Goods and Services Tax (GST) Rates Slashed Down: Take a View on This
Yes! It could be the big news for you as the GST rates of 27 goods and 12 services have been lowered down. The Finance Minister, Arun Jaitley, has declared some of the changes in the GST rates for selected items. In the first two months when the GST rollout on July 1, 2017, the government has collected nearly Rs. 1.9 lakh crore as GST. The high rate made the small businesses and exporters in a state of panic.
However, the finance minister has made certain changes in the tax rates on some products and services to cut down the rough edges. Let’s take a view on the changes which were announced on October 06, 2017.
The list below shows the revised GST rate of 27 goods:
In the slide from 12 percent to 5 percent, the names of the items listed below has been announced. The GST on these items was 12 percent in the earlier format, and now it has been reduced to 5 percent. The items include:
- Dried mango, Khakra, & Plain Chapati
- Local branded namkeen
- Unbranded ayurvedic medicines
- Paper wastes or scraps
- Real zari
In the slide of 18 percent to 5 percent, the names of following products have been announced:
- Biomass briquettes
- Scrap of glass or cullet
- Rubber wastes, plastic wastes, parings or scrap
In the slide of 18 percent to 12 percent, the names of following items have been announced:
- Yarn of man-made staple fibers
- Sewing thread of man-made staple fibers
- All synthetic, and artificial filaments yarn
Furthermore, some of the products earlier bearing 28 percent GST has been pushed down to attract the GST of 5 percent:
- E-waste (28/18% to 5%)
- Hard rubber scrap
Finally, in the slide of 28 percent to 18 percent, the names of some items have been uttered to affect their GST rate, they include:
- Power driven pumps which are used for handling water
- Parts of speed diesel engines of power not exceeding 15HP
- Stationary items like letter clips, files, letter corners, paper clips, indexing tags, etc., of base metal.
- Poster colour
- Modeling paste for children amusement
Last but not the least, in the queue of the products, the GST rate of ‘Duty Credit Scrips’ has also been pushed down to nil from 5 percent. Other than these changes, the rate has been lowered down in some of the services too.
The list below shows the revised GST rate of 12 job work services:
The following services will be charged at GST rate of 5 percent as the changes made on October 06, 2017.
- Job work services (related to all products under chapter 71 of GST)
- Job work (related to all food and food products under chapter 1 to 22 of the HS code, except packaging of processed milk)
- Job work services (related to products under chapter 23 of the HS code, except the ‘DOG OR CAT FOOD, PUT UP FOR RETAIL SALE.’
- Job work related to manufacturing of clay bricks under chapter 69
- Printing services on job work related to chapter 48 or 49.
Henceforth, it can prove to be an effective step ahead for the well-being of the country’s economic condition. The reduced tax load always allow you to save more on your income and also provides you the potential to earn more. Similarly, the ELSS fund helps you to save more on your taxable income and manage your finances efficiently with the objective of wealth creation. To opt for investment in the ELSS scheme get associated with MySIPonline, and start managing your tax load efficiently. For more information, stay tuned to our daily blogs.
LTCG Tax Is Not As Negative As it Seems; Here’s Why?46304 min read Jan 01, 1970
Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?45353 min read Jan 01, 1970
Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take46293 min read Jan 01, 1970
Budget 2018: Frequently Asked Questions(FAQs) Concerning LTCG Tax Proposal49315 min read Jan 01, 1970