PRESS RELEASE

(On Rate Changes)  

GST Council in the 38^th meeting held on 18^th December, 2019 at New Delhi took following decisions relating to changes in GST rates, exemptions, -  

1. To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1^st January, 2020.  

2. To levy a single rate of GST @ 28% on both State run and State authorized lottery. This change shall become effective from 1^st March, 2020.  

3. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks  of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods ( HS code 3923/6305) in view of the requests received post the changes recommended on such goods in last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1^st January, 2020.

[This note presents the decision of the GST Council in simple language for easy understanding which would be given effect to through Gazette notifications/ circulars which shall have force of law.]

GST rate changes: Council unified lottery taxation and adjusted exemptions and packaging classifications affecting tax applicability. The Council recommended changes to GST treatment: lowering the government ownership threshold qualifying an entity for upfront exemption on long term lease payments for industrial/financial infrastructure plots; applying a single GST rate to both state run and state authorised lotteries; and raising GST to a uniform rate on woven and non woven polyethylene/polypropylene bags and sacks, including Flexible Intermediate Bulk Containers, under the specified HS classifications, to be implemented by gazette notifications and circulars.