GST UPDATES Regarding Rates of Certain Items

GST UPDATES Regarding Rates of Certain Items 


1) Yarn & fabrics cotton -5%

2) Textile – 5%

3) Readymade garments -12%
(Apparel below Rs.1000-5%)

4) Biscuits -18%

5) Gems&Jewellery -3%

6) Diamonds -3%

7) Rough diamond – 0.25%

8) Gold&Silver – 3%

9) Beedi -28%(without cess)

10)Manmade fibre-5%

11) Footware<500-5%

12)Footware>500 -18%

13)synthetic fibre-18%

14) Packaged food item sold under registered trade mark-5%

15)Agri machinery -5%

16) Silk and jute-0%

Next meet of GST Council on 11th june at New delhi.

Input Tax Credit Under GST Not allowed in Certain Circumstances

Input Tax Credit Under GST Not allowed in Certain Circumstances




Input Tax Credits Not allowed in Following Eleven Circumstances as per Section 17(5)-

1. Motor Vehicles and other Conveyances except when such Vehicle used for –
(a) Sale of Such Vehicles or conveyance; (Like Car Dealers)
(b) Transportation of passengers; or
(c) Imparting training on driving, flying, navigating such vehicles or conveyance;
(d) Transportation of goods

2. Supply of goods or services or both –
i. Food and Beverages, Outdoor Catering, Beauty treatment, Health services, Cosmetic and plastic surgery except when dealer is in the business of sale or service of such items
ii. Membership of a club, health and fitness centre,

3. Rent-a-cab, Life insurance, Health insurance except
(i) where the Government notifies the services which are obligatory for an employer to provide to its employees
under any law for the time being in force;
(ii) when dealer is in the business of sale of service of such items

4. Travel benefits extended to employees on vacation such as LTC etc

5. Work Contract Service when supplied for construction of an immovable property (other than P & M) except where it is an input service for further supply of Work Contract Service.

6. Goods or Services or both received for construction of Immovable Property (Other than P&M) on his own account including when such good or services are used in the course or furtherance of business.

7. Composition Dealer

8. Non-resident taxable person except on goods imported by him;

9. Personal Consumption of Goods and Services

10. Lost, Stolen, destroyed, written off or disposed of by way of gift or free samples; and

11. Tax paid on account of fraud, wilful misstatement or Suppression of facts; Detention, Seizure and release of goods and conveyances in transit;



Impact Of GST On Agriculture

Impact Of GST On Agriculture


impact of gst


1) Fertiliser– Currently it attracts a VAT 0% to 8%, but under GST the rate is 12%, so the price of fertiliser will go up.

2) Pesticides– Currently it attracts an excise duty of 12% and VAT of 4-5% in some states. Under GST the rate is 18%

3) Tractor– Under GST several Components and Accessories of tractor are in the bracket of 28% where as tractors are in the bracket of 12%

4) Raw Agri Commodities– Like Rice, Wheat, Milk, Fresh Fruits, Vegitables, are under Zero Rated. This will bring major relief in Punjab where presently a VAT of 12% is imposed on wheat and Rice.

5) Fruit and Vegitables Juices– Currently taxed at 5% under VAT. Under GST the rate is 12%

6) *Fruit Jams, Jellies, Marmalades, Purees– Currently taxed at 5% under VAT. Under GST the rate is 18%

7) Dairy farming, poultry farming, and stock breeding are kept out of the definition of agriculture. Therefore these will be taxable under the GST.

8) Definition of Agriculturist– agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land—
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;

Note- The scope of the definition is restricted to an Individual or a Hindu Undivided Family. *Any other “person”* as defined in section 2(84), carrying on the activity of agriculture *will not be considered as an Agriculturist* and hence will not be exempted from registration provisions as Provided in section 23 (1)(b), of the Act.