Recommendations made in the 31st GST Council Meeting on Changes in Rate

The 31st GST Council Meeting held on 22nd December saw various recommendations regarding changes in GST rates on goods and services.

I. GST rate reduction on goods which were attracting GST rate of 28%:
A. 28% to 18%
 Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483.
 Monitors and TVs of up to screen size of 32 inches.
 Re-treaded or used pneumatic tyres of rubber.
 Power banks of lithium-ion batteries. Lithium-ion batteries are already at 18%. This will bring parity in GST rate of power banks and lithium ion batteries.
 Digital cameras and video camera recorders.
 Video game consoles and other games and sports requisites falling under HS code 9504.
B. 28% to 5%
 Parts and accessories for the carriages for disabled persons

II. GST rate reduction on other goods:–
A. 18% to 12%
 Cork roughly squared or debagged
 Articles of natural cork
 Agglomerated cork
B. 18% to 5%
 Marble rubble
C. 12% to 5%
 Natural cork
 Walking Stick
 Fly ash Blocks
D. 12% to Nil
 Music Books
E. 5% to Nil
 Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container.
 Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

III. GST on Solar Power Generating Plan and other Renewable Energy Plants:
 GST rate of 5% has been prescribed for renewable energy devices and parts for their manufacture. Bio gas plant/Solar Power based devices, Solar Power Generating System, etc which fall under the Chapter 84, 85 or 94 of the Tariff will be covered under this category. All other goods or services used in these plants will attract the applicable GST.
 The Council meeting also marked recommendations considering disputes regarding GST rates where specified goods which attract 5% GST are supplied along with services of construction and other goods for a solar power plant. The Council recommended that in all such cases, 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining 30% portion of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.

IV. Reduction in GST rates/exemptions on services:
 GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.
 GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
 Services supplied by banks to Basic Saving Bank Deposit (BSBD) account
holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
 Air travel of pilgrims by non-scheduled/charter operations, for religious
pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).

Click here for the official press release.