New list of GST Rate changes now applicable
23rd GST Council meeting that was held in Guwahati on Thursday and Friday has taken a number of decisions that will benefit both the common man as well as businesses. The GST Council has cut tax rates and thereby made as many as 177 items cheaper. The GST Council has a) raised the threshold for small businesses for the Composition Scheme to Rs 1.5 crore and b) eased compliance burden for bigger businesses. Tax rates on all restaurants have been cut to 5% without input tax credit; restaurants with rooms above Rs 7,500 will be taxed at 18% with ITC – earlier levy was charged at rate of 12% on non-AC restaurants and 18% for air-conditioned ones. The changes effected have been many and here we present the full list of items that have been affected.
Recommendations made On GST Rate changes by the GST Council as per discussions in its 23rd Meeting on 10th November, 2017 held at Guwahati
a) In the meeting held today, that is 10th November, 2017, the Council has recommended major relief in GST rates on certain goods and services. These recommendations spread across many sectors and across commodities.
b) As per these recommendations, the list of 28% GST rated goods is recommended to be pruned substantially, from 224 tariff headings [about 18.5% of total tariff headings at 4-digit] to only 50 tariff headings including 4 headings which have been partially reduced to 18% [about 4% of total tariff headings at 4-digit].
c) Further, the Council has recommended changes in GST rates on a number of goods, so as to rationalise the rate structure with a view to minimise classification disputes.
d) The Council has also recommended issuance of certain clarifications to address the grievance of trade on issues relating to GST rates and taxability of certain goods and services.
e) On the services side also, the Council recommended changes in GST rates to provide relief to aviation & handicraft sectors and restaurants.