new gst rates

The government slashed the GST rates on 29 items and 53 services. In this post,  we will look at the new GST rates from the 25th GST council meeting. Here, we will discuss the following changes in GST rates one by one.

  1. What are the new GST rates on various items?
  2. Which items have the reduction from 12% to 5% with no refund of unutilized input tax credit?
  3. Which are items having Nil GST rate?
  4. What are the changes in compensation cess?
  5. What are the changes in IGST rate?
  6. What are the modifications in definition / clarification in respect of changes in GST/IGST rates on goods?

List of the New GST rates on various items are as below:

Sl. No Description Present GST rate Revised GST rate
1 Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier. It is subject to the condition that no input tax credit of central excise duty/value-added tax or GST paid on such vehicles has been availed by him. 28% 18%
2 Buses, for use in public transport, which exclusively run on biofuels. 28% 18%
3 All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier. It is subject to the conditions that no input tax credit of central excise duty /value-added tax or GST paid on such vehicles has been availed by him. 28% 12%
4 Sugar boiled confectionary 18% 12%
5 Drinking water packed in 20 litters bottles 18% 12%
6 Fertilizer grade Phosphoric acid 18% 12%
7 Bio-diesel 18% 12%
8 The following Bio-pesticides:

  • Bacillus thuringiensis var. israelensis
  • Bacillus thuringiensis var. kurstaki
  • Bacillus thuringiensis var. galleriae
  • Bacillus sphaericus
  • Trichoderma viride
  • Trichoderma harzianum
  • Pseudomonas fluoresens
  • Beauveriabassiana
  • NPV of Helicoverpaarmigera
  • NPV of Spodopteralitura
  • Neem based pesticides
  • Cymbopogan
18% 12%
9 Bamboo wood building joinery 18% 12%
10 Drip irrigation system including laterals, sprinklers 18% 12%
11 Mechanical Spray 18% 12%
12 Tamarind Kernel Powder 18% 5%
13 Mehendi paste in cones 18% 5%
14 LPG supplied for supply to household domestic consumers by private LPG distributors 18% 5%
15 Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mockups and modules, raw material and consumables required for launch vehicles and satellites and payloads 18% 5%
16 Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork 12% 5%
17 Cigarette filter rods 12% 18%
18 Rice bran (other than de-oiled rice bran) NIL 5%

Reduction from 12% to 5% with no refund of unutilized input tax credit

Sl. No Description Present GST Rate Revised GST rate
1 Velvet Fabric 12% 5%
2 Diamonds and precious stones 3% 0.25%

Nil GST Rate

Sl. No Description Present GST Rate Revised GST rate
1
  • Vibhuti
  • Parts, and accessories for the manufacture of hearing aids
  • De-oiled rice bran
 NIL  NIL

Changes in compensation cess on certain goods:

Sl. No Description Present CompenSation Cess Rate Compensation Cess Rate Recommended
1 Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10- 13 seater buses and ambulances, subject to specified conditions 15% Nil
2 Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value-added tax or GST paid on such vehicles has been availed by him. Applicable rate Nil
3 All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value-added tax or GST paid on such vehicles has been availed by him Applicable rate Nil

Changes in IGST rate recommended on certain goods:

Sl. No Description Present IGST Rate IGST Rate Recommended
1 Satellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mockups and modules, raw material and consumables required for launch vehicles and satellites and payloads 18% 5%

Modification in definition/clarification in respect of changes in GST/IGST rates on goods:

Sl. No Description Present GST Rate Modification/clarification Recommended
1 Poly Butylene Feed Stock & Liquefied Petroleum Gas 18% The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions
2 Rail coach industry Applicable GST rate Only the goods falling under chapter 86 attract 5% GST rate with no refund of unutilized ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways
3 Coal rejects 5% + Rs. 400 PMT Compensation Cess Coal rejects fall under heading 2701 and attracts 5% GST and Rs. 400 PMT Compensation Cess

Read more: Latest GST changes from 24th and 25th GST council meeting

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