GST New Rates
Another Good news, New rates of GST apply, 82 products and services are now at low cost.
Since the decision of the 25th meeting of the GST Council, the new rate has been implemented from January 25, 2018. According to these new rates, prices of some commodities will change. It decided to reduce rates of GST on 29 items and 53 services, including old vehicles, configurations and biodiesel.
Reduction in prices of these products
• Diamond and precious stones have become cheaper because the rates of GST have been reduced from the existing three percent to 0.25 percent.
• On older cars, GST will be at 18 percent rate of 28 percent.
• GST has been reduced from 18% to 12% on lemon juice, bottled drinking water up to 20 liters, some insecticide, biodiesel, drip and sprinkle irrigation machinery and sprayer.
• Now GST will be payable on the powder made from Tamarind seed, instead of 18%, only 5% will be payable.
• The rate of GST has also been reduced from 12% to 5% on the Velvet fabric.
• Now the filter rate in cigarette will be 18 percent instead of 12 instead of GST, while the rice husk has been brought from zero to five percent slab.
• Now, the GST rate will be 12 percent instead of 18 on the construction of Metro and Mono Rail projects.
• There will now be 5 percent GST on small domestic services but the benefit of the input tax credit facility will not be available.
• 18 percent GST will be payable for theme or water park instead of 28.
• GST, which is used to transport petroleum products like petrol and diesel, has also been reduced from 18 percent to 5 percent.
• Fumigation is done in the warehouses of agricultural products, that service has been released from GST.
• All the educational institutions have been exempted from the GST for the admission or the services offered for examination.
• They will not have to give GST on the entrance fees to be taken for the entrance examination. Students, faculty or staff have also been given relief on transport services.
India’s growth rate is 7.3 percent: World Bank
Declaration of exemptions in these services
• GST will be 12 percent applicable to the building for mid day meal.
• Transport services are exempted from sending goods through a plane outside India.
• The rate of GST on the tailoring service has been reduced from 18 to 5 percent.
• The service providing information under RTI has been exempted from GST.
• GST has been reduced from 18 to 12 percent on metro, mono rail construction projects.
• Shipping of ships will also be exempt from sending the goods out of the country. This rebate will last till September 30, 2018.
• The rate of transportation of raw petroleum products and petroleum products has been reduced to 18 to 5 percent (without input tax credit) and 12 percent (including ITC).
• The legal services that the government, local bodies and government authorities have been excluded from the tax net.
• The limit of exemption given to RWA members has been increased from Rs 5000 to Rs 7500 per member, per month.
• GST on job work service has been reduced to 5 percent for manufacturing of leather goods and footwear.
Increase of 6.8% in eight major areas of Indian economy.