29 Jan 2018Posted By: Mudit Handa

25th GST Council Meeting paves way for a Consumer-friendly Union Budget 2018

It's undeniable that the GST Department has all the more sought to pose the consumer as the king of the Union Budget 2018. In its 25th meeting that was held at Vigyan Bhawan, Delhi the GST Council had revised the GST rates for many essential commodities as well as forthcoming civil projects.

The council in its meeting had substantially lowered the rate of GST on as many as 29 goods and 53 services prior to the upcoming Union Budget 2018. Very significantly, the GST Council had lessened the GST rate on the impending metro rail and monorail projects. Apart from that, the council has taken a positive initial step to bring petroleum under the purview of GST by drastically reducing the GST cap from 18% to 5% on the transportation of three crude-oil products, viz. MS (Motor-spirit/gasoline), HSD (High-Speed Diesel) and ATF (Aviation-Turbine Fuel). Moreover, the council had announced that the decision to include the other petroleum products under GST will be soon implemented at the 26th meeting, the date of which is yet to be scheduled.

The revised GST Rates have been implemented with effect from 25th of January. A few imperative areas where the percentage of GST has been lowered are listed below:

  • GST Rate has been lessened 12% from 18% on Public Works Contract Services that are provided by sub-contractor to the main contractor who will, in turn, impart such service to the Central or State Government, Union territory or a local administration. This also includes construction of metro rail and monorail projects.
  • The council has slouched GST Rate for transportation of three crude-oil products, viz. MS (Motor-spirit/gasoline), HSD (High-Speed Diesel) and Aviation Fuel from 18% to 5%, in case the vendor has not availed input credit and 12% if he has.

  • There is a provision of concessional GST @ 12% on construction, erection, commissioning, installation, repairs & maintenance, and/or renovation of building for mid-day meal schemes.
  • The aforesaid concession will be also imposed on mining or exploration services of petroleum, crude oil, and natural gas and in respect to drilling services.
  • 5% GST will be charged for small housekeeping services that are availed without input credit.
  • GST has been drastically reduced to 5% from 18% for tailoring and boutique services.

Apart from the concessions that have been provided on the essentialities discussed above, the government will also give some relief to the entertainment-lovers, such as-       

  • Reduction of GST from 28% to 18% on the entry in theme parks, water-parks, fun-rides, merry-go-rounds, go-karting, and ballet.

  • Keeping in mind the upcoming FIFA world cup 2018, the government has exempted services provided by/to FIFA and its subsidiaries, in case any of its events is hosted by India.
  • GST rate of 5% on travel packages in case the services have been provided by a tour operator service with input credit.


Furthermore, the GST Council has made it that in the next meeting it will introduce additional measures like including petrol & diesel under GST purview, alongside the introduction of new and simplified GST return online filing model.


These measures will only pave way for a consumer-friendly budget, but will also induce the traders to get a GST registration.


To know more about GST


If you have any doubt regarding GST registration procedure or need any assistance with filing of GST return online, feel free to contact us at 8881-069-069.    


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