GST rate cut: Consumer electronics, kitchen appliances, leather items, footwear get cheaper

GST rate cut: Consumer electronics, kitchen appliances, leather items, footwear get cheaper

Apart from ratonalising tax rates under the Goods and Services Tax, the GST Counil also approved simpler tax GST return filing and two simplified forms - Sugam and Sahaj - for B2C and B2B traders.

In its 28th meeting, the GST Council gave its approval to slash tax rates on over 100 items that were in the highest 28 per cent tax bracket under the Goods and Services Tax. GST rates on articles including consumer durables like smaller television sets, refrigerators, washing machines, paints and varnishes, lithium ion batteries, and more were brought down from 28 per cent to 18 per cent. The tax council also rationalised rates on several other items too.

The GST Council also exempted sanitary napkins from taxes under the GST regime. The Council also approved Nandan Nilekani's recommendations for simplifying GST return procedure with minor tweaks. Now, traders with annual turnover less up to Rs 5 crore will have to file their returns every quarter, whereas those above the threshold will have to file returns every month. The taxes incurred under GST will have to be paid every month, though. Two simplified forms - Sugam and Sahaj - were also approved by the GST Council for B2C and B2B taxpayers for easier return filing.

The most-talked about decision, though, was the tax rate cuts passed by the GST Council. The changes will come into effect from July 27. These rate cuts are expected to cost Rs 7,000 crore to exchequer.

Below is the complete list of items with rationalised GST rates:

28% to 18%

  • 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.
  • Washing machines
  • Lithium-ion batteries
  • Vacuum cleaners
  • 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 measuring up to 68 cm
  • Special purpose motor vehicles, like 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

28% to 12%

  • Fuel Cell Vehicle. Further, Compensation cess shall also be exempted on fuel cell vehicle.

18%/12%/5% to Nil

  • Stone/Marble/Wood Deities
  • Rakhi (other than that of precious or semi-precious material of chapter 71)
  • Sanitary Napkins,
  • Coir pith compost
  • Sal leaves, products made from sal leaves, and Sabai Rope
  • Phool Bhari Jhadoo (Raw material for Jhadoo)
  • Khali dona
  • Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd (SPMCIL) to Ministry of Finance.

12% to 5%

  • Chenille fabrics and other fabrics under heading 5801
  • Handloom dari
  • Fertilizer grade phosphoric acid
  • Knitted cap priced up to Rs 1000

18% to 12%

  • Bamboo flooring
  • Brass Kerosene Pressure Stove
  • Hand Operated Rubber Roller
  • Zip and Slide Fasteners

18% to 5%

  • Ethanol for sale to Oil Marketing Companies for blending with fuel
  • Solid bio fuel pellets
  • Footwear priced up to Rs 1000 (Earlier, footwear priced up to Rs 500 used to attract GST at 5%)

GST rates have been recommended to be brought down for specified handicraft items (as per the definition of handicraft, as approved by the GST council) from:

18% to 12%
  • Handbags including pouches and purses; jewellery box
  • Wooden frames for painting, photographs, mirrors etc
  • Art ware of cork (including articles of sholapith)
  • Stone art ware, stone inlay work
  • Ornamental framed mirrors
  • Glass statues (other than those of crystal)
  • Glass art ware (including pots, jars, votive, cask, cake cover, tulip bottle, vase)
  • Art ware of iron
  • Art ware of brass, copper/ copper alloys, electro plated with nickel/silver
  • Aluminium art ware
  • Handcrafted lamps (including panchloga lamp)
  • Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)
  • Ganjifa card

12% to 5%

  • Handmade carpets and other handmade textile floor coverings (including namda/gabba)
  • Handmade lace
  • Hand-woven tapestries
  • Hand-made braids and ornamental trimming in the piece
  • Toran