Finance Minister, Nirmala Sitharaman has announced the reduction of GST rates on some items and services. This step has been taken to boost the economy. All rate changes would be effective from 1 October. The key sectors which would benefit from GST rate cuts are gems & jewellery, hotels, defence and automobiles.
Take a look at the GST Council Meet highlights
- To give a major boost to the gems and jewellery sector, GST on cut and polished semi-precious items has been reduced to 0.25 per cent from 3 per cent now.
- Tax rates on job work in diamond industry have been reduced to 1.5 per cent from 5 per cent.
- The GST council has cut tax on hotel room tariffs of ₹1,000 to ₹7,500/night to 12 per cent. While, those above ₹7,500 to 18 per cent.
- The GST on caffeinated beverages has been raised to 28 per cent, plus additional cess of 12 per cent as against the current rate of 18 per cent.
- Tax rates for outdoor catering have also been reduced to 5 per cent from the existing 18 per cent.
- To give a boost to the automobile sector, the GST council quoted that they have decided to lower cess on 1500 cc diesel vehicles and 1200 cc petrol vehicles by 12 per cent.
- Uniform GST rate of 12 per cent has been levied on polypropylene bags and sacks used for packing of goods.
- GST rates for cups and plates made from leaves and hides have been brought down to nil.
- Meanwhile, tax on almond milk has been set at 18 per cent.
- GST rates have also hiked on railway wagon, coaches from 5 per cent to 12 per cent.
- Exemption from GST/IGST has been announced on import of specified defence goods not being manufactured indigenously. It’s being extended only up to 2024.
- Supply of goods and services to FIFA and other specified organisations also exempted for U17 Women’s World Cup in India.
- Apart from these, the government has also cut GST rates on slide fasteners, wet grinders, and marine fuel by a large margin. GST rate on slide fasteners has been reduced from 18 per cent to 12 per cent, marine fuel from 18 per cent to 5 per cent, wet grinders consisting of stone as a grinder to 5 per cent from 12 per cent and 5 per cent to nil on dried tamarind.