Ahead of the Union Budget 2018, the Goods and Service Tax (GST) Council headed by Finance Minister Arun Jaitley on Thursday slashed tax rate on 54 services and 29 goods, including second-hand vehicles, confectionery and bio-diesel, while veering around to simplifying return filing process for businesses. The new rates would be effective from January 25.
The Council cut GST rate on second-hand medium and large cars and SUVs from 28 per cent to 18 per cent and on other old and used motor vehicles to 12 per cent.
Tamarind kernel powder, mehendi paste in cones and domestic LPG supplied by private distributors will attract a reduced duty of five per cent instead of 18 per cent.
Tax on diamonds and precious stones was slashed to 0.25 per cent from current 3 per cent.
While tax rate for bio-diesel was slashed to 12 per cent from 18 per cent, that for public transport buses run on environment-friendly bio-fuels has been reduced to 18 per cent from 28 per cent previously.
Tax rate on irrigation equipment, sugar boiled confectionery, drinking water packed in 20-litre bottles, fertiliser grade phosphoric acid, tamarind kernel power, mehendi paste in cones, LPG supplied by private distributors, articles of straw, velvet fabric and rice bran was also cut.
HERE'S THE FULL LIST OF REVISED ITEMS:
List of goods on which GST council recommended for reduction from 28 per cent to 18 per cent:
- Old 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.
- Buses, for use in public transport, which exclusively run on biofuels.
List of goods on which GST rate recommended for reduction from 28 per cent to 12 per cent:
- All 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 per cent to 12 per cent:
- Sugar boiled confectionary
- Drinking water packed in 20 litters bottles
- Fertilizer grade Phosphoric acid
- Bio-diesel
- The following Bio-pesticides, -
Bacillus thuringiensis var. israelensis
Bacillus thuringiensis var. kurstaki
Bacillus thuringiensis var. galleriae
Bacillus sphaericus
Trichoderma viride
Trichoderma harzianum
Pseudomonas fluoresens
Beauveriabassiana
NPV of Helicoverpaarmigera
NPV of Spodopteralitura
Neem based pesticides
Cymbopogan
- Bamboo wood building joinery
- Drip irrigation system including laterals, sprinklers
- Mechanical Sprayer
List of goods on which GST rate recommended for reduction from 18 per cent to 5 per cent:
- Tamarind Kernel Powder
- Mehendi paste in cones
- LPG supplied for supply to household domestic consumers by private LPG distributors
- Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mockups and modules, raw material and consumables required for launch vehicles and satellites and payloads
List of goods on which GST rate recommended for an increase from 12 per cent to 18 per cent:
- Cigarette filter rods
List of goods on which GST rate recommended for reduction from 12 per cent to 5 per cent:
- Articles of straw, of esparto or of other plaiting materials; basket-ware and wickerwork
List of goods on which GST rate recommended for reduction from 12 per cent to 5 per cent with no refund of unutilised input tax credit:
- Velvet fabric
List of goods on which GST rate recommended for reduction from 3 per cent to 0.25 per cent:
- Diamonds and precious stones
Nil GST rate:
- Vibhuti
- De-oiled rice bran
- Parts and accessories for the manufacture of hearing aids.
List of goods on which GST rate recommended for an increase from nil to 5 per cent:
- Rice bran (other than de-oiled rice bran)
