37^th GST Council meeting- GST rate changes on Goods

 

 

37^th GST Council meeting held on 20^th September,2019 at Goa took the following decisions in respect to rates relating to goods.

 

1. I.             GST rates reduction, -

 

a)      18% to 12% on parts of Slide Fasteners

 

b)      18% to 5% on Marine Fuel 0.5% (FO)

 

c)      12% to 5% on Wet Grinders (consisting stone as a grinder)

 

d)     5% to Nil on:-

 

(i)     Dried tamarind

 

(ii)   Plates and cups made up of leaves/ flowers/bark

 

e)      3% to 0.25% on cut and polished semi- precious stones

 

f)       Applicable rate to 5% on specified goods for petroleum operations undertaken under Hydrocarbon Exploration Licensing Policy (HELP)

 

g)      Exemptions from GST/IGST on:-

 

(i)     imports of specified defence goods not being manufactured indigenously (upto 2024)

 

(ii)   supply of goods and services to FIFA and other specified persons for organizing the Under-17 Women’s Football World Cup in India.

 

(iii) supply of goods and services to Food and Agriculture Organisation (FAO) for specified projects in India.

 

1. II.               GST rates have been recommended to be increased from, -

 

a)      5% to 12% on goods, falling under chapter 86 of tariff like railway wagons, coaches, rolling stock (without refund of accumulated ITC). This is to address the concern of ITC accumulation with suppliers of these goods.

 

b)      18% to 28% +12% compensation cess on caffeinated Beverages

 

1. III.                Measures for Export Promotion

 

a)      Exemption from GST/IGST:-

 

(i)                 at the time of import on Silver/Platinum by specified nominated agencies

 

(ii)               supply of Silver/Platinum by specified nominated agency to exporters for exports of Jewellery,

 

b)      Inclusion of Diamond India Limited (DIL) in the list of nominated agencies eligible

 

for IGST exemption on imports of Gold/ Silver/Platinum so as to supply at Nil GST to Jewellery exporters.

 

IV.         A uniform GST rate of 12% on Polypropylene/Polyethylene Woven and Non- Woven Bags and sacks, whether or not laminated, of a kind used for packing of goods (from present rates of 5%/12%/18%)

 

 

1. V.                   GST concession in certain cases for specific period: -

 

a)      Exemption to Fishmeal for the period 01.07.17 to 30.09.19. There were doubts as regards taxability of fishmeal in view of the interpretational issues. However, any tax collected for this period shall be required to be deposited.

 

 

b)      12% GST during the period 1.07.2017 to 31.12.2018, on pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery.

 

 

VI.        Passenger vehicles of engine capacity 1500 cc in case of diesel, 1200 cc in case of petrol and length not exceeding 4000mm designed for carrying upto 9 persons attract compensation cess of 1% for petrol and 3% for diesel vehicle. Council recommended same compensation cess rate for vehicles having these specifications (length and engine capacity) but designed for carrying more than 10 persons but upto 13 persons. (Presently these vehicles attract compensation cess at the rate of 15%)

 

VII.       Other miscellaneous Changes:

 

• Aerated drink manufacturers shall be excluded from composition scheme.

 

• Option to pay GST at the rate of 18% on transaction value at the time of disposal of specified goods for petroleum operations (on which concessional GST rate of 5% was paid at the time of original supply) provided that the goods are certified by Directorate General of Hydrocarbons (DGH) as non-serviceable.