As states and the centre gear up for the 47th GST Council meeting in Chandigarh next week, here is a list of items and services, which — sources tell CNBC-TV18 — are up for rate revision, clarification, and even some that the Nominated Fitment Committee decided did not merit any change.
Here are the recommendations made by the committee:
RATE CHANGE ON GOODS
NO RATE CHANGE
Also read: GST Group of Ministers likely to submit an interim report on rate rationalisation at next meet
The Nominated Fitment Committee has rejected a proposal to add the names of Industrial and Commercial Bank of China and RBL Bank as a banking institution for exemption of IGST.
The committee has further sought time to revisit and revise GST rates on printed books, which it says can be done at a time when the general review of GST rates is carried out.
Further, pharmaceuticals will be taxed at 12 percent as fitment committee is of the view that inputs to pharma sector are chemicals, mostly at 18 percent GST. General reduction of GST on the pharmaceutical sector to 5 percent will accentuate inverted duty structure and distortion in GST rate chain.
RATE CHANGE ON SERVICES
The committee has clarified that in vitro fertilisation (IVF) services are exempt under GST as they come under care services.
The committee has further rejected proposals to change rates imposed on 102 services, a proposal by restaurants to restore GST of 12 percent with input tax credit, and a proposal to reduce GST on dry cleaning and laundry services.