GST Relief: Over 200 Items, Eating Out At Restaurants To Be Cheaper From Today

The GST Council in its 23rd meeting last week approved the biggest ever change to the tax rates since the new tax rate came into effect from July 1.

GST Relief: Over 200 Items, Eating Out At Restaurants To Be Cheaper From Today

GST rate changes will make over 200 items cheaper

Over 200 items, most of them used for daily use, are set to get cheaper and restaurant bills to come down from today. The GST Council in its 23rd meeting last week approved the biggest ever change to the tax rates since the new indirect tax regime came into effect from July 1. Under the changes, effective from November 15, 178 everyday items will get taxed at the lower rate of 18 per cent, from the 28 per cent. After the latest change, just 50 items will remain in the highest tax bracket of 28 per cent, mainly white goods such as washing machines and refrigerators, and "sin" items such as tobacco.

Also under the tax changes, other items like condensed milk, refined sugar/sugar cubes and pasta, which were taxed at 18 per cent, will come under the lower slab of 12 per cent. Tax rates on some other items will fall from 18 per cent to 5 per cent and from 5 per cent to nil.

Many companies have said that they will pass on the GST rate cut benefits to consumers but there will be a transition time before new price stocks are available in the market.

“HUL remains committed to passing on the benefits of GST reduction to the consumers. We are reviewing all our networks so that we can commence production of products with lower prices as soon as possible. Price changes will be communicated in due course,” said a spokesperson of the consumer goods company HUL.

In another significant change, the GST Council lowered the tax rate of restaurants to a uniform 5 per cent from 12 per cent on non-AC restaurants and 18 per cent on air-conditioned ones, a move that will bring down the cost of eating out. But restaurants will not be entitled to the benefit of input tax credit (ITC). Restaurants in hotels that charge a room tariff of Rs 7,500 or more per day will be levied the GST rate of 18 per cent but input tax credit is allowed for them.

a) Goods on which the GST Council has recommended reduction in the rate from 28 per cent to 18 per cent include:

1) Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors

2) Electrical boards, panels, consoles, cabinets etc for electric control or distribution

3) Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block

4) Furniture, mattress, bedding and similar furnishing

5) Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases

6) Detergents, washing and cleaning preparations

7) Liquid or cream for washing the skin

8) Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient

9) Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers

10) Perfumes and toilet waters

11) Beauty or make-up preparations

12) Fans, pumps, compressors

13) Lamp and light fitting

14) Primary cell and primary batteries

15) Sanitary ware and parts thereof of all kind

16) Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic

17) Slabs of marbles and granite

18) Goods of marble and granite such as tiles

19) Ceramic tiles of all kinds

20) Miscellaneous articles such as vacuum flasks, lighters

21) Wrist watches, clocks, watch movement, watch cases, straps, parts

22) Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal

23) Cutlery, stoves, cookers and similar non electric domestic appliances

24) Razor and razor blades

25) Multi-functional printers, cartridges

26) Office or desk equipment

27) Door, windows and frames of aluminium.

28) Articles of plaster such as board, sheet

29) Articles of cement or concrete or stone and artificial stone

30) Articles of asphalt or slate

31) Articles of mica

32) Ceramic flooring blocks, pipes, conduit, pipe fitting

33) Wall paper and wall covering

34) Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware

35) Electrical, electronic weighing machinery

36) Fire extinguishers and fire extinguishing charge

37) Fork lifts, lifting and handling equipment

38) Bull dozers, excavators, loaders, road rollers

39) Earth moving and levelling machinery

40) Escalators

41) Cooling towers, pressure vessels, reactors

42) Crankshaft for sewing machine, tailor's dummies, bearing housings, gears and gearing; ball or roller screws; gaskets

43) Electrical apparatus for radio and television broadcasting

44) Sound recording or reproducing apparatus

45) Signalling, safety or traffic control equipment for transports

46) Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment

47) All musical instruments and their parts

48) Artificial flowers, foliage and artificial fruits

49) Explosive, anti-knocking preparation, fireworks


50) Cocoa butter, fat, oil powder,

51) Extract, essence ad concentrates of coffee, miscellaneous food preparations

52) Chocolates, Chewing gum / bubble gum

53) Malt extract and food preparations of flour, groats, meal, starch or malt extract

54) Waffles and wafers coated with chocolate or containing chocolate

55) Rubber tubes and miscellaneous articles of rubber

56) Goggles, binoculars, telescope

57) Cinematographic cameras and projectors, image projector

58) Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology

59) Solvent, thinners, hydraulic fluids, anti-freezing preparation

b) Goods on which the Council has recommended reduction in GST rate from 28% to 12%:

1) Wet grinders consisting of stone as grinder

2) Tanks and other armoured fighting vehicles

(II) Other changes/rationalisation of GST rates on goods:

a) 18% to 12%

1) Condensed milk

2) Refined sugar and sugar cubes

3) Pasta

4) Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning

5) Diabetic food

6) Medicinal grade oxygen

7) Printing ink

8) Hand bags and shopping bags of jute and cotton

9) Hats (knitted or crocheted)

10) Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery

11) Specified parts of sewing machine

12) Spectacles frames

13) Furniture wholly made of bamboo or cane

b) 18% to 5%

1) Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya

2) Flour of potatoes put up in unit container bearing a brand name

3) Chutney powder

4) Fly ash

5) Sulphur recovered in refining of crude

6) Fly ash aggregate with 90% or more fly ash content

c) 12% to 5%

1) Desiccated coconut

2) Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]

3) Idli, dosa batter

4) Finished leather, chamois and composition leather

5) Coir cordage and ropes, jute twine, coir products

6) Fishing net and fishing hooks

7) Worn clothing

8) Fly ash brick

d) 5% to nil

1) Guar meal

2) Hop cone (other than grounded, powdered or in pellet form)

3) Certain dried vegetables such as sweet potatoes, maniac

4) Unworked coconut shell

5) Fish frozen or dried (not put up in unit container bearing a brand name)

6) Khandsari sugar

Other GST rate changes

1) GST rates on aircraft engines from 28%/18% to 5%, aircraft tyres from 28% to 5% and aircraft seats from 28% to 5%.

2) GST rate on bangles of lac/shellac from 3% GST rate to Nil.