New Delhi: Tax exemptions currently available on a host of imports such as goods brought in by diplomatic missions, commercial samples of jewellery, art work for display in museums and trophies won by Indian teams in international events will continue under the goods and services tax (GST) regime as well.
The GST Council which met in New Delhi on Saturday also exempted integrated GST (IGST) on imports by special economic zones (SEZs) and by SEZ developers, according to information provided by the Central Board of Excise and Customs (CBEC) on its website.
SEZ units and developers currently enjoy duty-free imports. IGST is the tax applicable on imports as well as on inter-state supply of goods and services.
State-owned explorers Oil and Natural Gas Corp. and Oil India Ltd will be eligible for a concessional 5% IGST on goods and services procured for specified oilfield operations.
The Council also lowered the GST applicable on domestic supply of a few items while vetting the tax schedule on goods it had adopted at its last meeting in Srinagar in May, said a note published by CBEC.
As per this, mix of vegetable oils will attract only 5% against the 18% specified earlier and glass beads used in embroidery will be taxed at 5% instead of 18% specified earlier.
Solar cells and panels will be taxed at 5% instead of the 18% mentioned in the schedule that was released last month. The Council also clarified that sports goods will be taxed at 12% and not at 28%.
Khadi yarn, Gandhi topi, the country’s national flag and a few items such as rudraksh and sacred thread used in religious rituals are exempt from GST.
The Council completed the exercise of placing goods and services into various slabs at its meeting on Saturday.
Source: livemint.com