GST Rates: On the basis of recommendation in 45th GST Council Meeting, several notifications issued to notify the changes in the applicable GST rates (including exemptions). Following changes are applicable to some industries from 01.10.2021 on the basis of notifications issued-
1. GST Rates as per Notification no. 06/2021-CT (Rate)
1. Job-work (alcohol)
The relevant rate of tax on job work activities in relation to the manufacture of alcoholic liquor for human use was controversial. The tax rate was 5% if alcoholic liquor for human consumption was equated with food products. In this regard, the following new entry has been added :
| Description | Rate |
| Services by way of job work in relation to manufacture of alcoholic liquor for human consumption | 18% |
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2. Intellectual Property (IP) right
Previously, there was a distinction in the tax rate that applied to temporary or permanent transfer, or allowing the use or enjoyment of Intellectual Property (IP) between the items (other than software) and the IP related to software. The disparity in reference to the applicable tax rate has now been removed, the rate is-
| Description | Rate |
| Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right | 18% |
3. Publishing and Printing services
12 percent concessional rate of tax applies to printing services for all goods falling under Chapter 48 or 49 [including newspapers, books (including Braille books), journals, and periodicals], which are subject to CGST at 6%, 2.5 percent, or nil, where the publisher only supplies the content and the physical inputs, such as paper used for printing, are owned by the publisher. All such services will now be taxed at a rate of 18 percent.
| Description | Rate |
| Other manufacturing services; publishing, printing and reproduction services; material recovery services | 18% |
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4. Amusement parks industry
Previously, there was misunderstanding over the applicable tax rate (i.e. 18% or 28%) for the supply of services such as entrance to various amusement parks, casinos, race clubs, or athletic events such as the IPL. The following entries have now been replaced as follows:
| Description | GST Rates |
| Services by way of admission to;(a) theme parks, water parks and any other place having joy rides, merry- go rounds, go carting, or(b) ballet, – other than any place covered by (iiia) below | 18% |
| Services by way of admission to (a) casinos or race clubs or any place having casinos or race clubs or (b) sporting events like Indian Premier League. | 28% |
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2. GST Rates as per Notification no. 07/2021-CT (Rate)
1. Charitable entities
Previously, certain specified services provided by/to organisations registered under section 12AA of the Income Tax Act, 1961 were exempt or charged at a reduced rate of tax. Due to the insertion of Sec. 12AB into the Income Tax Act of 1961 (requiring charitable entities to get registration under the said new provision), an issue arose regarding GST exemptions/ concessions that were still tied to Sec. 12AA and not Sec. 12AB. The aforementioned inconsistency has now been rectified by referencing Sec. 12AB in the following entries-
| Description | GST Rates |
| Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, {other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above} supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-(g) a building owned by an entity registered under section 12AA or 12AB of the Income Tax Act, 1961 (43 of 1961), which is used for carrying out the activities of providing, centralised cooking or distribution, for mid-day meals under the mid-day meal scheme sponsored by the Central Government, State Government, Union territory or local authorities. | 12% |
| Services by an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities. | Nil |
| Services by an old age home run by Central Government, State Government or by an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961) to its residents (aged 60 years or more) against consideration upto twenty-five thousand rupees per month per member, provided that the consideration charged is inclusive of charges for boarding, lodging and maintenance. | Nil |
| Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961). | Nil |
| Services by way of training or coaching in recreational activities relating to- (a) arts or culture, or (b) sports by charitable entities registered under section 12AA or 12AB of the Income-tax Act. | Nil |
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2. Asian Football Confederation
Exemption has been granted to the services by way of right to admission to the events organised under AFC Women’s Asia Cup 2022. Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under AFC Women’s Asia Cup 2022.
3. Transport Industry
Exemption has been granted to the services by way of granting National Permit to a goods carriage to operate throughout India / contiguous States.
4. Government Tranning Programmes
Exemption has been granted to the supply provided to the Central Government, State Government, Union territory administration under any training programme for which 75% or more of the total expenditure is borne by the Central Government, State Government, Union territory administration.
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3. GST Rates as per Notification No. 8/2021-CT (Rate)
1. Renewable energy industry
The rate of tax for the following goods have been increased from 5% to 12%-
| Chapter, Heading, Subheading or Tariff item | Description | Rate |
| 84, 85 or 94 | Following renewable energy devices and parts for their manufacture:-(a) Bio-gas plant;(b) Solar power based devices;(c) Solar power generator;(d) Wind mills, Wind Operated Electricity Generator (WOEG);(e) Waste to energy plants / devices;(f) Solar lantern / solar lamp;(g) Ocean waves/tidal waves energy devices/plants;(h) Photo voltaic cells, whether or not assembled in modules or made up into panels. Explanation:- If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the entry at S. No. 38 of the Table mentioned in the notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as seventy per cent. of the gross consideration charged for all such supplies, and the remaining thirty per cent. of the gross consideration charged shall be deemed as value of the said taxable service. | 12% |
2. Railway industry
The rate of tax for the following goods have been increased from 12% to 18%
| Chapter, Heading, Subheading or Tariff item | Description of Goods | GST Rates |
| 8601 | Rail locomotives powered from an external source of electricity or by electric accumulators. | 18% |
| 8602 | Other rail locomotives; locomotive tenders; such as Diesel electric locomotives, Steam locomotives and tenders thereof | 18% |
| 8603 | Self-propelled railway or tramway coaches, vans and trucks, other than those of heading 8604. | 18% |
| 8604 | Railway or tramway maintenance or service vehicles, whether or not self-propelled (for example, workshops, cranes, ballast tampers, track liners, testing coaches and track inspection vehicles). | 18% |
| 8605 | Railway or tramway passenger coaches, not self-propelled; luggage vans, post office coaches and other special purpose railway or tramway coaches, not self-propelled (excluding those of heading 8604). | 18% |
| 8606 | Railway or tramway goods vans and wagons, not self-propelled. | 18% |
| 8607 | Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof. | 18% |
| 8608 | Railway or tramway track fixtures and fittings; mechanical (including electro-mechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing.”; | 18% |
3. Packaging industry
The rate of tax for the following goods have been increased from 12% to 18%:
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 4819 | Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like. | 18% |
4. Waste/ scrap industry
The rate of tax for the following goods have been increased from 5% to 18%:
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 3915 | Waste, Parings and Scrap, of Plastics. | 18% |
5. Printing industry
The rate of tax for the following goods have been increased from 12% to 18% :
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 4906 00 00 | Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand-written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing. | 18% |
| 4907 | Unused postage, revenue or similar stamps of current or new issue in the country in which they have, or will have, a recognised face value; stamp-impressed paper; banknotes; cheque forms; stock, share or bond certificates and similar documents of title (other than Duty Credit Scrips). | 18% |
| 4908 | Transfers (decalcomanias). | 18% |
| 4909 | Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings. | 18% |
| 4910 | Calendars of any kind, printed, including calendar blocks | 18% |
| 4911 | Other printed matter, including printed pictures and photographs; such as Trade advertising material, Commercial catalogues and the like, printed Posters, Commercial catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purposes reproduced with the aid of computer or any other devices. | 18% |
6. Pen industry
The rate of tax for the following goods have been increased from 12% to 18% :
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 9608 | Ball point pens; felt tipped and other porous-tipped pens and markers; fountain pens; stylograph pens and other pens; duplicating stylos; pen holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609. | 18% |
7. Carbonated Fruit Drink industry
Hitherto there was confusion as regards the applicable rate of tax on the Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice. Now the following entry has been inserted :
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 2202 | Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice. | 28% |
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8. Mining industry
The rate of tax for the following goods have been increased from 5% to 18%:
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 2601 | Iron ores and concentrates, including roasted iron pyrites. | 18% |
| 2602 | Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight. | 18% |
| 2603 | Copper ores and concentrates. | 18% |
| 2604 | Nickel ores and concentrates. | 18% |
| 2605 | Cobalt ores and concentrates. | 18% |
| 2606 | Aluminium ores and concentrates. | 18% |
| 2607 | Lead ores and concentrates. | 18% |
| 2608 | Zinc ores and concentrates. | 18% |
| 2609 | Tin ores and concentrates. | 18% |
| 2610 | Chromium ores and concentrates. | 18% |
9. Agriculture Industry
Tamarind seeds meant for any use other than sowing will attract the tax @ 5%.
10. Bio-diesel industry
Hitherto the applicable rate of tax on bio-diesel was 12%. Now two separate entries have been inserted in this regard as under:
| Description | Rate |
| Bio-diesel supplied to Oil Marketing Companies for blending with High Speed Diesel | 5% |
| Bio-diesel (other than bio-diesel supplied to Oil Marketing Companies for blending with High Speed Diesel) | 12% |
11. Export freight (for exporters)
The exemption in existence as regards the export freight has been extended till 30.09.2022. The amended entries read as under :
| Description | Rate |
| Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India | Nil (till 30.09.2022) |
| Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India. | Nil (till 30.09.2022) |
4. Notification No. 10/2021 – CT (Rate)
1. Oil Specific Industry
Goods added to RCM list where registered person need to pay tax on purchasing from un registered person.
| Tariff item, sub-heading, heading or Chapter | Description of Goods | Supplier of goods | Recipient of supply |
| 33012400, 33012510, 33012520, 33012530, 33012540 | Following essential oils other than those of citrus fruit namely: – a) Of peppermint (Menthapiperita); b) Of other mints : Spearmint oil (exmenthaspicata), Water mint-oil (exmentha aquatic), Horsemint oil (exmenthasylvestries), Bergament oil (ex-mentha citrate). | Any Unregistered Person | Any Registered Person. |
5. GST Rates as per Notification No. 11/2017 – CT (Rate)
Fortified Rice Kernel (Premix) supply for ICDS or similar scheme duly approved by the Central Government or any State Government will attract 5% GST Rate
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6. GST Rates as per Notification No. 12/2017 – CT (Rate)
1. Pharmaceutical industry
The concessional rates/ exemptions have been granted on the specified goods as under ( till 31.12.2021) :
| Chapter, Heading, Subheading or Tariff item | Description of Goods | Rate |
| 30 | Tocilizumab | Nil |
| 30 | Amphotericin B | Nil |
| 30 | Remdesivir | 5% |
| 30 | Heparin (anti-coagulant) | 5% |
| 30 | Itolizumab | 5% |
| 30 | Posaconazole | 5% |
| 30 | Infliximab | 5% |
| 30 | Bamlanivimab & Etesevimab | 5% |
| 30 | Casirivimab & Imdevimab | 5% |
| 30 | 2-Deoxy-D-Glucose | 5% |
| 30 | Favipiravir | 5% |
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