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37th GST Council Updates: Changes in Rate and Limits

GST Rates and limits changes

Exemptions Changes

  • Supply of goods and services to FIFA and other specified persons for U17 Women’s World Cup in India exempted from GST.
  • Insurance provided to Central Armed Paramilitary Forces to be exempt from GST.
  • Prospectively, warehousing of certain GSTagricultural products has been exempted from GST.
  • Supply of silver, platinum from specified agencies to be exempt from GST
  • Defence goods not being manufactured indigenously has been exempted from GST/IGST
  • Exemption from GST/IGST is being given on import of specified defence goods not being manufactured indigenously, it’s being extended only up to 2024.
  • Defence goods not being manufactured indigenously has been exempted from GST/IGST. However, the proposal was to increase GST rates on such beverages from 18 percent to 28 percent and impose an additional cess of 12 percent.

GST rate Changes

  • Hotels with room tariff of Rs 1000 or less will attract nil GST. Those with Rs 1,000- Rs 7,500 will attract 12 percent GST. Hotels with a tariff of Rs 7,500 and above will be taxed at 18 percent.
  • In a major boost to gems and jewellery sector, GST on cut and polished semi-precious items reduced to 0.25 percent from 3 percent.
  • Uniform rate of 12 percent will be levied for woven and non-woven polyethylene bags
  • GST rates cut down for outdoor catering to 5% from 18%
  • Railway wagons, coaches, rolling stocks to be taxed at 12% instead of earlier 5%
  • GST rate on slide fasteners has been reduced from 18% to 12%
  • Marine fuel rate reduced from 18% to 5%
  • 12% to 5% on wet grinders consisting of stone as a grinder
  • 5% to nil on dried tamarind
  • GST Council cuts tax rates on job work in the diamond industry to 1.5% from 5%
  • Uniform GST rate of 12% to be levied on polypropylene bags and sacks used for the packing of goods
  • Rates reduced for cups and plates made from leaves and hides to nil
  • 18% GST shall be levied on almond milk
  • GST rate hiked on railway wagon, coaches from 5% to 12%

Cess Changes

  • GST Council recommends lower 12% cess on 1,500 cc diesel, 1,200 cc petrol vehicles with the capacity to carry up to 13 people
  • Caffeinated drinks will attract 28 percent with an additional cess of 12 percent

Composition Scheme Changes:

  • Aerated drinks manufacturers no longer part of composition scheme

Note: All rate changes would be effective from 1 October 2019

Author: Niranjan Reddy

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