On January 18, 2018, the GST Council approved a change in tax rates of 29 goods and 53 categories of services which will be effective from January 25, said finance minister Arun Jaitley. He added that in the next meeting, the council will discuss on petroleum and other exempt items.
Jaitley said that there will be no GST tax on 29 handicraft items to protect jobs in the hand-made industry. He added that every year, India exports about ₹4,000 crore of handicrafts which also includes handmade carpets. Currently, handicraft items attract 12-18 per cent GST.
In their previous meeting, in the month of November, the Council had reduced the tax rate on over 200 items.
| Items | Previous GST rate (% wise) | Revised GST rate |
|---|---|---|
| LPG | 18 per cent | 5 per cent |
| Bio-fuel powered buses | 28 per cent | 18 per cent |
| Diamonds and precious stones | 3 per cent | 0.25 per cent |
| Sugar boiled confectionary and drinking water | 18 per cent | 12 per cent |
| Drip irrigation system equipments | 18 per cent | 12 per cent |
| Cigarette filter rods | 12 per cent | 18 per cent |