Current Affairs

GST rates reduced on 29 Goods and 53 Services

The GST Council headed by Finance Minister Arun Jaitley cut the tax rate on 29 goods and 53 categories of services such as education, insurance, entertainment and tourism which will now turn cheaper.
GST council reduces tax rates on 29 goods and 53 categories of services
  • The Council cut GST rate on second-hand medium and large cars and SUVs from 28 per cent to 18 per cent and on other old and used motor vehicles to 12 per cent.
  • Tax on diamonds and precious stones was slashed to 0.25 per cent from current 3 per cent.
  • Tax rate on sugar boiled confectionery (18% to 12%), drinking water packed in 20-litre bottles (18% to 12%), tamarind kernel power (18% to 5%), mehendi paste in cones (18% to 5%), articles of straw, velvet fabric (12% to 5%)and rice bran(exempted) was also cut.
  • The GST rate on services such as admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, has been reduced from 28% to 18%.
  • GST Council also decided to increase the threshold limit for exemption for all theatrical performances like music, dance, drama, orchestra, folk or classical arts and all other such activities in any Indian language in theatre GST from Rs. 250 to 500 per person.
  • Besides, it decided to allow input tax credit (ITC) for services in the same line of business at the GST rate of 5% in case of tour operator services.
  • The GST rate on tailoring has been reduced from 18% to 5%. GST on job work services rate for manufacture of leather goods and footwear has been cut to 5%.
  • To ease the burden on households it has been decided to raise the exemption limit of GST from Rs 5000 per month per member to Rs 7500 for services provided by resident welfare associations to their members against their individual contribution.
  • Services relating to admission to, or conduct of examination provided to all educational institutions have been exempted from GST. 
  • Services provided by school buses have also been exempted from GST.
  • The GST rate on transportation of petroleum crude and petroleum products such as petrol, diesel and jet fuel has been cut from 18% to 5% without ITC (input tax credit) and 12% with ITC. GST rates on work contracts for government construction projects has been reduced from 18% to 12%.
  • GST on services of treatment of effluents, reduced from 18% to 12%.
  • The Council, in its 25th meeting also discussed process to make filing of GST returns simpler with just one return to be filed every month.
GST rates reduced on 29 Goods and 53 Services GST rates reduced on 29 Goods and 53 Services Reviewed by Unknown on January 20, 2018 Rating: 5

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