CBIC Notifies GST Rate Changes From 45th GST Council Meeting

The 45th GST Council meeting held on 17th September 2021, chaired by Finance Minister Nirmala Sitharaman, decided upon certain GST rate changes. The Council further rationalised the GST rates on a few other goods in order to remove hardships under the inverted duty structure. Let’s dive into the rate changes that were notified on Thursday by the Central Board of Excise and Customs (CBIC).

Notification No. 12/202-Central Tax (Rate) announced the reduction in the GST rates on medicines used to treat COVID-19. The initial rate reduction given by the government was until 31st August 2021. Now, with the new notification released, the reduced rates will be in force until 31st December 2021.

Description  CGST rate notified Total GST rate (inclusive of equal SGST levied)
Tocilizumab Nil Nil
Amphotericin B Nil Nil
Remdesivir 2.5% 5%
Heparin (anticoagulant)  2.5% 5%
Itolizumab 2.5% 5%
Posaconazole  2.5% 5%
Infliximab  2.5% 5%
Bamlanivimab & Etesevimab 2.5% 5%
Casirivimab & Imdevimab  2.5% 5%
2-Deoxy-D-Glucose  2.5% 5%
Favipiravir  2.5% 5%

The CBIC has further notified the GST rates on certain other goods and services over a series of notifications released on 30th September 2021. The tables below display the important GST rates notified.

GST rates on goods notified

Description CGST rate notified Total GST rate

(inclusive of equal SGST levied)

Tamarind seeds meant for use other than sowing 2.5% 5%
Bio-diesel supplied to oil marketing companies for blending with high-speed diesel 2.5% 5%
Bio-diesel (other than bio-diesel supplied to oil marketing companies for blending with high-speed diesel) 6% 12%
Pembrolizumab (Keytruda) 2.5% 5%
Retro fitment kits for vehicles that are used by the disabled 2.5% 5%
Following renewable energy devices and parts for their manufacture:- 

(a) Bio-gas plant

(b) Solar power-based devices 

(c) Solar power generator 

(d) Windmills and Wind Operated Electricity Generator (WOEG)

(e) Waste to energy plants and devices 

(f) Solar lanterns and solar lamps 

(g) Ocean waves and tidal waves energy devices and plants 

(h) Photovoltaic cells, whether assembled or not in modules or made into panels* 

6% 12%
Iron ores and concentrates that include roasted iron pyrites 9% 18%
Manganese ores and concentrates that include ferruginous manganese ores and concentrates that have a manganese content of 20% and above, calculated on the dry weight 9% 18%
Copper ores and concentrates 9% 18%
Nickel ores and concentrates 9% 18%
Cobalt ores and concentrates 9% 18%
Aluminium ores and concentrates 9% 18%
Lead ores and concentrates 9% 18%
Zinc ores and concentrates 9% 18%
Tin ores and concentrates 9% 18%
Chromium ores and concentrates 9% 18%
Waste, parings, and scrap of plastics 9% 18%
Cartons, boxes, bags, cases, and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like 9% 18%
Plans and drawings for architectural, industrial, engineering, commercial, topographical or similar purposes that are originals drawn by hand; or hand-written texts; or photographic reproductions on sensitised paper and carbon copies of the foregoing 9% 18%
Unused postage, revenue or similar stamps of a new or current issue in the country where they have, or will have, a recognised face value; banknotes; stamp-impressed paper; cheque forms; share, stock, or bond certificates and other similar documents of title (besides Duty Credit Scrips) 9% 18%
Transfers (decalcomanias) 9% 18%
Printed or illustrated postcards; printed cards that bear personal greetings, messages or announcements, whether illustrated or not, with or without envelopes or trimmings 9% 18%
Calendars of any kind, printed, that include calendar blocks 9% 18%
Other printed matter that includes printed pictures and photographs; like trade advertising material, commercial catalogues and the like, pictures, printed posters, printed inlay cards, designs and photographs, plan and drawings for architectural engineering, commercial, industrial, topographical or similar purposes reproduced with the aid of a computer or any other devices 9% 18%
Rail locomotives powered from external sources of electricity or by electric accumulators 9% 18%
Other rail locomotives; locomotive tenders; such as diesel-electric locomotives, steam locomotives and tenders thereof 9% 18%
Self-propelled tramway or railway coaches, vans and trucks, other than those of the heading 8604 9% 18%
Tramway or railway maintenance or service vehicles, whether self-propelled or not 9% 18%
Railway or tramway passenger coaches, not self-propelled; luggage vans, post office coaches and other special purpose tramway or railway coaches, not self-propelled (excluding those of the heading 8604) 9% 18%
Tramway or railway goods vans and wagons, not self-propelled 9% 18%
Parts of railway or tramway locomotives or rolling-stock; such as bogies, bissel-bogies, axles and wheels, and parts thereof 9% 18%
Tramway or railway track fixtures and fittings; mechanical (that include electro-mechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing 9% 18%
Ballpoint pens; felt-tipped and other porous-tipped pens and markers; stylograph pens and other pens; fountain pens; duplicating stylos; pencil holders, pen holders, and similar holders; parts (including caps and clips) of the foregoing articles, other than those under heading 9609 9% 18%
Carbonated beverages of fruit drinks or carbonated beverages with fruit juice 14% 28%

*If a supplier supplies the goods specified in this entry, along with supplies of other goods and services, one of which is a taxable service specified in the entry at S. No. 38 of the table mentioned in Notification No. 11/2017-Central Tax (Rate), dated 28th June 2017, then the value of supply of goods for the purposes of this entry shall be deemed as 70% of the gross consideration charged for all such supplies. The remaining 30% of the gross consideration charged shall be deemed as the value of the said taxable service.

GST rates on services notified

Service CGST rate notified Total GST Rate

(inclusive of equal SGST levied)

Services by way of granting of a National Permit to a goods carriage to operate throughout India/contiguous states Nil Nil
Services by way of right to admission to the events organised under AFC Women’s Asia Cup 2022 Nil Nil
Services provided by and to the Asian Football Confederation (AFC) and its subsidiaries directly or indirectly related to any of the events under the AFC Women’s Asia Cup 2022 to be hosted in India** Nil Nil
Temporary or permanent transfer or permitting the use or enjoyment of an Intellectual Property (IP) right 9% 18%
Services by way of job work in relation to the manufacture of alcoholic liquor for human consumption  9% 18%
Other manufacturing services; publishing, printing and reproduction services; materials recovery services 9% 18%
Services by way of admission to 

(a) Theme parks, water parks and any other place having joy rides, go-karting, merry-go-rounds, or 

(b) Ballet, 

other than any place covered by # below

9% 18%
# Services by way of admission to 

(a) Casinos, race clubs, or any place having casinos or race clubs or 

(b) Sporting events like the Indian Premier League

14% 28%

**Provided that the Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under the AFC Women’s Asia Cup 2022.

It is to be noted that the GST rates on locomotives were rationalised from 12% to 18% to correct the inverted duty structure. Likewise, the GST rate on pens and ores were corrected to be now taxed at 18%. These GST rates notified will come into effect from 1st October 2021.

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For any clarifications/feedback on the topic, please contact the writer at athena.rebello@cleartax.in

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