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Commodity wise GST rates – Gist of outcome of 14th GST Council Meeting

Dear CMA Friends
As you may kindly be aware that GST Council has broadly approved GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods during 14th GST Council meeting held at Srinagar, Jammu & Kashmir.
The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes.  GST rates for certain goods like textile, footwear, biris, precious metals, etc. are yet to be decided by the GST Council.
Highlights are as under:
1)  Items to be taxed at different rates are as under –
No tax
No tax will be imposed on items like Fresh Meat, Fish Chicken, Eggs, Milk, Butter Milk, Curd, Natural Honey, Fresh Fruits And Vegetables, Flour, Besan, Bread, Prasad, Salt, Bindi, Sindoor, Stamps, Judicial Papers, Printed Books, Newspapers, Bangles, Handloom etc.
Rate 5%
Items such as Fish Fillet, Cream, Skimmed Milk Powder, Branded Paneer, Frozen Vegetables, Coffee, Tea, Spices, Pizza Bread, Rusk, Sabudana, Kerosene, Coal, Medicines, Stent, Life boats will attract tax of 5 %.
Rate 12%
Frozen Meat products, Butter, Cheese, Ghee, Dry Fruits in packaged form, Animal Fat, Sausage, Fruit Juices, Bhutia, Namkeen, Ayurvedic Medicines, Tooth Powder, Agarbatti, Colouring Books, Picture Books, Umbrella, Sewing Machine, and Cellphones will be under 12 % tax slab.
Rate 18%
Most items are under this tax slab which includes Flavoured Refined Sugar, Pasta, Cornflakes, Pastries and Cakes, Preserved Vegetables, Jams, Sauces, Soups, Ice Cream, Instant Food Mixes, Mineral Water, Tissues, Envelopes, Tampons, Note Books, Steel Products, Printed Circuits, Camera, Speakers and Monitors.
Rate 28%
Chewing Gum, Molasses, Chocolate not containing Cocoa, Waffles and Wafers coated with Chocolate, Pan Masala, Aerated Water, Paint, Deodorants, Shaving Creams, After Shave, Hair Shampoo, Dye, Sunscreen, Wallpaper, Ceramic Tiles, Water Heater, Dishwasher, Weighing Machine, Washing Machine, ATM, Vending Machines, Vacuum Cleaner, Shavers, Hair Clippers, Automobiles, Motorcycles, Aircraft for personal Use, And Yachts will attract 28 % tax – the highest under GST system.
The rate structure for the following commodities is yet to be decided:
1. Biri wrapper leaves (tendu patta) – Ch. 14
2. Biscuits – Ch.19
3. Biris – Ch. 24
4. Textiles – Ch. 50 to 63
5. Footwear – Ch. 64
6. Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin – Ch. 71 7. Power driven Agricultural, horticultural, forestry, poultry keeping or bee-keeping machinery, Harvesting or threshing machinery, machines for cleaning, sorting or grading, machinery used in milling industry and parts thereof [8432, 8433, 8436 and 8437]. 

2)  Approval to rates of GST Compensation Cess for demerit & luxury items:
Further, the GST Council has broadly approved the rates of GST Compensation Cess to be levied on certain goods like 
       Cess of 204% proposed for pan masala containing tobacco ‘Gutkha’,
       Cigarettes not exceeding 65 mm will attract a cess of 5% plus Rs. 1,591 per thousand.
       Small petrol cars with an engine capacity of less than 1200 cc will attract 1% cess, and those with a diesel engine capacity of less than 1500 cc will attract 3% cess.
       Large cars with an engine capacity greater than 1500 cc, and SUVs with a length of more than 4 m and engine capacity greater than 1500 cc, will attract a cess of 15%.
       Motorcycles with an engine capacity of more than 350 cc will attract 3% cess and an equal amount of levy will be applied on aircraft for personal use and yachts and other vessels for pleasure or sports.
Summary of Tax Rates
Nearly 81% of the items will fall less than or equal to 18% GST rate slabs and only 19% of the goods will be taxed above 18%.

Percentage of total items
Applicable Tax Rate slab
Copy of the GST Rate Schedule for goods is attached herewith.
In addition to this, GST council also approved nine rules for the rollout of the new indirect tax regime. The nine rules finalised by the council pertain to composition, valuation, transition, input tax credit, invoice, payment, refund, registration and return.

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