IGST RATE 28% ON GOODS AS ON 27.07.2018

[Mr. M. GOVINDARAJAN]

Vide Notification No. 1/2017-Integrated Tax (Rate), dated 28th June, 2017 the Central Government notified in Schedule IV the list of goods that are covered under 28% tax regime.  229 goods have come under this tax regime.  Since there is opposition from the stakeholders of this high rate of tax and considering the trade and industry the GST Council has reduced the tax rate from 28% to various rates in various notifications issued from time to time by the Government of India.  The GST Council in the 28th meeting held on 21.07.2018 has also reduced the 28% tax rate to lesser tax rates. 

   Vide Notification No. 19/2018-Integrated Tax (Rate), dated 26.07.2018 the Central Government reduced tax rate from 28% to lower rates.  The said notification comes into effect from 27.07.2018.

   After incorporating the changes brought in the Notification No. 19/2018-Integrated Tax (Rate) the following goods are covered under 28% GST regime as on 27.07.2018

Sl.No.	Chapter Heading/Sub Heading/Tariff item	Description of goods
1	1703	Molasses
10	2106 90 20	Pan masala
12	2202 10	All goods [including aerated waters], containing added sugar or other sweetening matter or flavored
13	2401	Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]
14	2402	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
18	2523	Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not colored or in the form of clinkers
46	4011	New pneumatic tyres, of rubber (other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; rear tractor tyres; and of a kind used on aircraft
47	4012	Retreaded or used tyres and flaps
114	8407	Spark-ignition reciprocating or rotary internal combustion piston engine [other than aircraft engines
115	8408	Compression-ignition internal combustion piston engines (diesel or semi-diesel engines)
116	8409	Parts suitable for use solely or principally with the engines of heading 8407 or 8408
117	8413	concrete pumps [8413 40 00], other rotary positive displacement pumps [8413 60], [other than hand pumps falling under tariff item 8413 11 10]
119	8415	Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated
122	8422	Dish washing machines, household [8422 11 00] and other [8422 19 00]
135	8483	Transmission shafts (including cam shafts and crank shafts) and cranks (excluding crankshaft for sewing machine); gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joint
139	8507	Electric accumulators, including separators therefor, whether or not rectangular (including square) other than Lithium-ion battery
143	8511	Electrical ignition or starting equipment of a kind used for spark ignition or compression-ignition internal combustion engines (for example, ignition magnetos, magneto-dynamos, ignition coils, sparking plugs and glow plugs, starter motors); generators (for example, dynamos, alternators) and cut-outs of a kind used in conjunction with such engines
151	8525	Digital cameras and video camera recorders [other than CCTV]
154	8528	Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus other than computer monitors not exceeding 20 inches, set top box for television and Television set (including LCD and LED television) of screen size not exceeding 68 cm
163A	8701	Road tractors for semi-trailers of engine capacity more than 1800 cc
164	8702	Motor vehicles for the transport of ten or more persons, including the driver [other than buses for use in public transport, which exclusively run on Bio-fuels
165	8703	Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars [other than Cars for physically handicapped persons
166	8704	Motor vehicles for the transport of goods [other than Refrigerated motor vehicles]
168	8706	Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705
169	8707	Bodies (including cabs), for the motor vehicles of headings 8701 to 8705
170	8708	Parts and accessories of the motor vehicles of headings 8701 to 8705 [other than specified parts of tractors]
173	8711	Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars
174	8714	Parts and accessories of vehicles of headings 8711 and 871
176	8802	Aircrafts for personal use
177	8903	Yachts and other vessels for pleasure or sports; rowing boats and canoes
210	9302	Revolvers and pistols, other than those of heading 9303 or 9304
215	9504	Video games consoles and Machines, article and accessories for billiards [9504 20 00], other games operated by coins, banknotes, i.e., casino games [9504 20 00] and others [other than board games of 9504 90 90]
223	9614	Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof
227	9804	All dutiable articles intended for personal use
228	Any Chapter	Lottery authorized by State Governments
229	Any Chapter	Actionable claim in the form of chance to win in betting, gambling, or horse racing in race club

The industries welcomed the decision of the Central Government in reduction of 28% rate for some goods and reduced the list to the barest minimum. 

   Similar to IGST, the Central Government reduced the rates of CGST and UTGST from 14% to the reduced rates vide Notification No. 18/2018-Central Tax (Rate), dated 26.07.2018 and vide Notification No. 18/2018-Union Territory Tax (Rate), dated 26.07.2018 respectively which also come into effect from 27.07.2018.