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The Goods and Services Tax (GST) Council’s 47th meeting was held on June 28-29, 2022 under the chairmanship of the Finance Minister Nirmala Sitharaman and made several recommendations to implement changes to the GST regime.
Key Changes in the GST Rates for Goods, w.e.f. July 18, 2022:
|
Goods |
Existing GST rate |
Proposed GST Rate |
|
Printing, writing, or drawing ink |
12% |
18% |
|
Power-driven pumps primarily designed for handling water. For example, centrifugal pumps, deep tube-well turbine pumps, submersible pumps, and bicycle pumps |
12% |
18% |
|
LED lamps, lights and fixture, and their metal printed circuits board |
12% |
18% |
|
Drawing and marking out instruments |
12% |
18% |
|
Solar water heater and system |
12% |
18% |
|
Prepared/finished leather, chamois leather, composition leather |
5% |
12% |
|
Orthopedic appliances − splints and other fracture appliances, artificial parts of the body, or other appliances that are worn or carried, or implanted in the body to compensate for a defect or disability, intraocular lens |
12% |
5% |
|
Ostomy appliances |
12% |
5% |
|
Tetra packs (aseptic packaging paper) |
12% |
18% |
|
Cut and polished diamonds |
0.25% |
1.5% |
|
IGST on specified defense items imported by private entities or vendors, when end-user is the defense forces of India |
Applicable Rate |
Nil |
|
Cheques, lose or in book form |
Nil |
18% |
|
Petroleum/coal bed methane |
5% |
12% |
|
E-waste |
5% |
18% |
|
Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes |
Nil |
12% |
Withdrawal of Exemption in case of Services:
|
1 |
Transportation by rail or vessel of railway equipment and material. |
|
2 |
Storage or warehousing of commodities which attract tax (nuts, spices, copra, jaggery, cotton etc.) |
|
3 |
Fumigation in a warehouse of agricultural produce. |
|
4 |
Services by Reserve Bank of India (RBI), Insurance Regulatory and Development Authority (IRDA), Securities and Exchange Board of India (SEBI), Food Safety and Standards Authority of India (FSSAI) and Goods and Services Tax Network (GSTN). |
|
5 |
Renting of residential dwelling to registered business entities. |
|
6 |
Services provided by cord blood banks by way of preservation of stem cells. |
|
7 |
Common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12 percent with ITC benefit. |
|
8 |
Hotel accommodation of value up to INR 1000 per day shall be taxed at 12 percent. |
|
9 |
Room rent (excluding ICU) charged by a hospital, exceeding INR 5,000 per day per patient shall be taxed. The tax shall be levied only on the room rentals at five percent without ITC. |
|
10 |
GST exemption on training or coaching in recreational activities relating to arts, culture or sports is restricted only when supplied by an individual. |
Change in GST Rate for Services:
|
Goods |
Existing GST rate |
Proposed GST Rate |
|
Services supplied by foreman to chit fund |
12% |
18% |
|
Job work in relation to processing of hides, skins and leather |
5% |
17% |
|
Job work in relation to manufacture of leather goods and footwear |
5% |
12% |
|
Job work in relation to manufacture of clay bricks |
5% |
12% |
|
Works contract for roads, bridges, railways, metro, effluent treatment plant etc. |
12% |
18% |
|
Works contract service supplied to Central and State governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. and its sub-contracting |
12% |
18% |
|
Works contract service supplied to Central and State governments and local authorities involving predominantly earthwork and its sub-contracting |
5% |
12% |
|
Transport of goods and passengers by ropeways |
18% |
5% (with ITR for services) |
|
Renting of truck/ goods carriage where cost of fuel is included |
18% |
12% |
