GST Rate Reduced from 18% to 5%: January 2018 Council Recommendations
A detailed record of the four categories of goods for which the GST Council recommended a rate reduction at its meeting on 18 January 2018, with legal context and official sources for checking later changes.
Goods recommended for GST reduction from 18% to 5%
At its meeting on 18 January 2018, the GST Council recommended reducing the GST rate from 18% to 5% for the goods described below. The related changes were intended to operate through amendments to the rate notifications, generally from 25 January 2018, subject to the terms of the notified provisions. A Council recommendation does not by itself change the tax payable.
| No. | HSN chapter or heading | Description of goods in the original list | Historical proposal |
|---|---|---|---|
| 1 | 13 | Tamarind Kernel Powder | 18% to 5% (2018 recommendation) |
| 2 | 1404/3305 | Mehendi paste in cones | 18% to 5% (2018 recommendation) |
| 3 | 2711 | LPG supplied for supply to household domestic consumers by private LPG distributors | 18% to 5% (2018 recommendation) |
| 4 | 88 or any other chapter | Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads | 18% to 5% (2018 recommendation) |
Applicable law: sections and legal provisions explained
Article 279A of the Constitution of India
Article 279A establishes the GST Council and provides for recommendations on GST matters, including rates and exemptions. The Council's recommendation is a policy step; the legally enforceable tax rate must be found in the applicable legislation and notifications.
Section 9(1) of the Central Goods and Services Tax Act, 2017
Section 9(1) provides for the levy of central GST on intra-State supplies of goods or services, at rates notified by the Central Government on the recommendations of the GST Council, subject to the statutory framework. The corresponding State GST legislation generally governs the State component of an intra-State supply.
Section 5(1) of the Integrated Goods and Services Tax Act, 2017
Section 5(1) provides for the levy of integrated GST on inter-State supplies, at rates notified by the Central Government on the recommendations of the GST Council, subject to the statutory framework. The IGST schedule and applicable exemptions should be checked separately from the CGST schedule.
Section 15 of the CGST Act: value of taxable supply
Section 15 sets out the rules for determining the value of a taxable supply. A GST percentage is applied to the taxable value determined under the law, rather than automatically to every quoted or retail price.
HSN classification and conditions
The Harmonised System of Nomenclature (HSN) identifies classes of goods for tariff purposes. A broad chapter number in an older announcement does not establish that every product in that chapter qualifies for a concessional rate. Read the precise tariff entry, exclusions, descriptions and any end-use or recipient conditions in the operative notification.
How to determine the correct GST rate today
Identify the product and its correct HSN classification, then consult the current CGST/SGST or IGST rate notification and its amendments. Check the date of supply, exemptions and any specific conditions. For example, the 2018 entry concerning LPG refers to household domestic consumers and private distributors, while the space-related entry concerns specified supplies for launch vehicles, satellites and payloads; these descriptions should not be extended to unrelated supplies.
Subsequent GST Council decisions and notifications, including later rate rationalisation measures, may have changed the treatment of these products. The historical 18%-to-5% recommendation should therefore never be used as a substitute for checking the current legal text.
Official sources and updated legal references
- GST Council - meeting records, press releases and policy recommendations.
- CBIC GST portal - GST laws, rate notifications and circulars.
- CBIC Tax Information Portal - notification and legal instrument searches.
- India Code - central legislation including the CGST and IGST Acts.
- GST Common Portal - GST compliance services and resources.
Article reviewed: 21 October 2026. This page retains the original 2018 historical list and explains the framework for verifying subsequent changes. It is not a product-specific tax ruling.