The GST rate cut, as announced by interim finance minister Piyush Goyal during the GST Council meeting on 21 July, comes into effect today. About 88 items—from refrigerators and washing machines to toiletries and cosmetics—are set to get cheaper as they were moved from the highest tax bracket of 28% to 18%. Sanitary napkins were exempt from GST, but their prices may go up as manufacturers will not be able to avail of input tax credit on raw materials. Finance ministry officials, however, are of the opinion that prices should come down as input tax credit claimed was around 2-4%, while the GST rate was 12%.
Here’s a list of items on which GST rate cut will be applicable from today:
GST rate cut items—28% to 18%:
■ Paints and varnishes (including enamels and lacquers)
■ Glaziers’ putty, grafting putty, resin cements
■ Refrigerators, freezers and other refrigerating or freezing equipment including water coolers, milk coolers, refrigerating equipment for leather industry, ice cream freezer, etc.
■ Washing machines
■ Lithium-ion batteries
■ Vacuum cleaners
■ Electrical appliances such as food grinders and mixers and food or vegetable juice extractor, shavers, hair clippers, etc.
■ Storage water heaters and immersion heaters, hair dryers, hand dryers, etc.
■ Televisions up to the size of 68 cm
■ Crane lorries, fire-fighting vehicle, concrete mixer lorries, spraying lorries
■ Works trucks (self-propelled, not fitted with lifting or handling equipment) of the type used in factories, warehouses, dock areas or airports for short transport of goods
■ Trailers and semi-trailers
■ Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations
GST rate cut items—28% to 12%:
■ Fuel cell vehicles (also exempt from compensation cess)
GST rate cut items—18%, 12%, 5% to Nil:
■ Stone/marble/wood deities
■ Rakhi (other than that of precious or semi-precious material)
■ Sanitary napkins
■ Coir pith compost
■ Sal Leaves and their products and sabai rope
■ PhoolBhari Jhadoo (Raw material for brooms)
■ Khali dona
■ Circulation and commemorative coins, sold by Security Printing and Minting Corp. of India Ltd (SPMCIL) to ministry of finance.
GST rate cut items—12% to 5%:
■ Chenille fabrics and other fabrics
■ Handloom dari
■ Phosphoric acid (fertilizer grade only).
■ Knitted cap/topi having retail sale value not exceeding Rs 1000
■ Handmade carpets and handmade textile floor coverings (including namda/gabba)
■ Handmade lace
■ Handwoven tapestries
■ Handmade braids and ornamental trimming in the piece
GST rate cut items—18% to 12%:
■ Bamboo flooring
■ Brass kerosene pressure stove
■ Hand operated rubber roller
■ Zip and slide fasteners
■ Handbags including pouches and purses; jewellery box
■ Wooden frames for painting, photographs, mirrors, etc.
■ Art ware of cork (including articles of sholapith)
■ Stone art ware, stone inlay work
■ Ornamental framed mirrors
■ Glass statues (other than those of crystal)
■ Glass art ware (including pots, jars, votive, cask, cake cover, tulip bottle, vase)
■ art ware made of aluminium, iron, brass, copper/copper alloys, electroplated with nickel/silver
■ Handcrafted lamps (including panchloga lamp)
■ Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes, etc., (including articles of lac and shellac)
■ Ganjifa card
GST rate cut items— 18% to 5%:
■ Ethanol for sale to oil marketing companies for blending with fuel
■ Solid bio fuel pellets
■ Rate change made in respect of footwear
■ Footwear having a retail sale price exceeding ₹ 1,000 per pair will continue to attract 18%