On November 10, the 23rd GST Council meeting in Guwahati slashed rates from 28% to 18% on 178 items. It also relaxed penalties and tweaked rules, easing business for small and medium enterprises.
The new tax rate will come into effect from November 15.
Out of the 227 items, only 50 remain in the highest GST slab of 28%. A total of 178 items have faced the price cut, most of which will now be taxed at 18%.
Items for which GST reduced from 28% to 18%
Food and edibles: Cocoa butter, Chocolates, Chewing gum, Wafers, Non-Alcoholic Beverages
Personal care: Shampoo, Soaps (including washing), Skincare, beauty and Toilet products, Shaving products
Home care: Furniture, mattress, Suitcase, Briefcases, Lamp and light fitting, Mirror
Personal Accessories: Goggles, Wristwatch
Wood and rubber: Tyre tubes for bicycles and 3-wheelers, Wallpaper, Plywood furniture
Stone and ceramics: Articles of granite, Marble, Plaster, Slate, Ceramic goods, Glassware
Items for which GST reduced from 28% to 12%
Common kitchen appliances like stone grinders.
Items for which GST reduced from 18% to 12%
Food items: Condensed milk, refined sugar and sugar cubes, Pasta, Mayonnaise
Health: Diabetic food, Medicinal grade oxygen
Handicrafts: Hand bags and shopping bags of jute and cotton, Furniture wholly made of bamboo or cane
Items for which GST reduced from 18% to 5%
Chikki, Chutney powder, Fly ash, Flour of potatoes put up in unit container bearing a brand name, Sulphur recovered in refining of crude, AC restaurants
Items for which GST reduced from 12% to 5%
Idli, dosa batter, Fly ash brick, Fishing net and fishing hooks, Finished leather, chamois and composition leather
Items for which GST reduced from 5% to nil
Fish frozen or dried (not put up in unit container bearing a brand name), Certain dried vegetables such as sweet potatoes, maniac, Unworked coconut shell, Khandsari sugar
Goods that will be taxed at 28% GST
Demerit goods: Pan masala, Cigars and cigarettes, Tobacco products
Sin goods: Aerated water and beverages
Luxury goods: ACs, Dish washing machine, Washing machine, Refrigerators, Vacuum cleaners, Cars and two-wheelers
The GST council also decided to bring more units within the scope of a special tax payment window, the composition scheme, for small and medium enterprises (SMEs) and halved the tax rate allowed under it to 1%. The eligibility threshold for the scheme too has been raised to Rs 1.5 crore from Rs 1 crore now.
The GST rate on restaurants has been slashed to 5% for both AC and non-AC restaurants, except those in the category of five-star hotels where the tax rate remains 18%. However, benefit of tax rebates is restricted to the 18% category.
Outdoor catering will also attract 18% GST with input tax credit benefits.
In a bid to ease compliance burden for traders and businesses, fine for late filing of returns be cut to Rs 20 per day from Rs 200 for nil liability tax filers, Revenue Secretary Hasmuksh Adhia said, reported NDTV.
To know the entire list of items for which GST rate has been reduced click here.