Basic Impact on Goods and Services after Rate Reduction
New Delhi:- The Goods and Service tax (GST) council meeting held on Thursday at Vigyan Bhavan, New Delhi. In Meeting gave relief to the common people and reduced GST on 29 items to zero percent. Many of these handicraft items are included which.
In the GST Council meeting, the government has taken a major decision and has changed the GST rate of 29 Goods and 53 Services.
New GST Rates will be applicable from January 25.
Arun Jaitley said that the GST rate has also been reduced on council services in 53 categories.
The Following Goods And Services are Majorly Affected: —
- GST Council reduced the tax rate for private companies’ domestic LPG from 18% to 5%.
- Tax on diamonds and Precious stones has been reduced from 3% to 0.25%.
- Tax rates have also reduced on Used cars from 28% to 18%.
- The cess has been finished on vehicles used as an ambulance, which is still 15%.
- Mining of petroleum crude, drilling services, mining of natural gas, drilling services has been reduced to 12%.
- Tax on fertilizer grade phosphoric acid and bio-diesel has been reduced from 18 to 12 percent.
- GST rate has been reduced on Drip irrigation system including laterals, sprinklers from 18 to 12%.
- GST rate has been reduced on Drinking water packed in 20-liter bottles From 18% to 12%.
- GST rate has been reduced from 18 to 5% on tailoring services.
- Services under the RTI Act have been exempted from GST.
- Services such as Theme Park, Water Park, Joy Ride, Mary Go Round, Go Karting Ballet will now be 18% GST, which was earlier 28%.
- Transportation services have been exempted from GST on sending goods through a plane or via shipments outside India till 30th September 2018.
- GST has been reduced from 18% to 12% on Metro, Monorail Construction Projects.
- For manufacturing of leather goods and footwear, the GST on job work service has been reduced to 5 percent.
- Under the Prime Minister’s Housing Scheme (PMAY), the Constitutional rate of GST will be applicable on the construction of the house under the declared credit link subsidy scheme for EWS, LIG, MIG One and MIG One.
- All the services given for admission or examination in the Education Institute have been exempted from GST. He has also been exempted from the GST on entrance fees taken for the entrance examination.
- Students, faculty or staff have also been exempted from GST on Transportation Services. But this exemption has been given to the Educational Institute till Higher Secondary.
- The government’s profit from petroleum was also excluded from GST.
- Tax rates increased to 5 percent on rice bran which had no tax before. Apart from this, the rate of De-Oiled Rice Bran has been reduced.
- With tax credits on taxation of petroleum products, the GST has been reduced to 12% and tax on GST has been reduced to 5% on these products without tax credits.