After a clamour for GST tax rate cuts from across industries to tackle sluggish demand, the 37th GST Council meet held on Friday in Goa, after hours of deliberation, reduced tax rates on a number of items. So, as the revised tax rate announced yesterday come into effect from October 1, 2019, here is a complete list of items that get cheaper and expensive from then:
This is what will become cheaper after new GST rates are implemented:
1. Hotel stay to become cheaper as Council cuts GST rate on hotel tariffs ranging between Rs. 1000 to Rs. 7500 per night to 12% and for tariffs over Rs. 7500, the rate has been revised lower to 18%. For hotel tariffs up to Rs. 1000, there will be no GST.
2. For slide fasteners, the rate has been slashed to 12% from 18%
3. In respect of the job work involved in the diamond industry, the new GST rate to be levied is 1.5% as against the current 5%.
4. Marine fuel will be taxed at a reduced rate of 5% in comparison to the current 18%
5. Dried tamarind will attract no GST as against the current 5%
6. On wet grinders with stone as a grinder, the new GST rate will be 5% as against the current 12%
7. On cups, plates that are made using flowers, leaves and other eco-friendly material, there will be no GST
8. Compensation cess on vehicles running on petrol with capacity to carry 10-13 persons has been slashed to 1% from the earlier 3%, while for diesel vehicle it has been made 3%. Earlier, it was 15 %
9. On cut and polished semi-precious stones, the GST @ 0.25% will be charged in comparison to current 3% while there will be no GST for jewellery exports
10. Supply of machine work will attract rate of 12% from current 18%
What becomes expensive
1. Caffeinated drinks to turn costly as the GST increased to 28% from 18%. Also, there will be an additional 12% compensation cess. Further aerated drinks will no longer be part of compensation scheme
2. For sacks and other polypropylene bags, uniform GST at the rate of 12% will be charged
3. On railway wagon coaches, higher GST of 12% will be levied in contrast of the current 5%
1. Import of specific defence equipment not manufactured indigenously has been exempted from GST/IGST. The relaxation has been given only till 2024
2. Supply of goods & services to FIFA and other specified persons also exempted for U17 Women's World Cup in India
3. Silver imported for re-export as jewellery also exempted from the GST ambit
The Council also made filing of annual return optional for small taxpayers below the annual threshold of Rs 2 crore for FY18 and FY19.
While for the auto and biscuits, there has been effected no GST relief which was largely sought given the large-scale slowdown in these two sectors.