Finance

GST Rates Revised For 29 Goods, 53 Services, Rates Effective January 25

Just few days left for the Union Budget for 2018–2019, the GST Council today changed the GST tax rates of 29 goods along with 53 categories of services. Mr Jaitley, leader of the GST Council, said that the new rates will be implemented from January 25.

GST Rates Revised For 29 Goods, 53 Services, Rates Effective January 25

The Council in its 25th meetingconsidered simplifying the return filing process where Infosys chairman Nandan Nilekani will be giving expert advice.

As per Mr Jaitley, the Council may consider bringing petroleum and other exempt items within the ambit of GST.

On medium and large used cars, GST rate has been slashed from 28% to 18% and on other used vehicles to 12%. Rate of GST on LPG for domestic consumers supplied by private LPG distributors will witness a dip from 18% to 5%.

Bio-fuel powered buses have witnessed a cut to 18% from 28%. GST has been slashed on diamonds and precious stones from 3% to 0.25%. Sugar boiled confectionery and 20 liters drinking water bottles will attract GST of 12% instead of the earlier rate of 18%. Drip irrigation system, which includes laterals and sprinklers have a drop in GST rates of 12% instead of 18%.

A higher rate of GST would be applied on Cigarette filter rods of 18% as against the current rate of 12%.

The GST Council exempted legal services provided to the government. Tax rate on tailoring service has been reduced to 5% from 18%. Tax on entertainment activities like water parks, joy rides, merry-go-rounds, go-carting etc will also be reduced from 28% to 18%.

From February 1, a new GST provision will be implemented which would require transporters to carry an electronic way bill when moving goods of over Rs. 50,000 in value between states. This would help in checking tax evasion.

In previous meeting, in November, the Council had reduced the tax rate of over 200 items.