GST Amendments Unveiled: Key Changes in Tax Rates

Schedule I (5%): Introduction of S. No. 71A: Tamarind seeds for non-sowing purposes now attract a 5% GST rate. Omission of S. Nos. 138 to 148 and 187A, streamlining the Schedule for enhanced clarity. Inclusion of S. No. 186A: Bio-diesel supplied to Oil Marketing Companies for blending, now taxed at 5%.

Schedule II (12%): Revision in S. No. 80A: Bio-diesel (excluding blending with High-Speed Diesel) attracts a 12% GST rate. Omission of S. Nos. 127 to 132 and 205A to 205H for a more concise schedule. Addition of S. No. 201A: Renewable energy devices and parts, such as bio-gas plants and solar generators, taxed at 12%.

Schedule III (18%): Enlargement of the list to include essential minerals like iron ores, copper, and aluminum, now taxed at 18%. Replacement of S. No. 153A: Paper-based items like cartons and packing containers taxed at 18%. Inclusion of S. No. 101A: Waste, Parings, and Scrap of Plastics taxed at 18%.

Schedule IV (28%): Introduction of S. No. 12B: Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice now taxed at 28%. Addition of S. No. 398A to 398H: Various railway and tramway items now fall under the 28% GST bracket.

Effective Date: These amendments, effective from the 1st day of October 2021, usher in a new tax regime impacting diverse sectors.

Council Recommendations: The changes follow recommendations from the GST Council, aiming to streamline and align tax rates with evolving economic needs.

Government Authority: The amendments, made under the powers conferred by the IGST Act, 2017 and CGST Act, 2017, underline the government's commitment to efficient tax administration.