Recent Changes in GST Rates & Analysis of Other Important Provisions

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CBIC has issued various Notifications related to changes incorporated in GST rates for various Goods and service as suggested in 47th GST Council Meeting on 13.07.2022. Summary of the said notifications are tabulated as under:

1. CHANGES IN GST RATES OF CONSTRUCTION SERVICES:

  Sr.  ServiceDescription  ServiceRecipientUpto 17‐07‐22From 18‐07‐22
1.Composite supply of works contract by way of construction, repairs, maintenance, etc. of: Historical Monument or archaeological site Canal, dam, or other irrigation works Pipeline, conduit or plant for water supply / Water treatment / sewerage treatment or disposal Works meant predominantly for use other than for commerce, industry, business or profession Educational, Hospital or any art and cultural establishment Residential complex meant for self‐use of Government employees [Entry no. 3 (iii) & (vi) of Notification No. 11/2017‐CTR]  Government* or Local Authority    12%    18%
      Governmental Authority/ Entity**      18%      18%
2.Composite supply of works contract provided by a sub‐ contractor to the main contractor where the main contractor is providing services as specified above (Sr. 1 above) [Entry no. 3 (ix) of Notification No. 11/2017‐CTR]Government* or Local Authority  12%  18%
Governmental Authority/ Entity**  18%  18%
3.Composite supply of works contract involving predominantly earth work (more than 75% of total contract value) [Entry no. 3 (vii) of Notification No. 11/2017‐CTR]Government* or Local Authority  5%  12%
Governmental Authority/ Entity**18%18%
4.Composite supply of works contract provided by a sub‐ contractor to the main contractor where the main contractor is providing services as specified above (Sr. 3 above) [Entry no. 3 (x) of Notification No. 11/2017‐CTR] * Government includes Central Government, State Government or Union territory ** Governmental Authority like GIDC, MIDC etc. ** Government Entity like SSNNL, BSNL etc.Government* or Local Authority  5%  12%
Governmental Authority/Entity**18%18%
5.Composite supply of works contract by way of construction, repairs, maintenance, etc. of a road, bridge, tunnel, or terminal for road transportation for use by general public an original works pertaining to Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana an original works pertaining to the ln‐situ redevelopment an original works pertaining to the “Beneficiary led individual house construction / enhancement” an original works pertaining to the Economically Weaker Section (EWS) houses an original works pertaining to the houses constructed or acquired under the Credit Linked Subsidy Scheme for EWS/ LIG/MlG‐1/MlG‐2 a pollution control or effluent treatment plant, except located as a part of a factory a structure meant for funeral, burial a building owned by an entity regd. u/s 12AA or 12AB of the I.T. Act, 1961, which is used for carrying out the activities of providing, centralized cooking or distribution, for mid‐day meals under the mid‐day meal scheme [Entry no. 3 (iv) of Notification No. 11/2017‐CTR]Any Person12%18%
6.Composite supply of works contract by way of construction, etc. of original works pertaining to railways, including monorail and metro a single residential unit otherwise than as a part of a residential complex low‐cost houses up to a carpet area of 60 sq mtr per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ to low‐cost houses up to a carpet area of 60 sq mtr per house in a housing project approved by the competent authority under‐ (1) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government.Any Person12%18%
7.Sub‐contractor providing Works Contract Services to a Developer engaged in construction of affordable residential apartments, in a project commences on or after 01‐04‐2019, or in an ongoing project. [Entry no. 3 (va) of Notification No. 11/2017‐CTR]    Any Person    12%    18%
8.Construction of an apartment in an ongoing project under the specified schemes for affordable housing project as referred in point no 5 & 6 above. [Entry no. 3 (ie) of Notification No. 11/2017‐CTR]Any Person8%12%

2. CHANGES IN GST RATES ON ACCOMMODATION SERVICES:                                

No.DescriptionUpto 30‐09‐19From 01‐10‐19 to 17‐07‐22From 18‐07‐22
1.Room Rent per Day ≤ Rs. 1,000ExemptExempt12%
2.Room Rent per Day > Rs. 1,000 but ≤ Rs. 2,50012%12%12%
3.Room Rent per Day > Rs. 2,500 but ≤ Rs. 7,50018%12%12%
4.Room Rent per Day > Rs. 7,50028%18%18%

Exemption has been omitted

Earlier in respect of accommodation services exemption by hotel, inn, guest house, club or campsite having value supply below or equal to Rs 1000/unit/day have been omitted and now the said services will be taxable from 18.07.2022

Mechanism for renting residential property under GST will change from 18th July 2022. Renting an immovable property is considered a supply of service and it attracts GST @ 18% (SAC Code – 9963/9972).

  • Applicability of GST on residential property up to 17th July 2022: GST was not applicable/exempted if the residential property was rented out to any person (whether a registered or unregistered person under GST) up to 17th July 2022.
  • Liability to pay GST did not arise as it was specifically exempted vide CGST (Rate) Notification no. 12/2017 dated 28.06.2017

Applicability of GST on residential property w.e.f. 18th July 2022:

GST will be applicable if the residential property is rented out to a registered person under GST w.e.f. 18th July 2022.

FAQ – Accomodation Service:

Q. What shall be the applicable rate of tax? It may be noted that the rate of 12% (where the value of supply is not more than Rs. 7,500/unit/day) is applicable in respect of the “Hotel accommodation” and the said expression has been defined under Explanation 4(xxxiv) of NN 11/2017-CT (Rate). It appears that the said Explanation will not include the supply of residential dwellings for use as a residence. Will it thus imply that it shall attract the GST @ 18%? 

It may be noted that Sr. No. 7 of the rate notification covers all types of accommodation, food and beverage services falling under heading 9963. SAC 996329 includes other room or unit accommodation services nowhere else classified. Hence even the renting of residential dwellings will fall under the heading 9963. Also, the residual entry in the said Sr. No. 7 (i.e., 7(vi)) covers all residual accommodation, food and beverage services other than the specified list. However, the

Explanation to the said Sr. No. 7(vi) indicates that it covers “hotel accommodation” having the value of supply exceeding Rs. 7,500/unit/day. It may also be noted that the residual entry (at Sr. No. 35) that includes other services nowhere else classified and hence falling under SAC 999799 cannot be applied to the present situation since the services in question are indeed covered under SAC 996329. The entries in the rate Notification can apply only if the supply in question matches the SAC as well as the description. Further it is a cardinal rule of interpretation that the classification under a residual entry shall be the last report. Hence, we suggest that the Government must consider an amendment in NN 11/2017-CT (Rate) to provide a separate rate (preferably 12%) for the services in question.

Q. Whether a proprietor registered under GST and renting a residential unit for his personal use as a residence will be liable to pay the tax under RCM?

It may be noted that the exemption is denied when the residential dwelling is rented to a registered person. However, it may be noted that the liability to pay the tax under RCM in the present context emanates from Sec. 9(3) of the CGST Act, 2017 which seeks to apply all the provisions of the Act to the ‘recipient’ where such recipient is made liable to pay the tax. Sec. 9(1) of the said Act provides for the levy of tax on the ‘supply’ which has been defined u/s 7 of the said Act to cover transactions incurred in the course or furtherance of business. Hence a view can be taken that a proprietor taking a residential dwelling on rent for his own use is not the recipient (since it is not for the purpose of business) and hence shall not be liable to pay the tax under RCM. The said view also supports the intent of the GST Council. The press release after the 47th meeting clearly suggests that the exemption is withdrawn only in respect of the renting of a residential dwelling to business entities (registered persons). Hence only inward supplies of the said registered persons (in the capacity of a business entity) can be liable to tax.  

Q. Whether the tax shall be payable if the employee takes the residential dwelling on rent and seeks reimbursement of the cost from the employer?

The term ‘recipient’ who has been made liable to pay the GST under RCM has been defined to mean the person who is liable to pay the consideration. Hence if the employee has taken the residential dwelling on rent, then such employee shall be the ‘recipient’ and being unregistered shall not be liable to pay the GST. Reimbursement also may not attract tax as it is merely a transaction in money.

Q. Whether the transactions in the nature of providing long-term accommodation to students (such as PGs, etc.) shall be liable to tax?

One has to consider whether the supplies in question qualify as ‘hotel accommodation’ or not since the definition of the said expression includes supply, by way of accommodation in ‘hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes’. The term ‘other commercial places’ has to be interpreted applying the principle of noscitur a sociis and hence can be said to include such places that provide short-term accommodation (similar to hotels, guest houses, etc.). Hence it cannot cover long-term accommodation. Further, even after the amendment, the services in terms of a residential dwelling provided to unregistered persons continue to be exempt. Hence in our view, such long-term accommodations of residential dwellings to unregistered persons can be eligible for the exemption.

3. CHANGES IN GST RATES ON GTA SERVICES:                                                    

No.DescriptionLiability to pay taxRCM/ FCMRate of TaxITC availability
1.If GTA does not exercise option to pay TaxRecipientRCM5%Not available
2.If GTA exercises an option to pay TaxGTAFCM5%Not available
3.If GTA exercises an option to pay TaxGTAFCM12%Available
  1. The option by GTA to itself pay GST on the services supplied by it during a Financial Year (either @ 5% or 12%) shall be exercised by making a declaration in Annexure V on or before the 15th March of the preceding Financial Year. The said declaration is required to be submitted before the jurisdictional GST Authority.  
  2. The option for the Financial Year 2022-2023 shall be exercised on or before the 16th August, 2022. The invoice for the supply of the service charging the tax under FCM may be issued during the period from the 18th July, 2022 to 16th August, 2022 before exercising the option for the financial year 2022-2023 but in such a case the supplier shall exercise the option to pay GST on its supplies on or before the 16th August, 2022.  
  3. GTA exercising the option to discharge tax under FCM (5% or 12%) is required to state the following declaration in the invoice:

 “Declaration

  I/we have taken registration under the CGST Act, 2017 and have exercised the option to pay tax on services of GTA in relation to transport of goods supplied by us during the Financial Year _____ under forward charge.”.”

Inward supplies received by GTA for their business are mainly in the nature of purchase/lease of trucks and repairs & maintenance of such trucks. It may be noted that ITC is available to GTA if it opts to pay the tax under FCM @ 12%. ITC is blocked only if either GTA opts to pay the tax under FCM @ 5% or the recipient is made liable to pay the tax under RCM @ 5%. Now the aforesaid amendment on one hand stipulates that the option of payment of tax under FCM is required to be selected at the beginning of the FY and cannot be changed during the said FY, however it permits changing of the option to pay the tax even though under the FCM @ 5% or 12% at a different time or even the same time for different supplies. Hence consider a situation where a GTA before the beginning of the FY opts to pay the tax under FCM and initial for say six months pays the tax @ 12% (with ITC) and then decides to pay the tax @ 5% (without ITC). It may be noted that from the perspective of the recipient of the GTA services the situation is neutral since the recipient shall be eligible for the ITC (5% or 12%) subject to other general conditions in law.

Vide Notification No. 04/2022-CT (Rate) dt. 13.07.2022 the value-based exemption where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1500/- or where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750/- have been omitted w.e.f. 18.07.2022. Hence the tax shall be payable in such situations.

4. CHANGES IN GST RATES ON SERVICES BY DEPARTMENT OF POST:                   

  ServiceDescriptionService Recipient  ConsiderationTaxabilityFCM/RCM
Upto 17‐07‐2022From 18‐07‐2022Upto 17‐07‐2022From 18‐07‐2022
‐ Speed Post ‐ Express Parcel Post ‐ Life insurance ‐ Agency service  Any Person  Any  Taxable  Taxable  FCM  FCM
‐ Post Card ‐ Inland Letter ‐ Book Post ‐ Ordinary Post (Envelopes weighing less than 10 gms)      Any Person      Any      Exempt      Exempt      ‐      ‐
      Services provided by Dept. of Post other than aboveBusiness Entity having aggregate T/o less than Reg. Limit    Any    Exempt    Taxable    ‐    FCM
Govt. or Local AuthorityAnyExemptTaxable‐FCM
Other than above≤ 5000ExemptTaxable‐FCM
> 5000TaxableTaxableRCMFCM

5. TOUR OPERATORS SUPPLYING SERVICE TO FOREIGN TOURIST:

Descriptionof ServiceServiceRecipientUpto 17‐07‐2022From 18‐07‐2022
Tour operator services performed wholly in IndiaIndian Tourist5%5%
Tour operator services performed wholly outside IndiaIndian Tourist5%5%
Tour operator services partly performed in India & partly outside IndiaIndian Tourist5%5%
Tour operator services performed wholly in IndiaForeign Tourist5%5%
Tour operator services performed wholly outside IndiaForeign TouristNilNil
Tour operator services partly performed in India & partly outside India ‐      Proportionate value of Service in India ‐      Proportionate value of Service outside India  Foreign Tourist    5% 5%    5% Nil

Note:

  1. Value of services perform outside India shall be lower of following:
    1. Consideration proportionate to no. of days for which tour is performed outside India
    2. 50% of Total Consideration charged.
  2. In making the above calculations, any duration of time equal to or exceeding 12 hours shall be considered as one full day and any duration of time less than 12 hours shall be taken as half a day

6. CHANGES IN GST RATES ON SERVICES PROVIDED BY HOSPITAL:                       

Room CategoryPer Day Room ChargesTaxabilityRate
  Per Day Room Charges by Hospitals (Other than ICU/ CCU/ ICCU/ NICU)Upto Rs. 5,000/‐ExemptNil
Rs. 5,001/‐Taxable5%
Rs. 7,000/‐
Per Day Room Charges by Hospitals for ICU/ CCU/ ICCU/ NICUUpto Rs. 5,000/‐  Exempt  Nil
Rs. 7,000/‐

1.  Further the expression ‘clinical establishment’ and ‘health care services’ have been inserted under paragraph 4 of the NN 11/2017-CT (Rate) as under:

  1. ‘clinical establishment’ means, – a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;  
  2. ‘health care services’ means, – any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

2. It may be noted that the expression Intensive Care Unit (ICU)/Critical Care Unit (CCU)/Intensive Cardiac Care Unit (ICCU)/Neo natal Intensive Care Unit (NICU) has not been defined in the given notification. Dictionary definitions are as under: 

    1. Intensive Care Unit – A special department of a hospital or health care facility that provides intensive care medicine. Intensive care units cater to patients with severe or life-threatening illnesses and injuries, which require constant care, close supervision from life support equipment and medication in order to ensure normal bodily functions.  
    1. Critical Care Unit – Similar to Intensive Care Unit  
    1. Intensive Cardiac Care Unit – A hospital ward specialized in the care of patients with heart attacks, unstable angina, cardiac dysrhythmia and (in practice) various other cardiac conditions that require continuous monitoring and treatment.  
    1. Neo natal Intensive Care Unit – An intensive care unit (ICU) specializing in the care of ill or premature newborn infants. Neonatal refers to the first 28 days of life.  

3. Therefore, the GST shall not be levied on room charges (even if it exceeds Rs. 5,000/day) if the same is in respect of the aforementioned ICU, CCU, ICCU or NICU.

  • There can be issues in valuation. It may be noted that the levy of GST u/s 9(1) of the CGST Act, 2017 is on the value determined u/s 15 of the CGST Act, 2017. Hence it is incumbent on the clinical establishments to consider the said provisions and arrive at the defendable value of the taxable supply in question.
  • At times the insurance companies may bear the expense for the treatment that includes the room charges. Hence an issue may arise as to whether the insurance companies will be eligible for the ITC of the tax charged by the hospitals. The answer appears to be no since the recipient of the supply shall be the patient and hence the insurance companies may not be able to avail of the ITC.  
  • The aforementioned notification can be considered to have been issued contrary to the provisions of the Act. This is so because the provisions contained u/s 8(a) of the CGST Act, 2017 provide for the determination of tax liability (that even includes determination of exemption) in case of a composite supply based on the principal supply. Certainly, the test of composite supply as provided u/s 2(30) of the said Act can be said to be fulfilled when a patient avails various supplies (that includes treatment, medicine, stay, food, etc.) that are naturally bundled and supplied in conjunction with each other wherein undisputedly the principal supply is ‘health care services’ in terms of treatment of the illness in question. It must be noted that the definition of ‘health care services’ do not exclude such elements in terms of stay, food, etc. as part of the treatment. It is a settled law that the notification cannot be issued contrary to the provisions of the Act. Therefore in times to come we shall have to see the decisions of the Courts on this issue. Till such time the hospitals may not collect the tax separately and rather deposit the same under protest to reserve the right to seek the refund.

7. CHANGES IN GST RATES OF OTHER SERVICES:                                                   

No.DescriptionUpto 17‐07‐2022From 18‐07‐2022
Rate rationalisation to remove inverted duty structure on Services
1.Services supplied by foreman to Chit Fund12%18%
2.Job Wok in relation to processing of hides, skins and leather5%12%
3.Job work in relation to manufacture of leather goods and footwear5%12%
4.Job work in relation to manufacture of clay bricks5%12%
Other GST Rate changes on Services
1.Transport of goods and passengers by ropeways18%5% (With ITC of Service)
  2.Renting of truck/goods carriage where cost of fuel is included in the consideration charged from the service recipient.18%12%
Withdrawal of Exemptions
1.Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio‐medical waste treatment facility to a clinical establishment. Nil12%
2.Transport of passengers by Air to and from North‐East States & Bagdogra in other than Economy class Nil12%
3.Transportation by Rail / Vessel of railway equipment & material Nil5%
4.Storage or warehousing of nuts, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee & tea. Nil18%
5.Fumigation in a warehouse of agricultural produce Nil18%
6.Services by RBI, IRDA, SEBI and FSSAI Nil18%
7.Services provided by GSTN Nil18%
8.Services by way of renting of residential dwelling for use as residence except where the residential dwelling is rented to a registered person (Tax shall be paid by such registered person under RCM) Nil18%
9.Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to it. Nil18%
10.Training or coaching in recreational activities relating to arts or culture supplied by any person other than individual Nil18%
11.Training or coaching in recreational activities relating to sports supplied by charitable entitiesNil18%
12.Services provided by a goods transport agency, by way of transport in a goods carriage of– goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees; goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;Nil5% or 12%
13.Services by way of slaughtering of animals.Nil18%

8. TAX ON PRE‐PACKAGED AND LABELLED SPECIFIED FOOD ITEMS:

  1. Prior to 18.07.2022, specified food items sold in container bearing registered brand name (where right on brand has not been surrendered) were subject to GST @ 5% / 12%. On the other hand, specified foods items which are not branded and not sold in unit container or where right on registered brand has been forgone; then GST was not leviable.
  2. However, in 47th GST Council meeting, the scope of above exemption has been revised. As suggested in meeting, irrespective of registered brand name or foregoing the right on brand, GST shall be leviable on specified food items if they are ‘pre‐packaged and labelled’. Now, there will be no relevance of brand while classifying such goods. List of specified goods are listed as under:
DescriptionHSNPre‐packaged & labelled (Rate)Otherwise (Rate)
Meat and edible meat offal0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 02105%Nil
Fish and crustaceans, molluscs and other aquatic invertebrates0303, 0304, 0305, 0306, 0307, 0308, 03095%Nil
Curd, Lassi, Butter milk04035%Nil
Chena or paneer & Natural Honey0406, 04095%Nil
Guts, bladders and stomachs of animals (other than fish), whole and pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked.05045%Nil
Dried leguminous vegetables; Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers0713, 07145%Nil
Dried makhana085%Nil
All Cereals10, 1001, 1002, 1003, 1004, 1005, 1006, 1007, 10085%Nil
Products of the milling industry; malt; starches; inulin; wheat gluten.1101, 1102, 1103, 1105, 11065%Nil
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery; Khandsari Sugar1701 or 17025%Nil
Puffed rice or flattened or beaten rice, or rice coated with sugar or gur19045%Nil
Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form210612%5%
All goods i.e. animal or vegetable fertilisers or organic fertilisers31015%Nil
Frames and mountings for spectacles, goggles or the like, and parts thereof90035%Nil
Other vegetable textile  fibres; paper  yarn  and woven fabrics of paper yarn5305, 5306, 5307, 53085%Nil
Tender coconut water2009 89 9012%5%
  1. Meaning of Pre‐packaged and labelled in terms of Legal Metrology Act:

“The expression ‘pre‐packaged and labelled’ means a ‘pre‐packaged commodity’ as defined in clauses (l) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) where, the package in which the commodity is pre‐ packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.”

“pre‐packaged commodity”means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre‐ determined quantity.

In simple terms, meaning of ‘pre‐packaged and labelled’ is explained as under:

    1. The item must be placed in package
    2. Packagemust be of pre‐determined quantity
    3. The item must be packed without presence of purchaser
    4. It shall contain declarations as required under LMA and Rules made thereunder

Rule 6 of Legal Metrology rules, 2011 provides for following items in the declaration of pre‐packaged food items:

      1. Nameofmanufacturer
      2. Addressof the manufacturer
      3. Commonname of commodity
      4. Net quantity,
      5. Mfg. Month & Year,
      6. Retail sale price of the package
      7. Where the sizes of the commodity contained in the package are relevant, the dimensions of the commodity contained in the package
      8. Such other matters as are specified in these rules
  2. Goods where label is securely affixed thereto, and which requires to bear declarations under the provisions of the and the Rules made thereunder.
  3. The summary of related provisions of Legal Metrology Act, 2009 are listed as under:
  • Sec: 18 of the said Act mandates declaration on the pre‐packaged commodity for manufacturing, packing, selling, importing, distributing, delivering, offering, exposing or possessing any package.
  • Rule: 6 mandates that items for retail sale must contain details like Name of manufacturer, common name of commodity, Quantity, Mfg. month & year, etc.

        4. However, exemption from mandatory declaration is given to following in accordance with Legal Meteorology Packaged Commodity Rules, 2011:

    • Exemptions in case of Retail Sale (Rule 3):
  2. Packaged commodities meant for industrial consumers or institutional consumers who buy packaged commodities directly from the manufacturer for use by that institution like transportation, Airways, Railways, Hotels, Hospitals or any other service institutions.
  3. Packages of commodities containing quantity of ≥ 25 kgs or 25 ltrs;
    • General Exemptions (Rule 26):
  2. The net weight or measure of the commodity is ≤ 10 g or 10 ml, if sold by weight or measure.
  3. Any package containing fast food items packed by restaurant or hotel and the like.
  4. It contains scheduled formulations and non‐scheduled formulations covered under the Drugs (Price Control) Order, 2013 made under section 3 of the Essential Commodities Act, 1955; and
  5. Agriculturalproduce in packages above 50 kgs.
  6. Articles other than above shall bear mandatory declaration on packaging. Further, Sec: 24 of said Act mandates certain declarations for all wholesale packaging.

SUMMARY:

ParticularsApplicablerates
Rates up to 17‐07‐2022
Pre‐packaged and labelled specified goods ‐ Where right on brand has not been foregone ‐ Where right on brand has been foregone  5%/12% Nil
Goods sold without any label or in looseNil
Ratesfrom18‐07‐2022
Pre‐packaged and labelled specified goods ‐ Declaration exempted ‐ Declaration not exempted  Nil 5%/12%
Goods sold without any label or in looseNil

9. GST RATE CHANGES IN GOODS:                                                                           

  No.  Description  HSNRate upto17‐07‐22Rate from18‐07‐22
 RateRationalizationtoremoveInverted Duty Structure
1.Printing, writing or drawing ink321512%18%
2.Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake‐servers8211, 8213, 8214, 8214 20 20, 821512%18%
3.Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube‐well turbine pumps, submersible pumps; Bicycle pumps8414, 8414 20 10, 8414 90 1212%18%
4.Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc; Pawan Chakki that is Air Based Atta Chakki; Wet grinder8437, 84, 85095%18  
5.Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery8433, 843412%18%
6.LED Lamps, lights and fixture, their metal printed circuits board8539, 940512%18%
7.Drawing and marking out instruments9017 2012%18%
8.Solar Water Heater and system8419 195%12%
9.Prepared/finished leather/chamois leather/ composition leathers4107, 4112, 4113, 4114, 41155%12%
 Other GST Rate Changes in Goods   
1.Tar (whether from coal, coal gasification plants, producer Gas plants and Coke Oven Plants)27065%/18%18%
2.Ostomy Appliances300612%5%
3.Orthopedic appliance‐ Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens902112%5%
4.Tetra Pak (Aseptic Packaging Paper)481112%18%
5.Cut and Polished diamonds7102, 71040.25%1.5%
6.Petroleum operations undertaken under petroleum exploration licenses or mining leases, granted by the CG or any SG to the Oil and Natural Gas Corporation or Oil India Limited on nomination basis, or Petroleum operations undertaken under specified contracts, or Petroleum operations undertaken under specified contracts under the New Exploration Licensing Policy, or Petroleum operations undertaken under specified contracts under the Marginal Field Policy (MFP), or Coal bed methane operations undertaken under specified contracts under the Coal Bed Methane Policy. Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)‐5%12%
7.Scientific and technical instruments supplied to public funded research institutes‐5%Applicable Rate
8.E‐waste84 or 855%18%
9.Purified water220118%Nil
 Withdrawal of Exemption:   
1.Cheques, lose or in book form4907Nil18%
2.Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed4905Nil12%
3.Parts of goods of heading 8801 (8801 ‐ Balloons And Dirigibles, Gliders, Hand Gliders And Other Non‐Powered Aircraft)8807Nil18%

Limitation: The purpose of this article is for knowledge sharing purpose. Views expressed in this note are personal views of the author. The same should not be construed as professional advise

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