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Ayurvedic Products GST rates Revised from 12% to 5%! Know what else have been changed.

On 6th of October 2017 the GST council of India took some important decisions keeping in mind the problems faced by a common man. Tax rate slashing is something that is happening in almost all of the council meetings, so far 22 council meetings have been held by the Finance Minister Mr. Arun Jaitley at various locations across India. Majority of these meetings primary agenda would be to address the problems and situations faced by an average Indian businessman and consumers and various level purchasing different items.

So, understanding the needs and necessities 42 Goods and Services rates have been changed by the GST council of India. Important goods include Ayurvedic products, Homeopathy medicines, Poster Color, Plastic waste, Rubber and much more from Goods. Important Services include manufacturing of Umbrella, Manufacturing of clay brick and much more.

Let’s have a detailed look at the changes made in the 42 goods & Services.

S.No Particular Old Rate New Rate
1 Mango sliced dried 12% 5%
2 Khakra and Plain Chapati 12% 5%
3 Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government, subject to specified conditions 18% 5%
4 Namkeens other than those put up in unit container and, –
– Bearing a registered brand name; or
– Bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily
12% 5%
5 Imposing GST only on the net quantity of superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB] 18% 18% [Clarification to be Issued]
6 Ayurvedic, Unani, Siddha, Homeopathy medicines, other than those bearing a brand name 12% 5%
7 Poster Colour 28% 18%
8 Modelling paste for children amusement 28% 18%
9 Plastic waste, parings or scrap 18% 5%
10 Rubber waste, parings or scrap 18% 5%
11 Hard Rubber waste or scrap 28% 5%
12 Hard Rubber waste or scrap 12% 5%
13 Duty credit scrips 5% Nil
14 Sewing thread of manmade filaments, whether or not put up for retail sale 18% 12%
15 All synthetic filament yarn, such as nylon, polyester, acrylic, etc. 18% 12%
16 All artificial filament yarn, such as viscose rayon, Cuprammonium, 18% 12%
17 Sewing thread of manmade staple fibres 18% 12%
18 Yarn of manmade staple fibres 18% 5%
19 Real Zari 12% 5%
20 All goods falling under heading 6802 [other than those of marble and granite or those which attract 12 percent GST] 28% 18%
21 Cullet or other waste or scrap of Glass 18% 5%
22 Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal 28% 18%
23 Plain Shaft Bearing 8483 28% 18%
24 Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP 28% 18%
25 Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps 28% 18%
26 E-Waste 28/18 % 5%
27 Biomass Briquettes 18% 5%

IGST Exemption on Imports of Goods – 3:

S.No Description Present Applicable IGST Rate Recommended IGST Rate
1 IGST exemption on imports of rigs imported for oil / gas exploration and production projects under lease, subject to the following conditions that:
(i) Integrated tax leviable under section 5(1) of the IGST Act, 2017 on supply of service covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017;
(ii) The rig is not sold without the prior permission of the Commissioner of Customs of the port of importation;
(iii) to re-export the goods within 3 months from the expiry of the period for which they were supplied under a transaction covered by item 1(b) or 5(f) of Schedule II of the Central Goods and Services Tax Act, 2017 out of India;
(iv) to pay on demand an amount equal to the integrated tax payable on the said goods but for the exemption under this notification in the event of violation of any of the above conditions and applicable interest.
5% Nil
2 Exemption from IGST on imports of medicines supplied free by international agencies like UNICEF, WHO, Red Cross etc 12% / 5% Nil
3 A. Exemption from IGST on imports of bona fide gifts upto CIF value limit of Rs. 5000 imported through post or air. 28% Nil

The Council also rationalised GST rates on 12 job work services:

  1. Job work services in relation to all products falling in Chapter 71 (including imitation jewellery) – 5%
  2. Job work services in relation to food and food products falling under Chapters 1 to 22 of the HS Code (except packing of processed milk into packets) – 5%
  3. Job work services in relation to products falling under Chapters 23 of the HS Code except dog and cat food put up for retail sale – 5%
  4. Job work in relation to manufacture of umbrella – 12%
  5. Job work in relation to manufacture of clay bricks falling under CTH 69010010 – 5%
  6. Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil – 5%
  7. Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 12% – 12%
  8. Services by way of printing on job work basis or on goods belonging to others in relation to printing of goods falling under Chapter 48 or 49, other than those covered by (6) and (7) above – 18%
  9. Services by way of printing in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer – 12%
  10. Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @12%, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer – 12%
  11. Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @18% or above, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer – 18%
  12. To issue a clarification with regard to classification of printing products/services.

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Content Courtesy:

Krishna Sriteja.D

GST Content Specialist | Tax Technology Enthusiast

dksriteja@udyogsoftware.com

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