Lower GST for more items
- 2018-01-19 05:36:30
"In many cases such as works contract services or used motor vehicles, the cut in rate might have been because of the restriction of input credit. Therefore, there is a good case to further liberalise the input credit regime."
The council also reduced the rate on items such as sugar-boiled confectionery, packed drinking water in 20-litre bottles, fertiliser grade phosphoric acid and bio-diesel to 12 per cent from 18 per cent.
Items for which the rates have been cut to 5 per cent from 18 per cent include tamarind kernel powder, mehandi paste in cones, LPG supplied to household domestic consumer by private distributors, scientific and technical instruments.
Goods to attract a 5 per cent GST instead of 12 per cent are articles of straw, other plaiting material, basketware and wickerwork. However, the rate on cigarette filter rods has been increased to 18 per cent from 12 per cent. Parts and accessories for the manufacture of hearing aids and de-oiled rice bran will face no tax.
However, the tax on rice bran other than de-oiled rice bran has been increased to 5 per cent from nil.
The council has decided to exempt the government's share of profit petroleum from the GST in a bid to clarify that the cost of petroleum is not taxable .
The GST Council has also decided to divide up a sum of Rs 35,000 crore between the states and the Centre from the Rs 1.35-lakh-crore corpus generated in the Integrated GST (I-GST) pool. A mechanism on sharing the rest of the corpus will be taken up later.