On the 10th of November, 2017, the GST Council meet for the 23rd time, and took a plethora of decisions – which aims to simplify GST and more importantly, attempts to make it more acceptable to the common man.

One of the significant changes brought about was – the pruning of the tariff heads under the 28% GST tax slab, from 224 to just 50. One of the key reasons for the same was a renewed understanding by the GST Council of what exactly can be called a luxury good or sin good or demerit good, much of which was fueled by public opinion and the viewpoints of businesses across the country. In addition, revised GST rates have been specified for goods across other GST slabs as well.

Please find below a list of the major rate changes that you need to watch out for:

GST Tax Rate Changes for Goods

28% to 18%

Food ItemsCocoa butter, fat, oil powder, cocoa butter, fat, oil powder, coffee extracts, essence and concentrates, chocolates, chewing gums, bubble gums, flour food preparations, groats, starch or malt extracts, waffles and wafers containing chocolate
Electrical EquipmentWires, cables, conductors, insulators, plugs, switches, sockets, fuses, relays, connectors, boards, panels, consoles
Construction MaterialsParticle and fibre boards, plywood, wooden boards, paving blocks, sanitary wares, floor covering, baths, showers, sinks, washbasins, seats, marble & granite slabs and tiles, ceramics, doors, windows, aluminium frames, plaster boards & sheets, articles of cement / concrete / stone / asphalt / slate / mica, ceramic flooring blocks, pipes, conduits, pipe fittings, mirrors, safety glasses, glass sheets, glass wares, rubber tubes and miscellaneous articles of rubber
Construction EquipmentFork lifts, lifting and handling equipment, bull dozers, excavators, loaders, road rollers, earth moving and levelling machinery
ChemicalsSolvent, thinners, hydraulic fluids, anti-freezing preparation, explosives, anti-knocking preparations, fireworks
Household MaterialsFurniture, mattresses, beddings, wallpapers, wall coverings, artificial flowers, foliage and artificial fruits
Travel EquipmentTrunks, suitcases, vanity cases, brief cases, travelling bags, hand bags
General HygieneDetergents, washing & cleaning preparations, room deodorisers
Personal HygieneLiquids or Creams for washing skin, shampoos, hair creams, hair dyes, henna powder or paste, pre-shave, shaving or after-shave preparations, deodorants, bath preparations, razors and razor blades
CosmeticsPerfumery, cosmetic or toilet preparations, perfumes and toilet waters, beauty or make-up preparations
Electrical & Electronic MachineryFans, pumps, compressors, lamp and light fittings, electrical apparatus for radio and television broadcasting, electrical and electronic weighing machinery, sound recording or reproducing apparatus, traffic control equipment for transports, escalators
Domestic AppliancesCutlery, stoves, cookers, non-electric appliances
Office EquipmentMulti-functional printers, cartridges, office & desk equipment
Daily UtilitiesPrimary cell and batteries, vacuum flasks, lighters
Safety EquipmentFire extinguishers and fire extinguishing charge
Health & Wellness EquipmentPhysical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment
Musical InstrumentsIncluding parts
Optical DevicesGoggles, binoculars, telescope, cinematographic cameras, projectors
Scientific EquipmentCooling towers, pressure vessels, reactors, microscopes, specified laboratory equipment, specified scientific equipment for meteorology, hydrology, oceanography, geology
Sewing EquipmentCrankshaft for sewing machine, tailor’s dummies, bearing housings, gears and gearing, ball or roller screws, gaskets
AccessoriesWrist watches, clocks, watch parts, article of apparel & clothing accessories of leather, guts, fur skin, artificial fur, saddlery and harness

28% to 12%

Wet Grindersequipped with stone as the grinding material
Tanksand other armoured fighting vehicles

28% to 5%

Aircraft ComponentsEngines, tyres and seats

 

18% to 12%

Food ItemsCondensed milk, refined sugar and sugar cubes, pasta, curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning, diabetic food
Medicinal ItemsMedicinal grade oxygen
StationeryPrinting ink
AccessoriesHand bags and shopping bags of jute and cotton, hats (knitted or crocheted), spectacles frames
Machinery & Machine PartsSpecified parts of agricultural, horticultural, forestry, harvesting or threshing and sewing machines
FurnitureWholly made of bamboo or cane

18% to 5%

Food ItemsPuffed rice chikki, peanut chikki, sesame chikki, revdi, til revdi, khaza, kazuali, groundnut sweets, gatta, kuliya, flour of potatoes put up in unit container bearing a brand name, chutney powder
ChemicalsFly ash, sulphur recovered in refining of crude, fly ash aggregate with 90% or more fly ash content

12% to 5%

Food ItemsDesiccated coconut, idli and dosa batter
TextilesNarrow woven fabric including cotton newar, coir cordage and ropes, jute twine, coir products, worn clothing
Leather GoodsFinished leather, chamois and composition leather
Fishing EquipmentNet and hooks
Construction MaterialsFly ash brick

5% to NIL

Food ItemsGuar meal, hop cones (other than grounded, powdered or in pellet form), dried vegetables, unworked coconut shell, fish frozen or dried (not put up in unit container bearing a brand name), khandsari sugar

3% to NIL

AccessoriesBangles of lac and shellac

GST Tax Rate Changes for Services

The following are the revised GST rates for specified services, which have been introduced:

Restaurants

Earlier, the GST tax rate in India for various types of restaurants were different – rates for AC restaurants was 18%, rates for non-AC restaurants was 12%, and for small eateries which were expected to come under composition scheme, the rate was 5%. However, the point to be noted is, earlier AC as well as non-AC restaurants, who were registered as regular dealers were eligible to claim ITC; post the GST Council meet, the following is how the GST slab rates for restaurants have panned out:

CategoryGST RateITC Eligibility
All stand-alone restaurants irrespective of air-conditioned or otherwise5%Without ITC
Food parcels or takeaways5%Without ITC
Restaurants in hotel premises having room tariff of less than INR 7500 / day5%Without ITC
Restaurants in hotel premises having room tariff of INR 7500 / day and above18%With Full ITC
Outdoor Catering18%With Full ITC

Protected Monuments

  • Admission to protected monuments – Exempted.

Job Work for Handicrafts

  • Job work services in relation to manufacture of handicraft goods – in respect of which the casual taxable person has been exempted from obtaining registration – 5% with full ITC

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