REDUCTION OF RATE OF TAX OR EXEMPTION GRANTED FOR SUPPLY OF GOODS WITH EFFECT FROM 1.1.2019 ON CERTAIN ITEMS
The Goods and Services Tax
Act, 2017 came into force in India with effect from 1.7.2017.
The Central Government is
reducing the rate of tax on certain goods or granting exemption on certain
goods in the GST Council Meetings held time to time.
In the GST Council meeting
held on 22.12.2018 at New Delhi, the GST Council has taken certain decisions
which will come into force with effect from 1.1.2019 at 0.00 hours.
The relevant Press Release is
given below for ready reference:
PRESS RELEASE DATED 22.12.2018
Recommendations
made during
31st Meeting of the GST
Council
held
on 22nd
December, 2018 (New Delhi)-Rate changes
GST
Council in the 31st meeting
held on 22nd December, 2018 at New Delhi took following
decisions relating to
changes in GST rates on goods and services. The decisions of the GST Council have been presented in this note for easy
understanding. The same would be given
effect
to through Gazette notifications/ circulars
which shall have force of
law.
I. GST
rate reduction on
goods which were attracting
GST
rate of 28% : A. 28% to
18%
l Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code
8483
l Monitors and TVs of upto screen size of 32
inches
l Re-treaded or used pneumatic
tyres
of rubber;
l Power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This
will bring parity in
GST
rate of power bank and
lithium
ion battery.
l Digital
cameras and video
camera recorders
l Video game consoles and other games and sports requisites falling under HS code
9504.
B. 28% to 5%
l Parts and
accessories for the
carriages for
disabled persons
II. GST
rate reduction on
other goods,-
A. 18% to 12%
l Cork roughly squared
or debagged
l Articles
of natural cork
l Agglomerated
cork
B. 18% to 5%
· Marble rubble
C. 12% to
5%
l Natural cork
l Walking Stick
l Fly ash Blocks
D. 12% to
Nil:
l Music Books
E. 5% to Nil
l Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded
and put in a unit container
l Vegetable provisionally preserved (for example by sulphur
dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
III. GST on solar power generating
plant
and other renewable
energy plants
l GST rate of
5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar
power based devices, solar power
generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff].
Other goods or services
used
in these plants attract applicable
GST.
l Certain
disputes
have arisen regarding
GST
rates where specified goods
attracting
5% GST are supplied along with services of construction etc and other
goods for solar power
plant.
l
To resolve the dispute the Council has recommended that in all such cases, the
70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of
such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST
rate.
Reduction in
GST rates/exemptions
on services:
l
GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18%
and on cinema tickets upto
Rs. 100 from 18% to 12%.
l GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
l Services supplied by banks to Basic Saving Bank Deposit (BSBD) account
holders under Pradhan
Mantri
Jan
Dhan Yojana (PMJDY) shall be exempted.
l Air travel
of pilgrims
by non-scheduled/charter
operations, for religious
pilgrimage facilitated by
the Government of India under bilateral arrangements shall attract the
same rate of GST
as applicable to similar flights in Economy
class (i.e. 5% with ITC
of input services).
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