25th GST council meet updates

Yesterday on 18th January 2018 25th GST council meet held at Vigyan Bhavan chaired by finance minister Arun Jaitley. This meeting conducted to discuss some major issues of GST. Here are the outcomes of this meeting:

Outcomes

  • GST council cut rates on 29 products and 53 services. These new rates will be implemented from 25th January 2018.
  • Council members also discuss on E-way Bill. E-way bill system will go through a test from January 25 and will be implemented on a mandatory basis from Feb 1.
  • No discussion on Petroleum & Real-estate
  • GSTR 3B return filing will continue for the time being
  • Total collection under composition scheme is only Rs.307 Crore

Here are full list revised rates for various products and services:

On Products

  • GST council cut rates on second-hand medium and SUVs from 28% to 18%
  • On old & used motorcycles from 28% to 12%
  • Cut rates on LPG distributors from 18% to 5%
  • Cut rates on buses run on bi-fuel from 28% to 18%
  • GST council trim rates on diamonds from 3% to 0.25%
  • Trim rates on sugar boil confectionary from 18% to 12%
  • Cut rates on Mehendi cones from 18% to 5%
  • On drinking water packed in 20 liters bottle from 18% to 12%
  • Cut rates on irrigation system which includes sprinklers & laterals from 18% to 12%
  • Trim rates on Cigarette rods from 18% to 12%
  • Rice Bran included to 0% category from 5%
  • Cut rates on velvet fabrics from 12% to 5%
  • Rate on Bamboo wood building joinery comes down to 12% from 18%
  • Cut rates bio-pesticides and bio-diesel from 18% to 12%
  • Vibhuti also exempted from GST

On Services

  • GST council exempted legal services provided to the Government
  • Cut rates on tailoring services from 18% to 5%
  • GST tax rate on admission to theme parks, water parks, Joyrides etc fall down to 18% from 28%
  • Cut rates on construction of metro and monorail projects from 18% to 12%
  • GST council exempted tax on transportation of goods from India to other countries by air and by sea
  • Cut rates on transportation of petroleum crude and petroleum products from 18% to 5%(without ITC) and from 18% to 12% (with ITC)

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