23rd GST Council Meeting – Highlights
In the 23rd GST Council Meeting held on 10th November 2017, the Government has announced various measures to simplify compliance under the GST regime and reduce GST burden on the common man. The decisions announced in the 23rd GST Council Meeting will tremendously help in improving ease of doing business in India and will make India one of the best places to do business in the world.
1. GST Rate Changes for Goods
2. GST Rate Changes for Services
3. Changes to Composition Scheme
4. GST Return Due Date Changes
GST Rate Changes for Goods
- The GST rates changes will tremendously reduce the tax burden on the common man and boost the economy.
- GST rates for various goods listed under the 28% slab have been reduced.
GST Rate Reduced from 28% to 18%
For the following goods, GST rate has been reduced from 28% to 18%. After the proposed change, only 50 items will attract GST at 28% rate. Majority of the items for which GST rate was reduced from 28% to 18% are building materials, personal care items, and equipment.
- Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors.
- Electrical boards, panels, consoles, cabinets etc for electric control or distribution.
- Particle/fiber boards and plywood.
- The article of wood, wooden frame, paving block.
- Sanitary ware and parts thereof of all kind
- Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic
- Slabs of marbles and granite
- Goods of marble and granite such as tiles
- Ceramic tiles of all kinds
- Fans, pumps, compressors
- Lamp and light fitting
- Door, windows, and frames of aluminum.
- Articles of plaster such as board, sheet
- Articles of cement or concrete or stone and artificial stone
- Articles of asphalt or slate
- Articles of mica
- Ceramic flooring blocks, pipes, conduit, pipe fitting Wallpaper and wall covering
- Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware
Furniture and Home Decorations
- Furniture, mattress, bedding and similar furnishing
- Miscellaneous articles such as vacuum flasks, lighters
- Trunk, suitcase, vanity cases, briefcases, traveling bags and other handbags, cases
- Articles of cutlery, stoves, cookers and similar non-electric domestic appliances
- All musical instruments and their parts
- Artificial flowers, foliage, and artificial fruits
- Office or desk equipment
- Fire extinguishers and fire extinguishing charge
- Physical exercise equipment, festival, and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment
Personal Care Items
- Detergents, washing and cleaning preparations
- Liquid or cream for washing the skin
- Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;
- Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorizers
- Perfumes and toilet waters
- Beauty or make-up preparations
- Razor and razor blades
Electronic & Office Stationeries
- Primary cell and primary batteries
- Multi-functional printers, cartridges
- Electrical, electronic weighing machinery
- Electrical apparatus for radio and television broadcasting
- Sound recording or reproducing apparatus
- Signalling, safety or traffic control equipment for transports
- Goggles, binoculars, telescope
- Cinematographic cameras and projectors, image projector
- Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology
Clothing & Personal Items
- Wristwatches, clocks, watch movement, watch cases, straps, parts
- Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal
Equipment, Firework & Industrial Items
- Forklifts, lifting and handling equipment
- Bulldozers, excavators, loaders, road rollers
- Earthmoving and leveling machinery
- Escalators, Cooling towers, pressure vessels, reactors
- Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears, and gearing; ball or roller screws; gaskets
- Explosive, anti-knocking preparation, fireworks
- Rubber tubes and miscellaneous articles of rubber
- Solvent, thinners, hydraulic fluids, anti-freezing preparation
Food and Food Preparations
- Cocoa butter, fat, oil powder,
- Extract, essence ad concentrates of coffee, miscellaneous food preparations
- Chocolates, Chewing gum/bubble gum
- Malt extract and food preparations of flour, groats, meal, starch or malt extract
- Waffles and wafers coated with chocolate or containing chocolate
GST Rate Reduced from 28% to 12%
For the following goods, GST rate has been reduced from 28% to 12%:
- Wet grinders consisting of stone as grinder
- Tanks and other armored fighting vehicles
GST Rate Reduced from 18% to 12%
For the following goods, GST rate has been reduced from 18% to 12%:
- Condensed milk
- Refined sugar and sugar cubes
- Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning
- Diabetic food
- Medicinal grade oxygen
- Printing ink
- Handbags and shopping bags of jute and cotton
- Hats (knitted or crocheted)
- Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
- Specified parts of sewing machine
- Spectacles frames
- Furniture wholly made of bamboo or cane
GST Rate Reduced from 18% to 5%
For the following goods, GST rate has been reduced from 18% to 5%:
- Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
- Flour of potatoes put up in unit container bearing a brand name
- Chutney powder
- Fly ash
- Sulphur recovered in refining of crude
- Fly ash aggregate with 90% or more fly ash content
GST Rate Reduced from 12% to 5%
For the following goods, GST rate has been reduced from 12% to 5%:
- Desiccated coconut
- Narrow woven fabric including cotton newar [with no refund of unutilized input tax credit] iii. Idli, dosa batter
- Finished leather, chamois and composition leather
- Coir cordage and ropes, jute twine, coir products
- Fishing net and fishing hooks
- Worn clothing
- Fly ash brick
GST Rate Reduced from 5% to 0%
For the following goods, GST rate has been reduced from 5% to 0%:
- Guar meal
- Hop cone (other than grounded, powdered or in pellet form)
- Certain dried vegetables such as sweet potatoes, maniac
- Unworked coconut shell
- Fish frozen or dried (not put up in unit container bearing a brand name)
- Khandsari sugar
Other GST Rate Changes for Goods
GST rates on aircraft engines have been changed from 28% or 18% to 5%. Also, the GST rate for aircraft tires has been changed from 28% to 5% and aircraft seats from 28% to 5%.
The GST rate on bangles of lac/shellac has also been changed from 3% GST rate to Nil.
GST Exemption for Goods Announced at the 23rd GST Council Meeting
- IGST is now not applicable on imports of lifesaving medicine supplied free of cost by the overseas supplier for patients, subject to certification by DGHS of Centre or State and certain other conditions.
- IGST is now not applicable on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount.
- To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to the distinct person under section 25(4) for use in the production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act.
- IGST will not be applicable on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions.
- GST will not be applicable on specified goods, such as scientific or technical instruments, software, prototype supplied to a publicly funded research institution or a university or IISc, or IlTs or NIT.
- More professional items can now be imported on a temporary basis without GST by accredited press persons visiting India to cover certain events, broadcasting equipment, sports items, testing equipment, under ATA Carnet system. These goods are to be re-exported after the specified use is over.
Clarification of GST Rate
In addition to the above GST rate changes and exemptions, the GST Council also announced certain clarification to improve ease of doing business in India as follows:
Inter-State Transfer of Equipment
Inter-state movement of goods like rigs, tools, spares, and goods on the wheel like cranes, not being in the course of furtherance of supply of such goods, does not constitute a supply. This clarification gives major compliance relief to the industry as there is a frequent inter-state movement of such kind in the course of providing services to customers or for the purposes of getting such goods repaired or refurbished or for any self-use. Service provided using such goods would, in any case, attract applicable tax.
Raw Cotton Purchase
GST on a supply of raw cotton by agriculturist will be liable for GST, which is to be paid by the recipient of such supply under reverse charge.
Supply of E-Waste Products
Supply of e-waste attracts 5% GST rate. Concerned notification to be amended to make it amply clear that this rate applies only to e-waste discarded as waste by the consumer or bulk consumer.