19 Dec 2019Posted By: Mudit Handa

38th GST Council Meeting: GST Rate Changes on Goods

The 38th GST Council meeting was presided by the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman had taken place on 18th December 2019. The Union Minister of State for Finance & Corporate Affairs Sh. Anurag Thakur along with Finance Ministers of States & UTs were also there. At the GST Council meeting, several changes in the GST rates of various goods & services were recommended. Apart from that, some commodities are exempted from GST.

Undoubtedly, the GST Council has taken significant decisions in the interest of the merchants. The council has introduced a reduction in the GST rates of several goods. The Council has also introduced uniform GST rates in case of several items for daily use. Besides uniform GST rate is introduced on the lotteries. This will give relief to the consumers as well as the traders having GST registration.

However, these changes will be applicable in the next year. The GST rate changes on goods have been summarized below:

Here, we will discuss in detail the important changes made in the GST rate on goods & services.


1. Which commodities will be GST exempt?

The GST council has decided to exempt the industrial & financial plots of the government entities. 

  • The GST exemption will be provided on the upfront amount payable for the long term lease of industrial or financial infrastructure plots owned by an entity that has 20% or more stake of Central or State Governments.
  • Till now, the aforesaid exemption was available only to those entities that have 50% or more stake of the Central or State Governments.

2. When will the GST exemption on government plots become applicable?

This GST exemption on government plots shall become applicable with effect from 1st January 2020.

3. Which goods will become costlier?

Certain kinds of Plastic packets will now become costlier.

The GST Council has decided that the uniform GST rate of 18% shall be applicable to the following types of packages:

  • Woven as well as Non-Woven Bags,
  • Some sacks of polyethylene or polypropylene strips, both laminated & non-laminated,
  • Flexible Intermediate Bulk Containers

These goods fall under HSN chapter 3923/6305. Earlier the GST rate on these packs was 12%. The rates have been increased due to the requests received in the 37th meeting. The GST council has now recommended raising the GST to a uniform rate of 18% on all such bags, in view of the environmental management.

4. When will the GST rate change on plastic bags be applicable?

The new GST rate on the aforesaid types of plastic bags shall become effective from the 1st of January 2020.

5. What will be the GST rate on State-run lotteries?

The GST Council has decided that the uniform GST rate of 28% shall be applicable to all the lotteries whether run within the State or outside the state. 

  • Earlier, the GST rate on the State-run lotteries was 12%. 
  • Now the council has decided to levy a single rate of GST @ 28% on both State-run as well as State-authorized lotteries.

6. When will the uniform GST rate on lotteries be applicable?

This uniform GST rate of 28% on all lotteries shall become applicable with effect from 1st March 2020.

Also, read the  


If you need any further assistance with regard to the GST registration process, please feel free to contact our business advisor at 8881-069-069.

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