Applicability of notiification 21/2018.

The said notification does not mention total exemption. It only relates to reduction in rate of tax.

"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 descriptttion of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as specified in the corresponding entry in column (2), from so much central tax leviable thereon under section 9 of the said Act as is in excess of the rate specified in column (4) of the said Table."

For example, sl. no. 4, ‘wooden frames for painting, photographs, mirrors etc’ were earlier taxable at 18% (9+9), now they will be taxable at 12% (6+6) w.e.f. 27.07.2018.

The notification says, ‘as is in excess of the rate specified in column (4) of the said Table’. In the given example, rate mentioned in column 4 for wooden frames is 6% CGST, which was taxable at 9% CGST. So, excess 3% has been exempted.