As states and the centre gear up for the 47th GST Council meeting in Chandigarh this week, here is a list of items and services, which sources tell are up for rate revision, clarification, and even some that the Nominated Fitment Committee decided did not merit any change. The 47th meeting of the GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and UTs, is scheduled for June 28-29. The Council is meeting after a gap of six months. Here are the recommendations made by the committee:
Rate Change on goods
- Ostomy appliances: From 12 percent to 5 percent
- All orthopaedic implants: 5 percent, instead of differential rate of 5 percent and 12 percent
- Napa stone/tiles without mirror polishing: 5 percent, instead of differential rate of 5 percent and 18 percent
- Uniform GST rate of 5 percent on all by-products of milling of dal/pulses such as chilka, khanda and churi, etc, with the exception cat and dog food
- Exempting basic customs duty and IGST on certain defence imports by private entities, provided that the end users are the Indian Armed Forces.
- No GST on sewage treated water as against 18 percent
- Clarification on electric vehicles, whether or not fitted with a battery pack, are eligible for the concessional rate at 5 percent
- Increase tax on tetra pack/tetra-packaging paper from 12 percent to 18 percent
- Correct duty inversion by increasing rate on cut and polished diamonds from 0.25 percent to 1.5 percent
No Rate Change
- Fruit drinks, pickles, chutneys and sauces (12 percent)
- Ready-to-eat, ready-to-cook foods, instant food mixes, etc (18 percent)
- Branded snacks such as chips, bhujia, namkeen, etc (12 percent)
- Medical devices (12 percent)
- Rooftop solar projects and DCR modules (12 percent)
- Meat, bone, flesh, dairy products, branded khoya and paneer, spices and edible oils, which are packaged in small containers or sachets
- Tyres and Tubes used in e-rickshaws
- Heating, Ventilation, Air-Conditioning (HVAC) machines (28 percent)
- Electronic devices like tablets, laptops, desktop computers, etc, when used by students and teachers for education purposes
- Gems and jewellery (3 percent)
- Import of Gold doré (3 percent)
- CNG buses and CNG kits (28 percent)
- Parts used in electric vehicles
- Marble and granite, ceramic tiles and sanitaryware (18 percent)
- Carbonated fruit drinks or carbonated beverages with fruit juice (28 percent + 12 percent compensation cess)
- Helicopters and aircraft Parts
- Aviation Gasoline from (18 percent)
- Dairy products like ghee, butter, flavoured milk (12 percent)
- COVID-19 drugs, such as Itolizumab, etc
- Tobacco supplied for manufacture of smokeless tobacco products, beedis, tobacco products
The Nominated Fitment Committee has rejected a proposal to add the names of Industrial and Commercial Bank of China and RBL Bank as a banking institution for exemption of IGST.
The committee has further sought time to revisit and revise GST rates on printed books, which it says can be done at a time when the general review of GST rates is carried out.
Further, pharmaceuticals will be taxed at 12 percent as fitment committee is of the view that inputs to pharma sector are chemicals, mostly at 18 percent GST. General reduction of GST on the pharmaceutical sector to 5 percent will accentuate inverted duty structure and distortion in GST rate chain.
Rate Change on services
- Ice Cream Parlours to be taxed at 18 percent instead of differential GST rate of either 5 percent or 18 percent
- Ropeway services to be taxed at 5 percent as against 18 percent
The committee has clarified that in vitro fertilisation (IVF) services are exempt under GST as they come under care services.
The committee has further rejected proposals to change rates imposed on 102 services, a proposal by restaurants to restore GST of 12 percent with input tax credit, and a proposal to reduce GST on dry cleaning and laundry services.
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