23rd GST Council Meeting: Find the Fresh GST Tax List of Items and Services Here

23rd GST Council Meeting

Yet another GST Council meet and yet another round of benefits for the common man and businesses alike. Yes, the GST Council, which sat for a 2-day meeting held in Guwahati, decided to lower the tax rates on as many as 178 items which were falling under the top slab of 28%. These items now come under the purview of a lower 18% GST tax list.

Similarly, the council has also eased the tax rates on services such as eating out in restaurants to the lowest 5% GST tax rate slab. So, it makes for a comprehensive reading of the items and services which are moved to a lower rate compared to earlier. Let’s discuss on all these and more in this article.

Tax Rates of Items Slashed to 18% from 28% Earlier

Here’s a list of products where the tax incidence is now reduced to 18% from the top 28% slab.

  • Washing and cleaning preparations
  • Cartridges
  • Multi-function printers
  • Windows
  • Door
  • Aluminium frames
  • Mirror
  • Furniture
  • Mattress
  • Bedding
  • Leather clothing
  • Glassware
  • Sheets
  • Fans
  • Compressors
  • Light fitting
  • Hair shampoo
  • Razor and razor blades
  • Beauty products
  • Shave and aftershave items
  • Cocoa
  • Butter
  • Fat
  • Musical instruments & their parts
  • Physical exercise equipment
  • Wrist watch
  • Googles
  • Telescope
  • Binoculars
  • Oil Powder
  • Chewing gum/Bubble gum
  • Suitcase
  • Vanity Case
  • Briefcase
  • Chocolates
  • Cutlery
  • Stoves
  • Cookers
  • Folliage
  • Artificial fruits and flowers
  • Marble
  • Granite
  • Sanitaryware
  • Electrical boards, panels, wires

List of Services That Come Under 5% GST Tax List

The Goods and Services Tax (GST) council, in its latest meeting, has also decided to slash the rates of some services, which were earlier attracting 8% levy, to 5%. These services include –

  • Standalone AC and non-AC Restaurants and those serving liquor
  • Takeaway Food
  • Restaurants in hotels with a room tariff less than ₹7,500 (no input credit for these restaurants)

The reduction of tax rates would ease the burden on both common man and the businesses who so far had to weather out the troubles created due to higher levies in the past. And so the manufacturers have welcomed the latest move of the council saying they would pass on the benefits of lower prices to the consumers.

Revised List of Products Under Different GST Slabs

5% Slab

  • Skimmed milk powder
  • Frozen vegetables
  • Pizza bread
  • Coal
  • Fertilizers
  • Coffee
  • Fish fillet
  • Insulin
  • Cashew nuts
  • Sliced dry mango
  • Agarbatti
  • Ayurvedic medicines
  • Unbranded namkeen
  • Standalone AC and non-AC Restaurants and those serving liquor
  • Takeaway Food
  • Restaurants in hotels with a room tariff less than ₹7,500 (no input credit for these restaurants)

12% Slab

  • Frozen meat products
  • Fruit juice
  • Umbrella
  • Instant Food Mix
  • Sewing machine
  • Man-made yarn
  • Butter
  • Cheese
  • Sausage
  • Pickles
  • Ghee
  • Tooth powder
  • Business class air travel

18% Slab

  • Flavoured refined sugar
  • Pastries
  • Pasta
  • Mineral water
  • Soups
  • Deodorants
  • Washing and cleaning preparations
  • Detergents
  • Fans
  • Compressors
  • Pumps
  • Granite
  • Marble
  • Stones used for flooring
  • Restaurants located inside hotels with tariffs of ₹7,500 and above
  • Outdoor catering (Input tax credit to be available)
  • IT, telecom and financial services
  • Branded garments

28% Slab

  • Sunscreen
  • Dishwater
  • Vacuum cleaner
  • Paint
  • Cement
  • Pan masala
  • Automobiles
  • Motorcycles
  • Hair clippers
  • Racing
  • Movie tickets
  • Betting on casinos and racing

Boost for SMEs as Composition Scheme Limit Extended to 2 Crore

In a bid to boost the growth of small and medium enterprises (SMEs), the council has extended the limit of composition scheme to ₹2 crore from ₹1 crore as was announced in the previous meeting. By virtue of the scheme, a manufacturer or a trader would be paying tax at 1% rate. The restaurants, on the other hand, would have to pay tax at 5% rate, under the scheme, which involves less compliance and minimal paperwork. Companies with a turnover of up to ₹1.5 crore are allowed to file GST returns on a quarterly basis.

So, the GST tax rates have come down further with the latest GST council announcements, which would result in lowering the prices of products and services. Moreover, the economy is expected to move up in the wake of increasing consumption due to reduced GST tax rates.

Vikas Das is one of those expert writers in finance who has enlightened the readers about various banking and investment products like personal loan, home loan, car loan, mutual fund, fixed deposit and others.

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