Recommendations for Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods -As per discussions held in the 25thGST Council Meeting
The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today. These decisions of the GST Council are being communicated for general information, and will be given effect to through Gazette notifications / circulars which only shall have the force of law.
| S. No. | Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 87 | Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him. |
| 2. | 8702 | Buses, for use in public transport, which exclusively run on bio-fuels. |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
|
|
87 | All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him. |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description | ||||||||||||||||||||||||||
| 1. | 1704 | Sugar boiled confectionary | ||||||||||||||||||||||||||
| 2. | 2201 | Drinking water packed in 20 litters bottles | ||||||||||||||||||||||||||
| 3. | 2809 | Fertilizer grade Phosphoric acid | ||||||||||||||||||||||||||
| 4. | 29 or 38 | Bio-diesel | ||||||||||||||||||||||||||
| 5 | 38 | The following Bio-pesticides, –
|
||||||||||||||||||||||||||
| 6. | 4418 | Bamboo wood building joinery | ||||||||||||||||||||||||||
| 7. | 8424 | Drip irrigation system including laterals, sprinklers | ||||||||||||||||||||||||||
| 8. | 8424 | Mechanical Sprayer |
(D) LIST OF GOODS ON WHICH GST RATE RECOMMENDED FOR REDUCTION FROM 18% TO 5%:
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 13 | Tamarind Kernel Powder |
| 2. | 1404/3305 | Mehendi paste in cones |
| 3. | 2711 | LPG supplied for supply to household domestic consumers by private LPG distributors |
| 4. | 88 or any other chapter | Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 4601, 4602 | Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 5601 22 00 | Cigarette filter rods |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 5801 37 20 | Velvet fabric |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 7102 | Diamonds and precious stones |
| S.
No. |
Chapter/Heading/Sub-heading/Tariff item | Description |
| 1. | 2302 | Rice bran (other than de-oiled rice bran) |
| S.
No |
Chapter/
Heading/ Sub-heading/ Tariff item |
Description | Present Compensation Cess Rate | Compensation Cess Rate Recommended |
|
|
8702 | Motor vehicles [falling under heading 8702, as it was in excise regime] cleared as ambulances, duly fitted with all fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such vehicles.10-13 seater buses and ambulances, subject to specified conditions. | 15% | Nil |
|
|
87 | Old and used motor vehicles [medium and large cars and SUVs], on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him. | Applicable rate | Nil |
|
|
87 | All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him. | Applicable rate | Nil |
| S.
No |
Chapter/
Heading/ Sub-heading/ Tariff item |
Description | Present IGST Rate | IGST Rate Recommended |
|
|
88or any other chapter
|
Satellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads | 18% | 5% |
| S.
No |
Chapter/
Heading/ Sub-heading/ Tariff item |
Description | Present GST Rate | Modification/clarification Recommended |
|
|
27 | Poly Butylene Feed Stock & Liquefied Petroleum Gas | 18%
|
The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions. |
|
|
Any chapter | Rail coach industry | Applicable GST rate | Only the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC.Goods falling in any other chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways. |
|
|
2701 | Coal rejects | 5% + Rs. 400 PMT Compensation Cess | Coal rejects fall under heading 2701 and attract 5% GST and Rs. 400 PMT Compensation Cess.
|
It is proposed to issue notification giving effect to the recommendations of the Council on 25th January, 2018 to be effective from 00 HRS on 25th January, 2018
If judicial conscience of a final court of fact is not satisfied about the valid execution of the Will, it…
SC laid downs guidelines for use of ITRS for assessing annual income of deceased person under Motor Vehicles Act 1988…
CBDT condones delay in filing Form No. 10AB furnished electronically between 01.10.2025 to 31.03.2026. CBDT has condoned the delay in…
Supreme Court expresses serious concerns over AI generated judgments/paragraphs relied upon by the NCLT/NCLAT In a recent judgment, the Hon'ble…
ICAI to take disciplinary action for quoting very low and incommensurate fee by Chartered Accountants As per the announcement made…
NSDL latest e-TDS TCS RPU Version 6.0 from FY 2007-08 NSDL has revised the e-TDS TCS RPU utility for preparing…