GST Rate Changes – Impact on Coal, Common Man Items, and
Miscellaneous Goods
The recent GST Council
decisions have introduced significant changes in the tax rates applicable to
several key products. These revisions aim to balance revenue generation with
relief for the common man by reducing rates on essential household and daily-use
items, while simultaneously rationalizing taxation on items like coal and
luxury goods
GST Rate Changes – Coal (From 5% to 18%)
|
S.
No.
|
Chapter
/ Heading / Tariff Item
|
Description
of Goods
|
|
1
|
2701,
2702
|
Coal;
briquettes, ovoids and similar solid fuels manufactured from coal
|
|
2
|
2703
|
Lignite,
whether or not agglomerated, excluding jet
|
|
3
|
2704
|
Peat
(including peat litter), whether or not agglomerated
|
Impact:
This increase is expected to affect the power and manufacturing sectors that
rely heavily on coal, potentially leading to higher input costs. However, the
move aligns with the government’s strategy to encourage cleaner energy sources
and reduce dependency on fossil fuels.
GST Rate Changes – Common Man Items
(A) From 12% to 5%
|
S.
No.
|
Chapter
/ Heading / Tariff Item
|
Description
of Goods
|
|
1
|
33061010
|
Tooth
powder
|
|
2
|
3406
|
Candles,
tapers and the like
|
|
3
|
3605
00 10
|
All
goods – safety matches
|
|
4
|
3926
|
Feeding
bottles
|
|
5
|
4014
|
Nipples
of feeding bottles
|
|
6
|
4202
22 20
|
Hand
bags and shopping bags, of cotton
|
|
7
|
4202
22 30
|
Hand
bags and shopping bags, of jute
|
|
8
|
4419
|
Tableware
and kitchenware of wood
|
|
9
|
6601
|
Umbrellas
and sun umbrellas (including walking-stick umbrellas, garden umbrellas and
similar umbrellas)
|
|
10
|
6603
|
Parts,
trimmings and accessories of articles of heading 6601 or 6602
|
|
11
|
6911
|
Tableware,
kitchenware, other household articles and toilet articles, of porcelain or
china
|
|
12
|
6912
|
Tableware,
kitchenware, other household articles and toilet articles, other than of
porcelain or china
|
|
13
|
7319
|
Sewing
needles
|
|
14
|
7321
|
Kerosene
burners, kerosene stoves and wood burning stoves of iron or steel
|
|
15
|
7323
|
Table,
kitchen or other household articles of iron & steel; Utensils
|
|
16
|
7418
|
Table,
kitchen or other household articles of copper; Utensils
|
|
17
|
7419
80 30
|
Brass
Kerosene Pressure Stove
|
|
18
|
7615
|
Table,
kitchen or other household articles of aluminium; Utensils
|
|
19
|
8452
|
Sewing
machines (other than book-sewing machine of heading 8440), furniture, bases
and covers specially designed for sewing machines; sewing machine needles and
parts
|
|
20
|
8712
|
Bicycles
and other cycles (including delivery tricycles), not motorised
|
|
21
|
8714
|
Parts
and accessories of bicycles and other cycles (including delivery tricycles),
not motorised, of 8712
|
|
22
|
9403
|
Furniture
wholly made of bamboo, cane or rattan
|
|
23
|
9405
|
Hurricane
lanterns, kerosene lamp/pressure lantern, petromax, glass chimney, and parts
thereof
|
|
24
|
9615
|
Combs,
hair-slides and the like; hairpins, curling pins, curling grips, hair-curlers
and the like (other than heading 8516) and parts thereof
|
|
25
|
9619
00 30, 9619 00 40, 9619 00 90
|
All
goods – napkins and napkin liners for babies, clinical diapers
|
(B) From 18% to 5%
|
S.
No.
|
Chapter
/ Heading / Tariff Item
|
Description
of Goods
|
|
1
|
3304
|
Talcum
powder, face powder
|
|
2
|
3305
|
Hair
oil, shampoo
|
|
3
|
3306
|
Dental
floss, toothpaste
|
|
4
|
3307
|
Shaving
cream, shaving lotion, aftershave lotion
|
|
5
|
3401
|
Toilet
Soap (other than industrial soap) in the form of bars, cakes, moulded pieces
or shapes
|
|
6
|
96032100
|
Tooth
brushes including dental-plate brushes
|
Impact:
This major rate cut provides relief to the common man by making essential
daily-use products more affordable. It is expected to boost consumption,
especially in rural and middle-income households.
GST Rate Changes – Miscellaneous Items
(A) From 12% to 5%
|
S.
No.
|
Chapter
/ Heading / Tariff Item
|
Description
of Goods
|
|
1
|
01012100,
010129
|
Live
horses
|
|
2
|
2515
12 10
|
Marble
and travertine blocks
|
|
3
|
2516
|
Granite
blocks
|
|
4
|
29061110
|
Natural
menthol
|
|
5
|
29061110,
30, 3301
|
Following
goods from natural menthol: (a) Menthol & menthol crystals (b) Peppermint
(Mentha oil) (c) Fractionated/DTMO (d) De-mentholised oil (DMO) (e) Spearmint
oil (f) Mentha piperita oil
|
|
6
|
3701
|
Photographic
plates & film for x-ray for medical use
|
|
7
|
3705
|
Photographic
plates & films, exposed & developed, other than cinematographic film
|
|
8
|
3706
|
Photographic
plates & films, exposed & developed, whether or not incorporating
sound track or consisting only of sound track, other than feature films
|
|
9
|
3818
|
Silicon
wafers
|
|
10
|
3926
|
Plastic
beads
|
|
11
|
4007
|
Latex
rubber thread
|
|
12
|
4016
|
Rubber
bands
|
|
13
|
6602
|
Whips,
riding-crops and the like
|
|
14
|
6909
|
Pots,
jars & similar articles of a kind used for conveyance & packing of
goods of ceramic
|
|
15
|
7015
10
|
Glasses
for corrective spectacles and flint buttons
|
|
16
|
7020
|
Globes
for lamps & lanterns, founts for kerosene wick lamps, glass chimneys
|
|
17
|
7310,
7323, 7612, 7615
|
Milk
cans made of Iron, Steel or Aluminium
|
|
18
|
7317
|
Animal
shoe nails
|
|
19
|
8306
|
Bells,
gongs & the like, non-electric, of base metal; statuettes &
ornaments; photograph/picture frames; mirrors; bidriware
|
|
20
|
8420
|
Hand
operated rubber roller
|
|
21
|
9001
|
Contact
lenses; spectacle lenses
|
|
22
|
9003
|
Frames
& mountings for spectacles, goggles or the like, and parts thereof
|
|
23
|
9404
|
Coir
products [except coir mattresses]
|
|
24
|
9607
|
Slide
fasteners and parts thereof
|
(B) From 12% to 18%
|
S.
No.
|
Chapter
/ Heading / Tariff Item
|
Description
of Goods
|
|
1
|
29061190
|
Other
than natural menthol
|
|
2
|
29061190,
30, 3301
|
Following
goods made from other than natural menthol: (a) Menthol & menthol
crystals (b) Peppermint (Mentha oil) (c) Fractionated/DTMO (d) De-mentholised
oil (DMO) (e) Spearmint oil (f) Mentha piperita oil
|
|
3
|
33074100
|
Odoriferous
preparations which operate by burning (other than agarbattis, lobhan, dhoop
batti, dhoop, sambhrani)
|
|
4
|
3826
|
Biodiesel
(other than biodiesel supplied to OMCs for blending with HSD)
|
|
5
|
Any
Chapter
|
Goods
required in connection with petroleum & coal bed methane operations under
various Govt. policies & contracts
|
(C) From 28% to 40%
|
S.
No.
|
Chapter
/ Heading / Tariff Item
|
Description
of Goods
|
|
1
|
9302
|
Revolvers
and pistols (other than heading 9303 or 9304)
|
|
2
|
9614
|
Smoking
pipes (including pipe bowls), cigar/cigarette holders & parts thereof
|
Impact:
- The reduction to 5% on medical,
agricultural, and household products promotes affordability and
accessibility.
- The increase to 18% and 40% reflects
the government’s intention to levy higher taxes on luxury, non-essential,
and environmentally harmful goods.
Conclusion
The GST Council’s recent
rate revisions present a two-fold approach:
- Encouragement for affordability and
consumption by reducing GST on essential
household and healthcare products.
- Revenue and policy alignment
by increasing GST on coal, petroleum-related goods, and luxury items,
aligning taxation with environmental and social objectives.
Overall, while industries
dependent on coal may face higher costs, households and small businesses stand
to benefit significantly from the reduction in tax rates on daily-use goods.
Disclaimer: All the Information is based on the notification, circular advisory and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
Click here
