Notification no. 21/2018-Central Tax (Rate) ,dt. 26-07-2018-Seeks to prescribe concessional CGST rate on specified handicraft items, to give effect to the recommendations of the GST Council in it’s 28th meeting held on 21.07.2018



(Department of Revenue)

Notification No. 21/2018 -Central Tax (Rate)

New Delhi, the 26th July, 2018

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-state supplies of handicraft goods, the description of which is specified falling under the tariff item, sub-heading, heading or Chapter, as specified in the corresponding from so much central tax leviable thereon under section 9 of the said Act as is in excess of the rate specified.

Explanation – For the purpose of this notification, the expression “handicraft goods” means –Goods predominantly made by hand even though some tools or machinery may also have been used in the process; such goods are graced with visual appeal in the nature of ornamentation or in-lay work or some similar work of a substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility.

Chapter, Heading, Subheading or Tariff item Description of Goods Rate

1. 3406 Handcrafted candles 6 %
2. Handbags including pouches and purses; jewellery box 6 %
3. Carved wood products, art ware/decorative articles of wood (including inlay work, casks, barrel, vats) 6 %
4. Wooden frames for painting, photographs, mirrors etc 6 %
5. Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and lacquer work [including lathe and lacquer work, ambadi sisal craft] 6 %
6. Art ware of cork [including articles of sholapith] 6 %
7. 4601 and 4602 Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola items, Kouna/chumthang (water reeds) crafts, articles of Water hyacinth, korai mat]

Articles made of paper mache

Coir articles

Toran, Doorway Decoration made from cotton yarn or woollen yarn and aabhala (mirror) with or without hanging flaps

Handmade carpets and other handmade textile floor coverings (including namda/gabba)

Handmade lace

Hand-woven tapestries

Hand-made braids and ornamental trimming in the piece

Hand embroidered articles

Handmade/hand embroidered shawls of sale value not exceeding Rs. 1000 per piece

Handmade/hand embroidered shawls of sale value exceeding Rs. 1000 per piece

Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand)

Stone art ware, stone inlay work

Tableware and kitchenware of clay and terracotta, other clay articles

Statuettes & other ornamental ceramic articles (incl blue potteries)

Ornamental framed mirrors

Bangles, beads and small ware

Glass statues [other than those of crystal]

Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]

Silver filigree work

Handmade imitation jewellery (including natural seeds, beads jewelry, cardamom garland)

Art ware of iron

Art ware of brass, copper/ copper alloys, electro plated with nickel/silver

Aluminium art ware

Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali)

Handcrafted lamps (including panchloga lamp)

Furniture of bamboo, rattan and cane

Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll)

Ganjifa card

Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material

Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)

Hand paintings drawings and pastels (incl Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting, basoli etc)

Original sculptures and statuary, in metal, stone or any other material 6 %

2. This notification shall come into force on the 27th July, 2018.

[F.No.354/255/2018 –TRU]
(Gunjan Kumar Verma)
Under Secretary to the Government of India