery ticket notified in the Gazette (the same is currently notified in the rate notification).
6To add, in the GST rate schedule for goods at 28%, actionable claim in the form of chance to win in betting and gambling including horse racing.
7To insert in GST rules under section 15 of GST Act,-Notwithstanding anything contained in this chapter, value of supply of Betting & Gambling shall be 100 % of the face value of the bet or the amount paid into the totalizator.

(C) Clarifications

1To clarify that exemption of Rs 1000/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels.
2To clarify that fee paid by litigants in the Consumer Disputes Commissions and any penalty imposed by these Commissions, will not attract GST.
3To clarify that elephant/ camel joy rides are not classified as transportation services and attract GST @ 18% with threshold exemption to small services providers.
4To clarify that leasing or rental service, with or without operator, of goods, attracts same GST as supply of like goods involving transfer of title in the said goods. Therefore, the GST rate for the rental services of self-Propelled Access Equipment (Boom. Scissors/Telehandlers) is 28%.
5To clarify that,-1) Services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt.

2) Hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt.

3) Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors is taxable.

6To clarify that  services by way of,-1. admission to entertainment events or access to amusement facilities including casinos, race-course

2. ancillary services provided by casinos and race-course in relation to such admission.

3. services given by race-course by way of totalisator (if given through some other person or charged separately as fees for using totalisator for purpose of betting,
are taxable at 28%. Services given by race-course by way of license to bookmaker which is not a service by way of betting and gambling, is taxable at 18%.

 

Tailoring, mehendi cones, private distribution of LPG gas, house keeping service providers have been brought from 18 to 5 per cent. Some special biscuits and velvet fabrics have been brought under this head.From now on, 18 per cent tax will levied on sports utility vehicles– earlier it was 28 per cent. Other old vehicles will attract 12 per cent tax.