GST Rates 2019: Everything You Need To Know About Goods & Services Tax Slabs

GST Rates 2019: Everything You Need To Know About Goods & Services Tax Slabs

GST Rates 2019: Everything You Need To Know About Goods & Services Tax Slabs

The Goods and Services Tax (GST) is one of the biggest tax-related reforms in the country that eliminated the cascading of taxes that were levied in the past and brought uniformity in the taxation system. The GST Council meets at regular intervals to revise the GST rates for various products. The council had its 37th meet held at Goa on Friday i.e. 20th September 2019, led by Finance Minister Nirmala Sitharaman.

The 37th GST Council meet did not lower the tax rates on Automobiles but reduced the compensation cess from 15% to lower rates for specified vehicles. The all-powerful council has also decided to remove the hotel industry from the 28 percent tax slab, the highest under the GST regime. The changes will be effective from 1st October 2019.

GST Rate revision in 37th GST council meeting:

The following are the rate cuts announced at the 37th GST Council meeting:

Item Current Rate New Rate
Caffeinated Beverages 18% 28%+12% cess
Plates and cups made of flowers, leaves and bark 5% Nil
Diamond Job work 5% 1.50%
Outdoor Catering (without ITC) 18% 5%
Supplies of Railways wagons & coaches (without refund of accumulated ITC) 5% 12%
Other Job work 18% 12%
Hotels (Room Tariff of Rs.7501 or above) 28% 18%
Hotels (Room Tariff from Rs 1,001 to Rs 7,500) 18% 12%
Woven/ Non-woven Polyethylene Packaging bags 18% 12%
Marine fuel 18% 5%
Slide fasteners   18% 12%
Almond Milk 18%
Wet grinders (consisting of stone as a grinder) 12% 5%
Dried Tamarind 5% Nil
Semi-precious stones- cut & polished 3% 0.25%
Specified goods for petroleum operation under HELP* Applicable Rate 5%

*Hydrocarbon Exploration Licensing Policy

Item Current Rate New Rate
Cess on Petrol Motor Vehicles (Capacity of 10-13 passengers) 15% 1%
Cess on Diesel Motor Vehicles (Capacity of 10-13 passengers) 15% 3%

In its 36th meeting held in July 2019, the GST Council had decided to reduce the tax rate on all-electric vehicles to 5% from 12%. The panel had also lowered the tax rate on charging stations or chargers for the electric vehicles to 5 percent. The changes became effective from August 1, 2019.

The following are the rate cuts were announced at the 36th GST Council meeting:

Items Before After
Electric chargers 18% 5%
Electric vehicles 12% 5%
A full exemption is given to hiring of e-buses(seating capacity exceeds 12 passengers) by local authorities

We have mentioned some of the other important GST council meetings held till date for your information:

32nd GST Council Meeting: On 10th January 2019, the 32nd GST Meeting was held and the decisions mainly focused on smaller businesses. One of the crucial decisions at this GST Council meeting was the introduction of a GST composition scheme for individuals/businesses providing services or mixed services (other than restaurant services) with a turnover limit of Rs. 50 lakhs with a tax rate of 6%.

31st GST Council Meeting: The 31st GST Council Meeting was held on 22nd December 2018. However there was no increase in tax rates for any goods or services and the decrease in rates included tax rate change from 5% to nil (packaged vegetables, etc.) as well as 12% to nil (music books). GST Rates for 23 Goods and 3 Services were revised in this meeting.

28th GST Council Meeting: The 28th GST meeting was held at New Delhi on 21st July, 2018. It witnessed major changes in the GST rates in the country. Some of the major changes initiated in the meeting include-

GST Returns of Small taxpayers

Simplified monthly returns

NIL Return filing by SMS

Changes in GST Rates

GST Migration Re-opened

The council had lowered the tax rates to 18% from 28% on 15 items including vacuum cleaners, TV, washing machine and others. Sanitary napkins, marbles, stones, raw materials for jhadoo and others have got their rates reduced to 0% i.e. exempted from GST. Now only 35 goods are in 28% bracket.

Conclusion:  GST is a game-changing reform for the Indian economy as it brings about net appropriate price for the goods and services considered under single taxation system. The latest GST rates are likely to ease the burden on the common man as the rates have reduced for most mass consumption items.

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