GST New Rates | Changes in Rule/Rates for Small Traders on 27 items

GST New Rates

GST New RatesOn Friday, The Goods and Services tax (GST) council slashed the GST rates on 27 items and 12 services. Here’s a list of GST New Rates to assist our readers in better way. This new decision has given a great relief to exporters, small and medium enterprises who were facing loss after the introduction of GST in the Indian market. This tremendous Change in Rule/Rates for Small and medium Traders will surely boost up the economic productivity of the country.

The Council also came to a decision that for July by 10 October and for August by 18 October, tax refund claims of exporters will be removed. The council has announced a 0.1% GST rate for merchant exporters, which in turn offers relief from the GST rates. As per the notification, GST New Rates will come into force over the next one week.

Arun Jaitley said, “Big players pay the largest chunk of GST, while small taxpayers who pay nominal or nil tax face high compliance impact. We are relaxing their compliance burden”. The Council has also slashed the tax rate on a few services like as job works in certain sectors from 12% to 5%.

GST New Rates

Here’re some of the items whose rates have been slashed:

Here are few items which has experienced rate changed and are likely to increase the productivity of small traders.

  • Sliced dried mangoes reduced from 12% to 5%
  • Khakra and plain chapattis reduced to 5%
  • ICDS food packets for children reduced from 18% to 5%
  • Unbranded namkeen down to 5%
  • Unbranded ayurvedic medicines down from 12% to 5%
  • Plastic and rubber waste down from 18% to 5%
  • Paper waste from 12% to 5%
  • Yarn brought from 18% to 12%
  • Stationery imposed GST at 28% now at 18%
  • Diesel engine parts – brought down to 18% from 28%
  • Services – zari job work – down from 12% to 5%
  • Stones used for various purposes will be now taxed at 18% instead of 28%

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GST New Rates on Job Work Services:

  • Job work services relating to all items listed in Chapter 71 like imitation jewellery: 5%
  • Job work services concerning food and food products mentioned under Chapters 1 to 22 of the HS Code (processed milk into packets not included): 5%
  • Job work services in relation to products displayed under Chapters 23 of the HS Code except dog and cat food put up for retail sale: 5%
  • Job work relating to manufacture of umbrella: 12%
  • Job work with respect to manufacture of clay bricks listed under CTH 69010010: 5%
  • Services provided through printing on job work basis or on goods in relation to printing of all goods mentioned under Chapter 48 or 49, which attract GST @ 5% or no GST rate charge: 5%
  • Services delivered through printing on job work basis or on goods in relation to printing of goods described under Chapter 48 or 49: 18%
  • Services provided through printing on job work basis or on goods in relation to printing of all goods displayed under Chapter 48 or 49, which attract GST @ 12% – 12%
  • Services provided through printing in relation to printing of all goods listed under Chapter 48 or 49, which attract GST @ 5% or no GST charged, where only the content and the physical inputs is delivered by the publisher:12%
  • Services provided through printing of all goods mentioned under Chapter 48 or 49, which link GST @12%, where only content and physical inputs is delivered by the publisher: 12%
  • Services provided through printing of all goods falling under Chapter 48 or 49 which attract GST @18% or above, where only content and physical inputs is delivered by the publisher:18%
  • To issue a explanation with regard to classification of printing products/services.

Read Out: 11 Benefits of GST in India

Arun Jaitley said after the meeting that the council has also requested a panel of state ministers to inspect whether the 18% GST charge imposed on air-conditioned restaurants could be lowered. Arun Jaitley’s council has made it clear that they will continue with two pre-GST era schemes, allowing till the month of March 2018, duty-free sourcing of materials for export production. This in turn will boost up the liquidity of exporters.

Note: This is all about GST New Rates and other crucial details. For more updated facts, stay connected with us through our web portal.

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