Goa, September 20, 2019: Finance Minister Nirmala Sitharaman after the meeting of 37th GST Council meeting here made the following announcements:
- GST rate on slide fasteners has been reduced from 18% to 12%, marine fuel 18% to 5%, 12% to 5% on wet grinders consisting of stone as a grinder, & 5% to nil on dried tamarind.
- GST rate on caffeinated beverages raised from 18% to 28% with 12% compensation cess.
- Rate levied on cut and polished semi precious stones has been dropped from 3% to 0.25%.
- Jewellery exports to now attract zero GST.
- Aerated drink manufacturers shall not be under the composition scheme anymore.
- GST on fishmeal used by fishermen being exempted from July 2017 to September 30 this year. There was lack of clarity on their GST coverage and no tax was collected so that has been resolved.
- GST exempted on specified defence goods not manufactured in India.
- GST rate hiked on railway wagon, coaches from 5% to 12%.
- Uniform GST rate of 12% to be levied on polypropylene bags and sacks used for packing of goods.
- Anything above Rs 7501 will attract 18%. It was 28% earlier. This will benefit people who hire hotel rooms with a tariff of above Rs 7,500. Tax on outdoor catering has been reduced to 5% from existing 18% with input tax credit.
- GST Council recommends lower 12% cess on 1,500 cc diesel, 1,200 cc petrol vehicles with capacity to carry up to 13.
- Job work services related to diamonds reduced from 5% to 1.5%. For machine job works in engineering industry, GST down from 18 to 12%. But bus body building works still taxed at 18%.
- Group insurance schemes for paramilitary forces under the Home Affairs ministry to be exempted from GST.
All these rate changes will be effective from October 1, 2019.