Recommendations made by GST council regarding Rate Changes

Dec 26, 2018 | by Avantis RegTech Legal Research Team

The GST Council in the 31st meeting held on December 22, 2018 took following decisions relating to changes in GST rates on goods and services. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.

I.                    GST rate reduction on goods which were attracting GST rate of 28% :

A.      28% to 18%

·         Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483  Monitors and TVs of upto screen size of 32 inches

·         Re-treaded or used pneumatic tyres of rubber;

·         Power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium ion battery.

·         Digital cameras and video camera recorders

·         Video game consoles and other games and sports requisites falling under HS codel 9504.

B.      28% to 5%

Parts and accessories for the carriages for disabled persons.

II.                  GST rate reduction on other goods:

A.      18% to 12%

Cork roughly squared or debagged

 Articles of natural cork

Agglomerated cork

B.      18% to 5%

 Marble rubble

C.      12% to 5%

Natural cork

Walking Stick

Fly ash Blocks

D.      12% to Nil:

Music Books

E.       5% to Nil

Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container.

Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

III.                GST on solar power generating plant and other renewable energy plants

·         GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture. Other goods or services used in these plants attract applicable GST.

·         Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.

·         To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.

Reduction in GST rates/exemptions on certain services:




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