RECENT CHANGES MADE ON GST

GST Reduction: Only 50 Items Now Remain In The Highest 28% GST Slab

On November 10, the 23rd GST Council meeting in Guwahati slashed rates from 28% to 18% on 178 items. It also relaxed penalties and tweaked rules, easing business for small and medium enterprises.The new tax rate will come into effect from November 15.

Reductions

Out of the 227 items, only 50 remain in the highest GST slab of 28%. A total of 178 items have faced the price cut, most of which will now be taxed at 18%.

tems for which GST reduced from 28% to 18%

Food and edibles: Cocoa butter, Chocolates, Chewing gum, Wafers, Non-Alcoholic Beverages
Personal care: Shampoo, Soaps (including washing), Skincare, beauty and Toilet products, Shaving products
Home care: Furniture, mattress, Suitcase, Briefcases, Lamp and light fitting, Mirror
Personal Accessories: Goggles, Wristwatch
Wood and rubber: Tyre tubes for bicycles and 3-wheelers, Wallpaper, Plywood furniture
Stone and ceramics: Articles of granite, Marble, Plaster, Slate, Ceramic goods, Glassware

Items for which GST reduced from 28% to 12%

Common kitchen appliances like stone grinders.

Items for which GST reduced from 18% to 12%

Food items: Condensed milk, refined sugar and sugar cubes, Pasta, Mayonnaise
Health: Diabetic food, Medicinal grade oxygen
Handicrafts: Hand bags and shopping bags of jute and cotton, Furniture wholly made of bamboo or cane.

tems for which GST reduced from 18% to 5%

Chikki, Chutney powder, Fly ash, Flour of potatoes put up in unit container bearing a brand name, Sulphur recovered in refining of crude, AC restaurants

Items for which GST reduced from 12% to 5% 

Idli, dosa batter, Fly ash brick, Fishing net and fishing hooks, Finished leather, chamois and composition leather

Items for which GST reduced from 5% to nil

Fish frozen or dried (not put up in unit container bearing a brand name), Certain dried vegetables such as sweet potatoes, maniac, Unworked coconut shell, Khandsari sugar

Goods that will be taxed at 28% GST

Demerit goods: Pan masala, Cigars and cigarettes, Tobacco products
Sin goods: Aerated water and beverages
Luxury goods: ACs, Dish washing machine, Washing machine, Refrigerators, Vacuum cleaners, Cars and two-wheelers

Other reliefs

The GST council also decided to bring more units within the scope of a special tax payment window, the composition scheme, for small and medium enterprises (SMEs) and halved the tax rate allowed under it to 1%. The eligibility threshold for the scheme too has been raised to Rs 1.5 crore from Rs 1 crore now.
The GST rate on restaurants has been slashed to 5% for both AC and non-AC restaurants, except those in the category of five-star hotels where the tax rate remains 18%. However, benefit of tax rebates is restricted to the 18% category.
Outdoor catering will also attract 18% GST with input tax credit benefits.
In a bid to ease compliance burden for traders and businesses, fine for late filing of returns be cut to Rs 20 er day from Rs 200 for nil liability tax filers, Revenue Secretary Hasmuksh Adhia said.

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