23rd GST Council Meeting - GST Rate Changes for Goods

In the 23rd GST Council Meeting, GST rate reduction for various goods and services was announced. A major highlight of the 23rd GST Council Meeting was the reduction of GST rates for various goods listed under the 28% slab. The GST rates changes will tremendously reduce the tax burden on the common man and boost the economy. In this article, we look at a summary of GST rate changes announced in the 23rd GST Council Meeting held on 10th November 2017.

Want to know about other major changes announced at the 23rd GST Council Meeting?

Details of GST Return Due Date Changes announced in the 23rd GST Council Meeting Details of GST Rate Changes for Services and Service Providers announced in the 23rd GST Council Meeting Details of GST Composition Scheme Changes announced in the 23rd GST Council Meeting

GST Rate Reduced from 28% to 18%

For the following goods, the GST rate has been reduced from 28% to 18%. After the proposed change, only 50 items will attract GST at 28% rate. Majority of the items for which GST rate was reduced from 28% to 18% are building materials, personal care items and equipments.

Building Materials

Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors.
Electrical boards, panels, consoles, cabinets etc for electric control or distribution.
Particle/fibre boards and plywood.
Article of wood, wooden frame, paving block.
Sanitary ware and parts thereof of all kind
Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic
Slabs of marbles and granite
Goods of marble and granite such as tiles
Ceramic tiles of all kinds
Fans, pumps, compressors
Lamp and light fitting
Door, windows and frames of aluminium.
Articles of plaster such as board, sheet
Articles of cement or concrete or stone and artificial stone
Articles of asphalt or slate
Articles of mica
Ceramic flooring blocks, pipes, conduit, pipe fitting Wallpaper and wall covering
Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware

Furniture and Home Decorations

Furniture, mattress, bedding and similar furnishing
Miscellaneous articles such as vacuum flasks, lighters
Trunk, suitcase, vanity cases, briefcases, travelling bags and other hand bags, cases
Articles of cutlery, stoves, cookers and similar non electric domestic appliances
All musical instruments and their parts
Artificial flowers, foliage and artificial fruits
Office or desk equipment
Fire extinguishers and fire extinguishing charge
Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment

Personal Care Items

Detergents, washing and cleaning preparations
Liquid or cream for washing the skin
Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;
Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers
Perfumes and toilet waters
Beauty or make-up preparations
Razor and razor blades

Electronic & Office Stationeries

Primary cell and primary batteries
Multi-functional printers, cartridges
Electrical, electronic weighing machinery
Electrical apparatus for radio and television broadcasting
Sound recording or reproducing apparatus
Signalling, safety or traffic control equipment for transports
Goggles, binoculars, telescope
Cinematographic cameras and projectors, image projector
Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology

Clothing & Personal Items

Wrist watches, clocks, watch movement, watch cases, straps, parts
Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal

Equipment, Firework & Industrial Items

Fork lifts, lifting and handling equipment
Bull dozers, excavators, loaders, road rollers
Earth moving and levelling machinery
Escalators, Cooling towers, pressure vessels, reactors
Crankshaft for a sewing machine, tailor's dummies, bearing housings, gears and gearing; ball or roller screws; gaskets
Explosive, anti-knocking preparation, fireworks
Rubber tubes and miscellaneous articles of rubber
Solvent, thinners, hydraulic fluids, anti-freezing preparation

Food and Food Preparations

Cocoa butter, fat, oil powder,
Extract, essence ad concentrates of coffee, miscellaneous food preparations
Chocolates, Chewing gum / bubble gum
Malt extract and food preparations of flour, groats, meal, starch or malt extract
Waffles and wafers coated with chocolate or containing chocolate

GST Rate Reduced from 28% to 12%

For the following goods, GST rate has been reduced from 28% to 12%:

Wet grinders consisting of stone as grinder
Tanks and other armoured fighting vehicles

GST Rate Reduced from 18% to 12%

For the following goods, GST rate has been reduced from 18% to 12%:

Condensed milk
Refined sugar and sugar cubes
Pasta
Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning
Diabetic food
Medicinal grade oxygen
Printing ink
Hand bags and shopping bags of jute and cotton
Hats (knitted or crocheted)
Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
Specified parts of sewing machine
Spectacles frames
Furniture wholly made of bamboo or cane

GST Rate Reduced from 18% to 5%

For the following goods, the GST rate has been reduced from 18% to 5%:

Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
Flour of potatoes put up in unit container bearing a brand name
Chutney powder
Fly ash
Sulphur recovered in refining of crude
Fly ash aggregate with 90% or more fly ash content

GST Rate Reduced from 12% to 5%

For the following goods, GST rate has been reduced from 12% to 5%:

Desiccated coconut
Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit] iii. Idli, dosa batter
Finished leather, chamois and composition leather
Coir cordage and ropes, jute twine, coir products
Fishing net and fishing hooks
Worn clothing
Fly ash brick

GST Rate Reduced from 5% to 0%

For the following goods, GST rate has been reduced from 5% to 0%:

Guar meal
Hop cone (other than grounded, powdered or in pellet form)
Certain dried vegetables such as sweet potatoes, maniac
Unworked coconut shell
Fish frozen or dried (not put up in unit container bearing a brand name)
Khandsari sugar

Other GST Rate Changes for Goods

GST rates on aircraft engines has been changed from 28% or 18% to 5%. Also, the GST rate for aircraft tyres has been changed from 28% to 5% and aircraft seats from 28% to 5%. The GST rate on bangles of lac/shellac has also been changed from 3% GST rate to Nil. Click here to read on Time of Supply of Goods

GST Exemption for Goods Announced in the 23rd GST Council Meeting

IGST is now not applicable on imports of lifesaving medicine supplied free of cost by overseas supplier for patients, subject to certification by DGHS of Centre or State and certain other conditions. IGST is now not applicable on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount. To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to distinct person under section 25(4) for use in the production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act. IGST will not be applicable on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions. GST will not be applicable on specified goods, such as scientific or technical instruments, software, prototype supplied to a public-funded research institution or a university or IISc, or IITs or NIT. More professional items can now be imported on a temporary basis without GST by accredited press persons visiting India to cover certain events, broadcasting equipment, sports items, testing equipment, under ATA carnet system. These goods are to be re-exported after the specified use is over.

Clarification of GST Rate

In addition to the above GST rate changes and exemptions, the GST Council also announced certain clarification to improve ease of doing business in India as follows:

Inter-State Transfer of Equipment

Inter-state movement of goods like rigs, tools, spares and goods on wheel like cranes, not being in the course of furtherance of supply of such goods, does not constitute a supply. This clarification gives major compliance relief to industry as there is frequent inter-state movement of such kind in the course of providing services to customers or for the purposes of getting such goods repaired or refurbished or for any self-use. Service provided using such goods would, in any case, attract applicable tax.

Raw Cotton Purchase

GST on the supply of raw cotton by agriculturist will be liable for GST, which is to be paid by the recipient of such supply under reverse charge.

Supply of E-Waste Products

Supply of e-waste attracts 5% GST rate. Concerned notification to be amended to make it amply clear that this rate applies only to e-waste discarded as waste by the consumer or bulk consumer.

Find GST rate for all goods and services.