Notification No. 22/2018 – Integrated Tax (Rate) Explained

Important Keyword: Notification 22/2018 IGST, handicraft GST rate, IGST on handicrafts, GST on handmade goods, silver filigree GST rate, handmade jewellery GST, bamboo furniture GST rate, GST on handicraft exports, concessional IGST handicraft notification,

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[354/255/2018 –TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

New Delhi, the 26^th July, 2018

Notification No. 22/2018 - Integrated Tax (Rate): Seeks to prescribe concessional IGST rate on specified handicraft items, to give effect to the recommendations of the GST Council in it's 28th meeting held on 21.07.2018

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the IGST Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,

hereby exempts the inter-state supplies of handicraft goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as specified in the corresponding entry in column (2), from so much integrated tax leviable thereon under section 5 of the IGST, 2017 (13 of 2017) as is in excess of the rate specified in column (4) of the said Table,

Explanation - For the purpose of this notification, the expression “handicraft goods” means “Goods predominantly made by hand even though some tools or machinery may also have been used in the process; such goods are graced with visual appeal in the nature of ornamentation or in-lay work or some similar work of a substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility”

Table

S.No.	Chapter, Heading, Subheading or Tariff item	Description of Goods	Rate
(1)	(2)	(3)	(4)
1.	3406	Handcrafted candles	12 %
2.	4202 22, 4202 29, 4202 3110, 4202 3190, 4202 32, 4202 39	Handbags including pouches and purses; jewellery box	12%
3.	4416, 4421 99 90	Carved wood products, art ware/decorative articles     of       wood (including inlay work, casks, barrel, vats)	12 %
4.	4414 00 00	Wooden frames for painting, photographs, mirrors etc	12 %

5.	4420	Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and lacquer work [including  lathe  and  lacquer  work, ambadi sisal craft]	12 %
6.	4503 90 90 4504 90	Art ware of cork [including articles of sholapith]	12 %
7.	4601 and 4602	Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola items, Kouna/chumthang (water reeds) crafts, articles of Water hyacinth, korai mat]	5 %
8.	4823	Articles made of paper mache	5 %
9.	5607, 5609	Coir articles	5 %
10.	5609 00 20, 5609 00 90	Toran, Doorway Decoration made from cotton yarn or woollen yarn and aabhala (mirror) with or without hanging flaps.	5%
11.	57	Handmade carpets and other handmade textile floor coverings (including namda/gabba)	5 %
12.	5804 30 00	Handmade lace	5 %
13.	5805	Hand-woven tapestries	5 %
14.	5808 10	Hand-made    braids    and ornamental trimming in the piece	5 %
15.	5810	Hand embroidered articles	5 %
16.	6117, 6214	Handmade/hand embroidered shawls of sale value not exceeding Rs. 1000 per piece	5 %
17.	6117, 6214	Handmade/hand embroidered shawls of sale value exceeding Rs. 1000 per piece	12 %
18.	6802	Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand)	12%
19.	6815 99 90	Stone art ware, stone inlay work	12 %
20.	6912 00 10 6912 00 20	Tableware and kitchenware of clay and terracotta, other clay articles	12%
21.	6913 90 00	Statuettes & other ornamental ceramic articles (incl blue potteries)	12 %
22.	7009 92 00	Ornamental framed mirrors	12 %
23.	7018 10	Bangles, beads and small ware	5 %
24.	7018 90 10	Glass  statues  [other  than  those  of crystal]	12 %
25.	7020 00 90	Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]	12 %

26.	7113 11 10	Silver filigree work	3 %
27.	7117	Handmade imitation ewellery (including natural seeds, beads jewelry, cardamom garland)	3 %
28.	7326 90 99	Art ware of iron	12 %
29.	7419 99	Art ware of brass, copper/ copper alloys, electro plated with nickel/silver	12%
30.	7616 99 90	Aluminium art ware	12 %
31.	8306	Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware,  Panchloga  artware,  idol, Swamimalai bronze icons, dhokra jaali)	12 %
32.	9405 10	Handcrafted lamps (including panchloga lamp)	12 %
33.	9401 50, 9403 80	Furniture of bamboo, rattan and cane	12 %
34.	9503	Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll)	12 %
35.	9504	Ganjifa card	12%
36.	9601	Worked articles of ivory, bone, tortoise shell, horn, antlers, coral,                                               mother of pearl, seashell other animal carving material	12 %
37.	9602	Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)	12 %
38.	9701	Hand paintings drawings and pastels (incl Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting, basoli etc)	12 %
39.	9703	Original  sculptures  and  statuary,  in metal, stone or any other material	12 %

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

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📚 Frequently Asked Questions (FAQs): Notification No. 22/2018 – Integrated Tax (Rate)

🏁 Conclusion

Notification No. 22/2018 – Integrated Tax (Rate) plays a crucial role in protecting India’s traditional handicraft industry by prescribing concessional IGST rates.

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More Information: https://taxinformation.cbic.gov.in/

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