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