The 28th GST Council meeting slashed rates on goods like automobiles and FMCG. Review the revised tax structures and anti-profiteering measures.
The Goods and Services Tax (GST) Council, during its 28th session on July 21, 2018, proposed reductions in tax rates for various goods. This initiative sought to positively impact consumers by rationalizing tax rates.
Recent GST Council Meetings and Rate Changes
32nd GST Council Meeting
The upcoming 32nd GST Council meeting was scheduled for January 10, 2019, in New Delhi. Discussions were anticipated to cover potential rate reductions for the housing sector, regulations for private lottery schemes, and the inclusion of the service sector under the composition scheme, among other topics. Further details can be found regarding the 32nd GST Council Meeting.
31st GST Council Meeting and Key Beneficiaries
The 31st GST Council meeting, held on December 22, 2018, resulted in rate adjustments for 23 goods and a select number of services. The primary sectors to benefit from these changes included:
- Automobiles
- Fast-Moving Consumer Goods (FMCG)
- The handicrafts industry
Authorities emphasized strict enforcement of anti-profiteering regulations to ensure that these tax benefits are passed on to the final consumers. The following section provides an industry-wise summary of the rate reductions.
Summary of Industry-Wise Rate Reductions
The table below details the GST rate changes, categorized by industry, showing the old rate, new rate, and the percentage reduction for various items.
| Sector | Product | Previous Rate (%) | Revised Rate (%) | Rate Reduction (%) |
|---|---|---|---|---|
| Automobile | Lithium-ion batteries used in electric vehicles | 28 | 18 | 10 |
| Automobile | Concrete Mixers | 28 | 18 | 10 |
| Automobile | Crane Lorries | 28 | 18 | 10 |
| Automobile | Spraying Lorries | 28 | 18 | 10 |
| Automobile | Fire Fighting Vehicles | 28 | 18 | 10 |
| Automobile | Work Trucks used for goods transportation in factories, warehouses, dock areas, or airports | 28 | 18 | 10 |
| Automobile | Trailers | 28 | 18 | 10 |
| Automobile | Semi Trailers | 28 | 18 | 10 |
| Automobile | Fuel Cell Vehicles | 28 | 12 | 16 |
| Oil and Gas | Ethanol | 18 | 5 | 13 |
| Oil and Gas | Brass Kerosene Stove | 18 | 12 | 6 |
| FMCG | Sanitary Napkins | 12 | 0 | 12 |
| FMCG | Scent Sprays | 28 | 18 | 10 |
| FMCG | Toilet Sprays | 28 | 18 | 10 |
| FMCG | Powder Puffs | 28 | 18 | 10 |
| FMCG | Cosmetic Pads | 28 | 18 | 10 |
| Paint | Paints | 28 | 18 | 10 |
| Paint | Varnish | 28 | 18 | 10 |
| Paint | Glaziers’ Putty | 28 | 18 | 10 |
| Paint | Grafting Putty | 28 | 18 | 10 |
| Paint | Resin Cements | 28 | 18 | 10 |
| Consumer Electricals | Washing Machines | 28 | 18 | 10 |
| Consumer Electricals | Vacuum Cleaners | 28 | 18 | 10 |
| Consumer Electricals | Televisions (upto 68cm) | 28 | 18 | 10 |
| Consumer Electricals | Refrigerators | 28 | 18 | 10 |
| Consumer Electricals | Water Coolers | 28 | 18 | 10 |
| Consumer Electricals | Ice Cream Freezers | 28 | 18 | 10 |
| Consumer Electricals | Milk Coolers | 28 | 18 | 10 |
| Consumer Electricals | Food Grinders | 28 | 18 | 10 |
| Consumer Electricals | Mixers | 28 | 18 | 10 |
| Consumer Electricals | Juicers | 28 | 18 | 10 |
| Consumer Electricals | Shavers | 28 | 18 | 10 |
| Consumer Electricals | Hair Clippers | 28 | 18 | 10 |
| Consumer Electricals | Storage Water Heaters | 28 | 18 | 10 |
| Consumer Electricals | Immersion Water Heaters | 28 | 18 | 10 |
| Consumer Electricals | Hair Dryers | 28 | 18 | 10 |
| Consumer Electricals | Hand Dryers | 28 | 18 | 10 |
| Consumer Electricals | Electric Smoothing Irons | 28 | 18 | 10 |
| Footwear | Footwear costing upto Rs 1,000 per pair earlier, 5% GST was charged for value upto Rs.500 per pair | 18 | 5 | 13 |
| Textile | Chenille Fabrics | 12 | 5 | 7 |
| Textile | Handloom Dari | 12 | 5 | 7 |
| Textile | Knotted Caps costing under Rs 1,000 | 12 | 5 | 7 |
| Textile | Handbags | 18 | 12 | 6 |
| Textile | Purses | 18 | 12 | 6 |
| Textile | Jewellery Boxes | 18 | 12 | 6 |
| Construction | Bamboo Flooring | 18 | 12 | 6 |
| Agriculture | Phosphoric Acid (Fertilizer Grade) | 12 | 5 | 7 |
| Agriculture | Solid Biofuel Pellets | 18 | 0 | 18 |
| Agriculture | Coir Pith Compost | 5 | 0 | 5 |
| Art and Handicrafts (cottage industry) | Stone/Marble/Wood Deities | 5 | 0 | 5 |
| Art and Handicrafts (cottage industry) | Rakhi | 18 | 0 | 18 |
| Art and Handicrafts (cottage industry) | Wood Frames | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Art Ware of Cork | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Stone Art Ware | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Stone Inlay Work | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Ornamental Framed Mirrors | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Glass Statues | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Glass Art Ware | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Art Ware of Iron | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Art Ware of Brass | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Art Ware of Copper | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Art Ware of Nickel | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Art ware of Silver | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Aluminium Art Ware | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Handcrafted Lamps | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Worked Vegetable or Mineral Carvings | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Wax Articles | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Ganjifa Card | 18 | 12 | 6 |
| Art and Handicrafts (cottage industry) | Handmade Carpets | 12 | 5 | 7 |
| Art and Handicrafts (cottage industry) | Handmade Lace | 12 | 5 | 7 |
| Art and Handicrafts (cottage industry) | Hand Woven Tapestries | 12 | 5 | 7 |
| Art and Handicrafts (cottage industry) | Handmade Braids | 12 | 5 | 7 |
| Art and Handicrafts (cottage industry) | Toran | 12 | 5 | 7 |
| Art and Handicrafts (cottage industry) | Sal Leaves | 18 | 0 | 18 |
| Art and Handicrafts (cottage industry) | Siali Leaves | 5 | 0 | 5 |
| Art and Handicrafts (cottage industry) | Sabai Rope | 12 | 0 | 12 |
| Art and Handicrafts (cottage industry) | Phool Bhari Jhadoo | 5 | 0 | 5 |
| Art and Handicrafts (cottage industry) | Khali Dona | 5 | 0 | 5 |
Important Note on Implementation
It is important to note that these revised rates had not yet been officially implemented at the time of the announcement. They were slated to become effective from July 27, 2018, pending the issuance of the official notification.
