Which Goods will Become Cheaper after 31st GST Council Meeting?
In a bid to rationalize the Goods and Services Tax framework for the taxpayers and traders who have GST registration, the 31st GST Council meeting that was held on 22nd December 2018 at the Vigyan Bhawan, New Delhi took crucial decisions as regards GST rate cuts on various goods & services.
It is beyond any doubt that the expectations were really high from the GST Council with regard to the GST simplification and rationalization of tariffs. Most importantly, 6 items have been already removed from the uppermost 28% GST slab. Out of 34 such items, now only 28 are left. Tariff on such commodities has been slashed from 28% to 18%.
In the backdrop of Prime Minister of India Sh. Narendra Modi’s announcement to bring 99% goods under sub-18% GST slab, the council has introduced noteworthy GST rate cuts in the 31st GST council meeting. These will be made effective from 1st January 2019 and will surely benefit the consumers as well as traders having GST registration.
All the changes made in the GST rates have been listed below.
#1. Where has GST brought down from 28% to 18%?
Significantly, there are 6 items that have been removed from the uppermost 28% GST slab. The rates have been brought down to 18%. Those goods are as follows-
- Pulleys, transmission shafts & cranks, gearboxes etc.,
- Monitors and Televisions of 32 inches screen size,
- Retreaded (second-hand) pneumatic rubber tyres,
- Power banks of Li-ion batteries: Importantly, GST on Lithium-ion batteries is 18%. Now there will be uniformity in GST rate of power bank and Li-ion battery.
- Digital cameras and video camcorders
- Video game consoles.
#2. Where has GST brought down from 18% to 12%?
The GST rates have been brought down from 18% to 12% in case of items made of Cork. These are as follows-
- Roughly squared or debagged cork
- Articles made up of natural cork
- Agglomerated cork
#3. Which are the goods where GST has fallen from 18% to 5%?
GST has been brought down from 18% to 5% in case of Marble rubble (debris).
#4. Which are the goods where GST has fallen from 12% to 5%?
GST has been slashed from 12% to 5% in case of the following items-
- Natural Cork
- Walking Sticks and
- Fly ash Blocks
#5. Where has GST fallen from 28% to 5%?
GST has been brought down to 5% from 28% in the case of parts & accessories for carriages for differently-abled people.
#6. Where has GST fallen from 12% to Nil?
Music Books, that were hitherto under 12% slab, will now be exempted from GST.
#7. Where has GST fallen from 5% to nil?
Following are the goods where the GST rate was 5%, but now these goods are exempted from GST.
- Vegetables, (raw or cooked by way of steaming or boiling), frozen veggies, branded and stored in a unit container.
- Provisionally preserved Veggies (such as those preserved by sulphur dioxide gas, brine, sulphur water or other preservatives), and are not unsuitable for immediate consumption.
#8. How has GST council rationalized tax on solar power plants?
- In the case of renewable energy sources and spare parts for their manufacturing such as biogas, solar power devices and solar power generating system (SGPS), it has been now decided that GST rate shall be kept at 5%, in the 31st GST Council Meeting.
- However, other types of goods & services used in such plants will attract respective GST.
- In view of certain disputes, the GST Council has said that 70% of the gross value shall be ‘deemed value’ of supply of such goods that will attract GST@5%. The remaining portion (30%) of the aggregate value of such Engineering, Procurement and Construction (EPC) contract shall be considered as the value of taxable supply of service. This will attract the standard GST rate.
Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.