GST Council Meeting Recommendations: Changes in GST rates on Goods

The 50th GST Council Meeting was held on 11th July 2023, i.e., Tuesday under the chairmanship of Finance Minister Smt. Nirmala Sitharaman. Many important decisions were taken, which will benefits to fulfill the concept of ease of doing business.

Recommendations relating to GST rates on Goods

Changes in GST rates of goods

It has been decided to reduce the rate on uncooked/unfried snack pellets to 5% and to regularise payment of GST on uncooked/unfried snack pellets during the previous period on a “as is basis”.

Other changes relating to goods

• It has been decided that Dinutuximab (Quarziba) drugs used in medicine will be exempt from IGST when imported for personal use.
• It has been decided to exempt IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases identified in the National Policy for Rare Diseases, 2021, when imported for personal use under certain conditions. Similarly, IGST exemption is being extended to FSMP when imported by Centres of Excellence for Rare Diseases or any person or institution on the advice of any of the Centres of Excellence named.
• It has been decided to clarify that the supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxed under the reverse charge method, and to regularise difficulties related to the previous period on a “as is” basis.
• It has been decided to lower GST from 12% to 5% on imitation zari thread or yarn known by any name in trade parlance and to regularise payment of GST linked to this topic during the previous period on a “as is” basis.
• It has been decided to amend entry 52B in the compensation cess notification to include all utility vehicles, regardless of name, as long as they meet the parameters of length exceeding 4000 mm, engine capacity exceeding 1500 cc, and ground clearance of 170 mm or greater, and to clarify that ‘ground clearance’ means ground clearance in an unladen condition.
• To encourage greater usage of this product and to safeguard the environment, the GST rate on LD slag has been reduced from 18% to 5%.
• In light of actual interpretational concerns, it has been decided to regularise the matters pertaining to trauma, spine, and arthroplasty implants for the time previous to 18.07.2022 on a “as is” basis.
• It has been decided to reduce the GST rate on fish soluble paste from 18% to 5% and to regularise payment of GST on fish soluble paste during the past period on “as is basis”.
• Due to actual interpretational concerns, it has been decided to regularise the matters pertaining to dessicated coconut from 1.7.2017 to 27.7.2017 on a “as is” basis.
• It has been decided that on pan masala, tobacco goods, and other items where it is not legally obliged to notify the retail selling price, the previous ad valorem rate as of March 31, 2023, may be reported in order to impose Compensation Cess.
• It has been agreed to put RBL Bank and ICBC Bank in the list of designated banks for which IGST exemption is possible on gold, silver, or platinum imports, as well as to amend the list of banks/entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023.
• Changes in notifications may be made as a result of the new Foreign Trade Policy 2023.
• It has been decided to resolve the difficulties with GST on areca leaf plates and mugs prior to October 1, 2019.
• Decided to regularise the issues relating to GST on biomass briquettes for the period 01.7.2017 to 12.10.2017.