According to the official announcement made by the Goods and Services Tax council, round about 100 items GST will be reduced that include small TVs, footwear, sanitary pads etc. The move is made to benefit the consumers and MSMEs, said Union Finance Minister Piyush Goyal while announcing the cut in GST rates.
He also announced that the new rates will come into effect from July 27.
Here is the list:-
1. 28 per cent to 18 per cent
Paints and varnishes (including enamels and lacquers)
Glaziers’ putty, grafting putty, resin cements.
Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.
Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver,
hair clippers etc
Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc
Televisions upto the size of 68 cm
Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries
Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of goods.
Trailers and semi-trailers.
Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations.
2. 28 percent to 12 percent
Fuel Cell Vehicle. Further, Compensation cess shall also be exempted on fuel cell vehicle.
Refund of accumulated credit on account of inverted duty structure to fabric manufacturers: Fabrics attract
GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued.
3. 18/12/15 percent to nil:
Rakhi [other than that of precious or semi-precious material of chapter 71]
Coir pith compost
Sal Leaves siali leaves and their products and Sabai Rope
PhoolBhariJhadoo [Raw material for Jhadoo]
Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.
4. 12 percent to 5 percent:
Chenille fabrics and other fabrics under heading 5801
Phosphoric acid (fertilizer grade only).
Knitted cap/topi having retail sale value not exceeding Rs 1000
5. 18 percent to 12 percent:
Brass Kerosene Pressure Stove.
Hand Operated Rubber Roller
Zip and Slide Fasteners
6. 18 percent to 5 percent:
Ethanol for sale to Oil Marketing Companies for blending with fuel
Solid bio fuel pellets