New year 2022 has started and the central government has also released its GST Rates List 2022 PDF, you can download this list from below. GST (Goods and Services Tax) is done indirectly for the supply of goods and services in India. Goods and Service Tax was implemented in India from 1st July 2017.
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Goods and Services Tax
With the implementation of Goods and Services Tax, a single indirect tax system has been implemented in the whole country by removing various taxes levied by the Central Government and the State Governments. The Constitution of India was amended by the Government of India to implement this tax system.
Goods and Service Tax which is administered by the Service Tax Council. The chairman of this tax is the Finance Minister of India. The following charges are levied on Goods and Services for implementation of GST – 0%, 5%, 12% and 18%. A tax of 0.25% is levied on coarse precious and semi-precious stones and up to 3% on gold.
GST Rate revision in 47th GST Council Meeting
The 47th GST council meeting was held on 28th and 29th June 2022. The following decisions were taken regarding GST rates, including pruning of the exemption list and correction of the inverted tax structure.
The changes relating to GST rate, in pursuance of recommendations made by the GST_Council in its 47th meeting, came into effect from today, 18th of July, 2022.
GST rate hikes and cuts
| Description of goods or services | Old Rate | New Rate |
| What’s costlier | ||
| Cut and Polished diamonds | 0.25% | 1.50% |
| Tetra Pack (Aseptic Packaging Paper) | 12% | 18% |
| Tar (From coal, or coal gasification plants, or producer gas plants and coke oven plants) | 5%/18% | 18% |
| What’s cheaper | ||
| Import of tablets called Diethylcarbamazine (DEC) free of cost for National Filariasis Elimination Programme (IGST) | 5% | Nil |
| Import of particular defence items by private businesses or suppliers for end-consumption of Defence (IGST) | Applicable rates | Nil |
| Ostomy Appliances | 12% | 5% |
| Orthopedic appliances such as intraocular lens, artificial parts of the body, splints and other fracture appliances, other appliances which are worn or carried, or body implants, to compensate for a defect or disability | 12% | 5% |
| Transport of goods and passengers by ropeways (with ITC of services) | 18% | 5% |
| Renting of truck or goods carriage including the fuel cost | 18% | 12% |
| *The rates will come into effect from 18th July 2022 subject to CBIC notification |
Pruning of GST exemptions
| Description of goods or services | Old Rate | New Rate |
| Earlier fully exempted, now withdrawn | ||
| Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed | Nil | 12% |
| Cheques, lose or in book form | Nil | 18% |
| Parts of goods of heading 8801 | Nil | 18% |
| Air transportation of passengers to and from north-eastern states and Bagdogra now restricted to economy class | Nil | Condition added |
| Transportation by rail or a vessel of railway equipment and material, storage or warehousing of commodities attracting tax such as copra, nuts, spices, jaggery, cotton, etc, fumigation in a warehouse of agri produce, services by RBI, IRDA, SEBI, FSSAI, and GSTN, renting of residential dwelling to GST-registered businesses, and services by the cord blood banks for preserving stem cells | Nil | Applicable rate |
| Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITC | Nil | 5% |
| Common bio-medical waste treatment facilities for treating or disposing biomedical waste shall be taxed with availability of ITC, like CETPs | Nil | 12% |
| Hotel accommodation priced up to Rs.1,000 per day | Nil | 12% |
| Training or coaching in recreational activities on arts or culture, or sports other than by individuals | Nil | Applicable rate |
| Earlier partially exempted, now withdrawn | ||
| Petroleum/ Coal bed methane | 5% | 12% |
| e-Waste | 5% | 18% |
| Scientific and technical instruments to public funded research institutes | 5% | Applicable rate |
| *The rates will come into effect from 18th July 2022 subject to CBIC notification |
Correction of Inverted tax structure
| Description of goods or services | Old Rate | New Rate |
| Solar water heaters and systems | 5% | 12% |
| Prepared or finished leather or chamois leather or composition leathers | 5% | 12% |
| Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing | 5% | 12% |
| Earthwork works contracts and sub-contracts to the Central and state governments, Union Territories and local authorities | 5% | 12% |
| Pawan Chakki being air-based atta chakki, wet grinder, cleaning, sorting or grading machines for seeds and grain pulses, and milling machines or cereal making machines, etc; | 5% | 18% |
| Ink for drawing, printing, and writing | 12% | 18% |
| Knives with paper knives, cutting blades, pencil sharpeners and its blades, skimmers, cake-servers, spoons, forks, ladles, etc | 12% | 18% |
| Centrifugal pumps, submersible pumps deep tube-well turbine pumps, bicycle pumps that are power-driven mainly for handling water | 12% | 18% |
| Milking machines and dairy machinery, cleaning, sorting or grading machines and its parts for eggs, fruit or other agri produce | 12% | 18% |
| Lights and fixture, LED lamps, their metal printed circuits board | 12% | 18% |
| Marking out and drawing instruments | 12% | 18% |
| Services by foreman to chit fund | 12% | 18% |
| Works contract for railways, metro, roads, bridges, effluent treatment plant, crematorium, etc. | 12% | 18% |
| Works contract and sub-contract to the Central and state governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals, etc | 12% | 18% |
| Refund of accumulated ITC for edible oils and coal is disallowed. | ||
| *The rates will come into effect from 18th July 2022 subject to CBIC notification |
Rate revision in 45th GST Council Meeting
GST Rates reduced on Goods & Services:
| Item | Before | After |
|---|---|---|
| Import of expensive life-saving medicines such as Zolgensma, Viltepso or as recommended by a relevant government department for personal use | 12% | Nil |
| Waste unintentionally generated during the fish meal production, except for Fish Oil | Applicable rate | Nil from 1st July 2017 to 30th September 2019 |
| IGST on the goods sold at Indo-Bangladesh border haats | Applicable rate | Nil |
| Transport of goods by vessel and air from India to outside India extended up to 30th September 2022 | Nil | Nil |
| Granting of National Permit to goods carriages on a fee payment | 18% | Nil |
| Skill training programmes where the state/central government funds expenditure equal to or more than 75% | 18% | Nil |
| Services on AFC Women’s Asia Cup to be held in 2022 | 18% | Nil |
| ‘Keytruda’ drug for the treatment of cancer | 12% | 5% |
| Biodiesel, sold to the oil marketing companies for blending it with diesel | 12% | 5% |
| Fortified Rice Kernels for the Integrated Child Development Services Scheme, etc | 18% | 5% |
| Retro fitment kits in vehicles for the disabled | Applicable rate | 5% |
G.S.T Rates increased on Goods & Services:
| Item | Before | After |
|---|---|---|
| Polyurethanes and other plastics waste and scrap | 5% | 18% |
| Cartons, bags, boxes, packing containers made out of paper, etc | 12/18% | 18% |
| Papers such as cards, catalogue, printed material Under Chapter 49 | 12% | 18% |
| Licensing, broadcasting and showing original films, Radio Television programmes, sound recordings | 12% | 18% |
| Printing and reproduction of recorded media being the publisher’s content | 12% | 18% |
GST rate corrections for inverted tax structure:
| Item | Before | After |
|---|---|---|
| Specified Renewable Energy Devices and parts | 5% | 12% |
| Ores and metal concentrates | 5% | 18% |
| All kinds of pens | 12/18% | 18% |
| Railway parts, locomotives and goods in Chapter 86 | 12% | 18% |
Rate revision in 44th GST Council Meeting
Medicines required for COVID-19 & Black Fungus treatment:
| Items | Old rate | Proposed rate |
|---|---|---|
| Tocilizumab | 5% | Nil |
| Amphotericin-B | 5% | Nil |
| Remedesivir | 12% | 5% |
| Anti-coagulants like Heparin | 12% | 5% |
| Any other drug (recommended by the Ministry of Health and Family Welfare (MoHFW) and the Dept. of Pharma (DoP) for Covid-19 treatment) | Existing rate | 5% |
Medical equipment required for COVID treatment:
| Items | Old rate | Proposed rate |
|---|---|---|
| Medical Grade Oxygen | 12% | 5% |
| Oxygen concentrators/ generators (which include personal imports) | 12% | 5% |
| Ventilators and ventilator masks/ cannula/ helmets | 12% | 5% |
| BiPaP machine | 12% | 5% |
| High flow nasal cannula device | 12% | 5% |
| Pulse oximeters | 12% | 5% |
COVID-19 testing kits and items utilised for the prevention of COVID-19:
| Items | Old rate | Proposed rate |
|---|---|---|
| Covid-19 testing kits | 12% | 5% |
| Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| Hand sanitiser | 18% | 5% |
| Temperature checking equipment | 18% | 5% |
Others:
| Items | Old rate | Proposed rate |
|---|---|---|
| Gas/electric/other furnaces for crematorium, including their installation, etc | 18% | 5% |
| Ambulances | 28% | 12% |
Rate revision in 39th GST council meeting
| Item | Old Rate | New Rate |
| Mobile phones and specified parts | 12% | 18% |
| Handmade matches | 5% | 12% |
| Other than handmade matches | 18% | 12% |
| Aircraft MRO (Maintenance, Repair, Overhaul) services | 18% | 5% (with full ITC) |
Rate revision in 38th GST council meeting
| Item | Old Rate | New Rate |
| Lotteries (State-owned) | 12% | 28% |
| Lotteries (State-authorised) | 28% | 28% |
| Woven and non-woven fabrics | 12% | 18% |
| Sacks of Polythene and Polypropylene in nature | 12% | 18% |
Rate revision in 37th GST council meeting
| Item | Old Rate | New Rate |
| Plates and cups made of flowers, leaves and bark | 5% | Nil |
| Caffeinated Beverages | 18% | 28%+12% cess |
| Supplies of Railways wagons & coaches (without refund of accumulated ITC) | 5% | 12% |
| Outdoor Catering (without ITC) | 18% | 5% |
| Diamond Job work | 5% | 1.50% |
| Other Job work | 18% | 12% |
| Hotels (Room Tariff of Rs.7501 or above) | 28% | 18% |
| Hotels (Room Tariff from Rs 1,001 to Rs 7,500) | 18% | 12% |
| Woven/ Non-woven Polyethylene Packaging bags | 18% | 12% |
| Marine fuel | 18% | 5% |
| Almond Milk | 18% | |
| Slide fasteners | 18% | 12% |
| Wet grinders (consisting of stone as a grinder) | 12% | 5% |
| Dried Tamarind | 5% | Nil |
| Semi-precious stones- cut & polished | 3% | 0.25% |
| Specified goods for petroleum operation under HELP* | Applicable Rate | 5% |