On a day when Finance Minister Nirmala Sitharaman slashed corporate tax in a bid to reverse the current economic slowdown, the 37th GST Council meeting in Goa on Friday (September 20) decided to rationalise the Goods and Services Tax (GST) on several goods and services.
Here are some of the announcements made after the meeting:
- Rate on slide fasteners reduced from 18% to 12%, marine fuel 18% to 5% and wet grinders, consisting of stone as a grinder, from 12% to 5%
- GST removed from dried tamarind, and cups and plates made from flowers, leaves and bark
- No GST on hotel rooms with rent below ₹1,000, 12% on those ₹1,000-7,500, 18% for ₹7,501 onwards
- Rates on caffeinated beverages such as colas and coffee increased from 18% to 28%, with an additional 12% compensation cess
- Rate cut on precious and semi-precious stones
- GST on railway coaches and wagon raised from 5% to 12%
- Compensation cess on petrol-run vehicles reduced to 1%, diesel-run vehicles cut to 3%
- Fishmeal used by fishermen exempted from GST with retrospective effect
- Specified defence goods manufactured outside India exempted
- GST exemption on import of specified defence goods not manufactured indigenously extended up to 2024
- Supply of goods and services to FIFA and other specified persons also exempted in view of U17 Women’s World Cup to be held in India.