49 Items Get Cheaper as GST Council Cuts Rates, Filing Process to Become Simpler

Finance Minister informed that the GST council will be meeting again via video conferencing before the Budget to finalise on the new return filing model presented by Nandan Nilekani, co-founder Infosys.

New Delhi: The 25th GST Council meet on Thursday, recommended rate cuts on 49 items, including zero percent on 29 handicraft products with its main focus on easing return filing processes.

Finance Minister Arun Jaitley informed that the GST council will be meeting again via video conferencing before the Budget to finalise on the new return filing model presented by Nandan Nilekani, co-founder Infosys.

The Council did not reach a consensus regarding the new model and is likely to discuss the issues within states.

The E-way bill, which is scheduled to be rolled from February 1 in the budget session of the Parliament, was also discussed.

IGST credit worth Rs 35,000 crore will be passed on to states to improve liquidity. The Council also decided to keep GSTR 3B.

The meeting comes at a time when GST collections have come down. GST collections slipped for the second consecutive month to Rs 80,808 crore in November, down from over Rs 83,000 crore in the preceding month. The collections fell after the Council cut rates on as many as 178 items.

The GST Council on December 16 approved mandatory compliance of the E-Way Bill for the inter-state movement from February 1 to curb tax evasion, the trial run for which started on Monday.

In the 23rd GST Council meeting in November tax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products, wigs and wrist watches, were cut to provide relief to consumers and businesses amid the economic slowdown.

178 items of daily use were shifted from the top tax bracket of 28% to 18%, while a uniform 5% tax was prescribed for all restaurants, both air-conditioned and non-AC.

Here is the list of the finalised goods:

List of goods on which GST council recommended for reduction from 28% to 18%:

- 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% to 12%:

- 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% to 12%:

- 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% to 5%:

- 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 reduction from 12% to 5%:

- Articles of straw, of esparto or of other plaiting materials; basket-ware and wickerwork


List of goods on which GST rate recommended for an increase from 12% to 18%:

- Cigarette filter rods


List of goods on which GST rate recommended for reduction from 12% to 5% with no refund of unutilised input tax credit:

- Velvet fabric


List of goods on which GST rate recommended for reduction from 3% to 0.25%:

- Diamonds and precious stones


Nil GST rate:

- Vibhuti

- Parts and accessories for the manufacture of hearing aids.

- De-oiled rice bran


List of goods on which GST rate recommended for an increase from nil to 5%:

- Rice bran (other than de-oiled rice bran)