GST rate rationalisation proposals before the Council: which items could see lower or higher taxes

The key focus would be on rate rationalisation as the proposal seeks replacing multiple slabs – 5 per cent, 12 per cent, 18 per cent and 28 per cent – with a broad two-slab structure – a merit rate of 5 per cent and a standard rate of 18 per cent – in addition to a special demerit rate of 40 per cent for sin and demerit goods such as pan masala, tobacco and cigarettes. The final rates will be decided after the GST Council finalises its recommendations.

Items that could see lower GST — According to the proposal to be placed before the Council, there could a sharp rejig of commodity groups so that the effective tax incidence is lower on some of them.

5% to nil:

Food items such as ultra-high temperature milk, chena or paneer, pre-packaged and labelled, pizza bread, khakhra, plain chapathi or roti, erasers

12% to nil:

Maps and hydrographic or similar charts including atlases, wall maps, topographical plans and globes; pencil sharpeners; pencils, crayons, pastels, drawing charcoals; exercise books, graph books, laboratory notebooks and notebooks; mathematical boxes, geometry boxes and colour boxes

18% to nil:

Paratha, parotta, other Indian breads

From 12% to 5%:

Condensed milk, butter and other fats such as ghee, butter oil; cheese; nuts such as almonds, pistachio, hazelnuts; dates; citrus fruits; animal fats; sausages; sugar boiled confectionery; pasta; extruded or expanded products; namkeens, bhujia, mixtures; yeasts; packaged tender coconut water; drinking water packed in 20 litre bottle; soya milk drinks; fruit pulp or fruit juice based drinks; beverages containing milk

Agriculture sector items such as fixed speed diesel engines of power not exceeding 15HP; hand pumps; sprinklers; nozzles for drip irrigation or for sprinklers; agricultural, horticultural or forestry machinery; harvesting or threshing machinery; compositing machines; tractors (except road tractors for semi-trailers of engine capacity more than 1800 cc); hand-propelled machines (e.g. hand carts, rickshaws), animal-drawn vehicles

Renewable energy items such as solar cookers; solar water heaters; bio-gas plants; solar-power based devices; solar power generators; windmills; waste to energy plants; solar lanterns; photo voltaic cells; fuel cell motor vehicles including hydrogen vehicles based on fuel cell technology

Textile items such as sewing thread of man made filaments and yarns; synthetic or artificial filament yarns; yarn of man made staple fibres; rubber thread and cord, textile covered; metallised yarn; gimped yarn; twine, cordage, ropes and cables coated with rubber or plastics; carpets and other textile floor coverings; mats including bath mats, cotton rugs; woven fabrics of metal thread; quilted textile products; textile caps; hats made of lace or other textile fabrics

Anesthetics, potassium iodate, iodine, medical grade oxygen, medicinal grade hydrogen peroxide, gauze, bandages, blood glucose monitoring system

Common-use items such as tooth powder; candles; feeding bottles; nipple of feeding bottles; jute and cotton hand bags; wooden tableware and kitchenware; umbrellas; table, kitchen or other articles of iron & steel, aluminum; brass kerosene pressure stove; sewing machines; bicycles and other cycles; parts and accessories of bicycles and cycles; cane, rattan or bamboo furniture; kerosene lamp, petromax, glass chimney and parts thereof; combs, hairpins; napkins for babies

Footwear of sale value not exceeding Rs 2,500 per pair

From 18% to 5%:

Malt; vegetable saps and extracts; glycerol; vegetable waxes; sugar confectionery (other than mishri, batasha, sakar, chikki, til revdi, gajak and sugar boiled confectionery); cocoa butter, fat and oil; cocoa powder; chocolates; goods obtained from cereal flakes such as cornflakes (other than puffed rice, muri); pastry, cakes, biscuits, wafers; extracts, essences and concentrates of tea; soups and broths; ice cream; plant-based milk drinks; gelatin

Fertiliser sector inputs such as sulphuric acid, nitric acid, ammonia, gibberellic acid, micronutrients covered under 1(g) of Schedule 1, Part (A) of the Fertilizer Control Order

Tyres for tractors; rear tractor tyres; tube for tractor tyres; agricultural diesel engines of cylinder capacity exceeding 250 cc for tractor; hydraulic pumps for tractors; rear tractor wheel rim, bumpers

Textile items such as synthetic or artificial staple fibres; waste of man made fibres

Thermometers, instruments and apparatus for medical, surgical, dental or veterinary usage

Common-use items such as talcum powder, hair oil, shampoo, dental floss, toothpaste, shaving cream, shaving lotion, aftershave lotion, soap, tooth brushes

Items that could see higher GST

From 5% to 18%:

Coal; briquettes, similar solid fuels manufactured from coal; lignite; peat

From 12% to 18%:

Apparels and clothing accessories, cotton quilts, products made of quilted textile material and other made up textile articles of sale value exceeding Rs 2,500 a piece

From 28% to 18%:

Air-conditioning machines, dishwashing machines, television sets (including LCD and LED TVs), monitors and projectors

New pneumatic tyres, of rubber; road tractors for semi-trailers with engine capacity more than 1800 cc (cubic capacity), motor vehicles for the transport of ten or more persons; petrol or LPG driven motor vehicles of engine capacity not exceeding 1200 cc and of length not exceeding 4 metre; diesel driven motor vehicles of engine capacity not exceeding 1500 cc and length not exceeding 4 metre

Three wheeled vehicles; ambulances; motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motors for propulsion, of engine capacity not exceeding 1200 cc and of length not exceeding 4 metre; motor vehicles with both compression-ignition internal combustion piston engine (diesel or semi-diesel) of engine capacity not exceeding 1200 cc and of length not exceeding 4 metre; chassis fitted with engines; motorcycles of engine capacity not exceeding 350 cc and cycles fitted with an auxiliary motor; rowing boats or canoes

Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements

18% to 40%:

Other non-alcoholic beverages

28% to 40%:

Pan masala, aerated waters and all goods containing added sugar; caffeinated beverages; carbonated beverages of fruit drink or carbonated beverages with fruit juice

Motor cars and other motor vehicles other than those in 18% slab; motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motors for propulsion, of engine capacity over 1200 cc and of length over 4 metre; motor vehicles with both compression-ignition internal combustion piston engine (diesel or semi-diesel) of engine capacity over 1200 cc and of length over 4 metre

Motorcycles of engine capacity exceeding 350 cc; aircraft (for example, helicopters, aeroplanes) for personal use; yacht and other vessels for pleasure or sports

No change in GST rate

5%: Apparels not exceeding Rs 2,500 a piece; other made up textile articles; cotton quilts of sale value not exceeding Rs 2,500 a piece

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