On Saturday, July 21, 2018; the GST Council revises GST Rates. As a result, 88 items will get cheaper. These 88 items list also include footwear, refrigerator, washing machine and small screen TV. It’s a big step towards reconciling the 28% tax slab, which will bring down to only a few commodities in the past 13 months. It’s an important step in the evolution of the ‘one nation, one tax’ system, as several small-scale traders were finding it difficult to adjust with the initial GST Rates. Finance Minister believes that the GST Rate reduction will go a long way in pushing the productivity upward. In GST Council’s meeting, last year November, the Council had reduced rates of over 178 items in the 28% tax bracket.
The new GST Rates will come into effect from July 27, 2018.
Recommended Read: How GST Benefits the Common Man? आम आदमी को जीएसटी के लाभ?
GST Council Revises GST Rates – 88 Items will get Cheaper:
Following are the details of the revised GST Rates:
GST Council Revises GST Rates from 28% to 18% on the following Items:
- Daily use items such as perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium-ion batteries.
- Some electronics such as Refrigerator, washing machine, small screen TV up to 68 CM, storage water heaters.
- Paints and varnishes
GST Council Revises GST Rates from 18% to 5% on the following Items:
- Ethanol as it is the oil companies use it. This will help reduce the cost of petroleum products.
- Footwear which cost up to INR 1,000.00. As per the existing GST Rates, footwear up to INR 500.00 comes under 5% GST Slab. However, the retail sale price of over INR 500.00 is under 18% GST Slab as per the current GST Rates.
- Sanitary Napkins will come under 12% GST Rates Slab.
- Fortified milk comes under 18% GST Rates Slab. Now, it will be kept away from the new indirect tax.
- Also, stone idols, marble, wood, Rakhi without stone embedded, Phool Jhadu (Broom), Sal leaves, too have been exempted.
- Sanitary Napkins will be exempted from the taxation.
GST Rates on Service Sector:
You will have to pay 28% GST if hotel room rent is more than INR 7,500.00. For a hotel room with rent between INR 2,500.00 – INR 7,500.00, you will pay 18% GST. And, that of INR 1,000.00 – INR 2,500.00, the GST will be 12%.
GST Rates on Supply of e-Books:
The GST Rate on the supply of e-books is now 5% from 18%.