The Economic Survey 2023 notes changes in Goods and Service Tax (GST) Rates in Financial Year 2023 made by Central Board of Indirect Taxes and Customs (CBIC).
GST came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments.
The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of the central government and all the states.
In 2022, the following changes were made to GST rates on goods and services:
In the 47th GST Council meeting, it was decided to increase the GST rates on items such as printing, writing or drawing ink, Power driven pumps primarily designed for handling water such as centrifugal pumps, Pawan Chakki, Drawing and marking out instruments, Solar Water Heater and system etc to correct inverted duty structure in these items.
Similarly, GST rates on certain services such as Services supplied by foreman to chit fund, Job work in relation to processing of hides, skins and leather, Job work in relation to manufacture of leather goods and footwear etc were also calibrated to correct inverted duty structure.
Hitherto, GST was exempted on specified food items, grains etc when not branded, or right on the brand has been foregone. In the 47th GST Council Meeting, it has been decided to revise the scope of exemption to exclude from it pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk.
With an objective to rationalise GST exemptions, the 47th GST Council Meeting recommended to withdraw GST exemption on items such as Cheques, lose or in book form, Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed.
On similar lines, exemption in form of a concessional rate of GST is being rationalised on items such as Petroleum/ Coal bed methane, Scientific and technical instruments supplied to public funded research institutes, E-waste.
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