GST Council Meeting : Change in GST Rates

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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