GST Rates Revised: Full List of Goods and Services

Here’s a guide to the first GST rate revision of 2018.

The tax rate for goods like second-hand vehicles, confectionery and bio-diesel were slashed on 18 January, as the GST Council accepted the fitment committee’s recommendations to revise rates of 29 goods. Tax rate on 53 categories of services, including tailoring services and admission to theme parks, have been lowered.

The panel at its next meeting may also consider bringing under the Goods and Services Tax (GST) purview items like petroleum and real estate which are currently outside the new regime, PTI quoted Finance Minister Arun Jaitley as saying.

Here is a list of all the goods and services that were revised:

List Of Goods Where GST Rate Will Be Reduced To 18% From 28%

• Old and used motor vehicles, medium and large
• Buses, which exclusively run on biofuels
• Rate cut if no input tax credit of central excise duty/VAT/GST availed

List Of Goods Where GST Rate Will Be Reduced To 12% From 28%

• All types of old and used motor vehicles, other than large medium and large cars and SUVs
• Rate cut if no input tax credit of central excise duty/VAT/GST availed

List Of Goods Where GST Rate Will Be Reduced To 12% From 18%

• Sugar boiled confectionery
• Drinking water packed in 20 litres bottles
• Fertilisers grade phosphoric acid
• Biodiesel
• Bamboo wood building joinery
• Drip Irrigation system including laterals, sprinklers
• Mechanical sprayers
• 12 types of biopesticides

List Of Goods Where GST Rate Will Be Reduced To 5% From 18%

• Tamarind kernel powder
• Mehendi paste in cones
• LPG supplied for supply to households by private distributors
• Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads

List Of Goods Where GST Rate Will Be Reduced To 5% From 12%

• Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork

List Of Goods Where GST Rate Will Be Reduced To 5% From 12% (With No Refund Of Unutilised Input Tax Credit)

• Velvet fabric

List Of Goods Where GST Rate Will Be Reduced To 0.25% From 3%

• Diamonds and precious stones

List Of Goods Where GST Rate Will Be Increased To 12% From 5%

• Cigarette filter rods

List Of Goods Where GST Rate Will Be Increased To 5% From Nil

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

Rate Revision In Services Categories

List Of Services Where GST Rate Will Be Reduced To 12% From 18%

• Construction of metro and monorail projects
• Common effluent treatment plants

List Of Services Where GST Rate Will Be Reduced To 5% From 18%

• Tailoring

List Of Services Where GST Rate Will Be Reduced To 18% From 28%

• Admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet

Works Contract Services Where GST Rate Will Be Reduced To 12% From 18%

• Works Contract Services provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12 percent
• If WCS attracts 5% GST, their sub-contractor also be liable for 5% GST

Other Services Changes

• To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.
• To reduce job work services rate for manufacture of leather goods and footwear to 5%
• To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services
• To levy concessional GST at 12% on the services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of building used for providing (for instance, centralised cooking or distributing) mid-day meal scheme by an entity registered under Section 12AA of IT Act.

Services Exempted

• Providing information under RTI Act, 2005.
• Legal services provided to government, local authority, governmental authority and government entity.
• Transportation of goods from India to a place outside India by air (Sunset clause up to 30 September 2018).
• Transportation of goods from India to a place outside India by sea (provided that value of such service may be excluded from the value of exempted services for the purpose of reversal of input tax credit) (Sunset clause up to 30 September 2018).
• Naval Insurance Group Fund's services by way of  life insurance to personnel of Coast Guard under the group insurance scheme of the central government retrospectively w.e.f. 1 July 2017.
• Dollar denominated services provided by financial intermediaries located in International Financial Service Centre SEZ.
• Government or local authority by way of lease of land, and supply of land or undivided share of land by way of lease or sub lease where such supply is a part of specified composite supply of construction of flats etc. and to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the  same effective  rate of GST on property built on leasehold and freehold land.
• To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification.

• To exempt services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.
• To exempt reinsurance services in respect of some exempted insurance schemes.
• Fumigation in a warehouse of agricultural produce.
• Subscription of online educational journals/periodicals by educational institutions.
• Renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education up to higher secondary or equivalent.
• To exempt services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.
• To exempt government’s share of profit petroleum and to clarify that cost petroleum is not taxable per se.
• To exempt IGST payable under Section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of  aggregate of the duties and taxes leviable under Section 3(7) of the Customs Tariff Act, 1975 read with Sections 5 & 7 of IGST Act, 2017 on part of consideration declared under Section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

Other Changes

• To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement of RCS airport from the present period of one year.
• To levy GST on the small housekeeping service providers, notified under Section 9 (5) of GST Act, who provide housekeeping service through ECO, at 5% without ITC.
• To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.
• To enhance the exemption limit of Rs 5,000 per month per member to Rs 7,500 in respect of services provided by Resident Welfare Association to its members against their individual contribution.

• To amend entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to government entity.
• To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. up to 25% of supply of goods.
• To enhance the limit to Rs 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of Rs 50,000.

(With inputs from PTI and BloombergQuint)

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