GST rate cut: From diamonds to used cars, here's full list of revised items

The changes will be effective from January 25; 15 states to start intra-state e-way bill from February 1

Two weeks ahead of Budget 2018, the GST Council on Thursday cut rates on 83 employment-oriented goods and services, in a bid to encourage greater compliance as revenues have dipped since the landmark reform was announced in July. The panel, headed by Finance Minister Arun Jaitley and comprising representatives of all states, at its 25th meeting decided to reduce tax rate on 29 items and 54 categories of services with effect from January 25. Businesses have raised concerns about high rates of taxation and cumbersome processes in GST, billed as India's biggest tax reform in 70 years.

The goods on which GST will be lowered include biofuel-run buses, used motor vehicles and diamonds and precious stones.

Here's the complete list:

List of goods on which GST rate recommended for reduction from 28% to 18%Old and used motor vehicles on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.

Buses, for use in public transport, which exclusively run on bio-fuels.

List of goods on which GST rate recommended for reduction from 18% to 12%

Sugar boiled confectionary Drinking water packed in 20 litters bottles Fertilizer grade Phosphoric acid Bio-diesel Bio-pesticides Bamboo wood building joinery Drip irrigation system including laterals, sprinklers Mechanical Sprayer

List of goods on which GST rate recommended for reduction from 18% to 5%

Tamarind Kernel Powder Mehendi paste in cones LPG supplied for supply to household domestic consumersList of goods on which GST rate recommended for reduction from 12% to 5%Articles of straw, of esparto or of other plaiting materials; basketware and wickerworkList of goods on which GST rate recommended for reduction from 3% to 0.25%Diamonds and precious stones

List of goods on which GST will not be charged

Vibhuti Parts and accessories for manufacture of hearing aids De-oiled rice bran

GST rate cut on services

In the services segment, government will cut taxes on transportation of crude, gasoil, gasoline, jet fuel and services relating to mining, exploration and drilling of oil and natural gas, among other things.

Admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet will now be taxed at 18% instead of 28% and on common effluent treatment plans services from 18% to 12%.

Buying a car, gold or property? How GST will impact your expenses from 1 July

Govt has surely kept the consumer's interest in mind while deciding the tax rates under GST

Company News :The introduction of GST from 1 July 2017 would not only have an impact on businesses in India but also on the common man’s monthly budget. The prices of goods and services forming part of the monthly budget would either increase or decrease depending on the GST treatment.

Eating out

For example, when an individual eats out in a restaurant, today there is service tax and VAT charged in the invoice, apart from having a service charge collected additionally. The service tax and VAT is not applicable for all types of restaurants and therefore varies from restaurant to restaurant. Under GST, the rate of tax on the restaurant invoice could be either 5%, 12% or 18%, depending on whether the restaurant is under composition scheme, non-air conditioned or air-conditioned, respectively. The replacement of service tax and VAT with GST at the above rates would make it simple for the customer to understand how much is actually going to the government in terms of taxes.

Buying gold

When it comes to buying gold, we Indians cannot stay away from this temptation. The taxes on gold currently is around 2% in most states, comprising of 1% of excise duty and 1% of VAT in most States.

Kerala has a higher VAT of 5%. The GST rate is increased from the existing rate of around 2% to 3%. While most consumers would have to shell out additional tax of 1%, consumers in Kerala would benefit from the rate reduction.

Buying property

For under-construction property, there is a significant impact post GST. The existing tax rates are broadly around 6% in most States comprising of service tax and VAT (other than a few where the VAT rate is higher). Under GST the rate shall increase to 12%, with the ability of the builder to avail all input tax credits, resulting in reducing his cost which may be passed on to buyers by commensurate reduction in prices. However, this may not be possible for the builder immediately, especially where the builder has already procured the construction material. Hence, for properties currently under construction, the transition into GST would have consumers being charged with the additional tax without actual reduction in construction value.