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Recommendations GST Council’s 25th Meeting

Recommendations for Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods -As per discussions held in the 25thGST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today. These decisions of the GST Council are being communicated for general information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 18%:

S. No.Chapter/Heading/Sub-heading/Tariff itemDescription
1.87Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
2.8702Buses, for use in public transport, which exclusively run on bio-fuels.
  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 28% TO 12%:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
87All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 12%:
S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.1704Sugar boiled confectionary
2.2201Drinking water packed in 20 litters bottles
3.2809Fertilizer grade Phosphoric acid
4.29 or 38Bio-diesel
538The following Bio-pesticides, –

 

S. No.Name of the bio pesticide
1Bacillus thuringiensis var. israelensis
2Bacillus thuringiensis var. kurstaki
3Bacillus thuringiensis var. galleriae
4Bacillus sphaericus
5Trichoderma viride
6Trichoderma harzianum
7Pseudomonas fluoresens
8Beauveriabassiana
9NPV of Helicoverpaarmigera
10NPV of Spodopteralitura
11Neem based pesticides
12Cymbopogan

 

6.4418Bamboo wood building joinery
7.8424Drip irrigation system including laterals, sprinklers
8.8424Mechanical Sprayer

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.13Tamarind Kernel Powder
2.1404/3305Mehendi paste in cones
3.2711LPG supplied for supply to household domestic consumers by private LPG distributors
4.88 or any other chapterScientific 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

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5%:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.4601, 4602Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork

  1. F.     LIST OF GOODS ON WHICHGST RATE RECOMMENDED FOR INCREASE FROM 12% TO 18%:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.5601 22 00Cigarette filter rods

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 12% TO 5% WITH NO REFUND OF UNUTILISED INPUT TAX CREDIT:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.5801 37 20Velvet fabric

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 3% TO 0.25%:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.7102Diamonds and precious stones

  1. NIL GST RATE:

  1. Vibhuti
  2. Parts and accessories for manufacture of hearing aids.
  3. De-oiled rice bran

  1. LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR INCREASE FROM NIL TO 5%:

S.

No.

Chapter/Heading/Sub-heading/Tariff itemDescription
1.2302Rice bran (other than de-oiled rice bran)

  1.       CHANGES IN COMPENSATION CESS ON CERTAIN GOODS:

S.

No

Chapter/

Heading/

Sub-heading/

Tariff item

DescriptionPresent Compensation Cess RateCompensation Cess Rate Recommended
    8702Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions.15%Nil
87Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.Applicable rateNil
87All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.Applicable rateNil

  1. CHANGES IN IGST RATE RECOMMENDED ON CERTAIN GOODS:

S.

No

Chapter/

Heading/

Sub-heading/

Tariff item

DescriptionPresent IGST RateIGST Rate Recommended
88or any other chapter

 

Satellites and payloads and 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 payloads18%5%

  1. MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

S.

No

Chapter/

Heading/

Sub-heading/

Tariff item

DescriptionPresent GST RateModification/clarification Recommended
27Poly Butylene Feed Stock & Liquefied Petroleum Gas18%

 

The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.
Any chapterRail coach industryApplicable GST rateOnly the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways.
2701Coal rejects5% + Rs. 400 PMT Compensation CessCoal rejects fall under heading 2701 and attract 5% GST and Rs. 400 PMT Compensation Cess.

 

It is proposed to issue notification giving effect to the recommendations of the Council on 25th January, 2018 to be effective from 00 HRS on 25th January, 2018