Studycafe | Dec 21, 2019 |
GST Council Meeting : Change in GST Rates
1. To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1st January, 2020.
2. To levy a single rate of GST @ 28% on both State run and State authorized lottery. This change shall become effective from 1st March, 2020.
3. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods ( HS code 3923/6305) in view of the requests received post the changes recommended on such goods in last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January, 2020.
This has been summarized by below mentioned chart:
| Sl. No. | Particulars | Existing position | Announcement on the 38th Council Meeting | Effective date |
| 1 | CH – 9972 Upfront amount payable for long term lease of industrial/ financial infrastructure plots | Exemption available to an entity having 50 per cent or more ownership of Central or State Government | Scope enhanced to allow exemption for entities having 20 per cent or more ownership of Central or State Government | 1 January 2020 |
| 2 | Lottery run by state Government | GST rate 12 per cent | 28 per cent | 1 March 2020 |
| 3 | Lottery Authorised by State Government | GST rate 28 per cent | Continue to remain at 28 per cent | NA |
| 4 | CH 3923 or 6305 – Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods. | GST rate 12 per cent | 18 per cent | 1 January 2020 |
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