GST Council reduces tax on 175 items from the highest tax slab i.e. 28%

0
24

On 23rd GST council meeting, the committee slashed rates on more than 175 items, which is considered to be biggest tax reductions since the new taxation system i.e. Goods and Service Tax (GST) came into being since July 1st.

The council today at 23rd GST council meeting which took place in Guwahati, Assam has decided to keep only 50 luxury and ‘Sin’ items such as tobacco in the highest tax slab i.e. 28%.  Also the council unanimously retained air conditioners, washing machines, paints, cement in the 28% tax bracket.

Bihar Deputy Chief Minister Sushil Modi said that the daily used products or mass consumptions such as shampoo, chocolate, beauty products and construction items such as marble and granite will be shifted from 28 per cent slab. However, this step will result in a revenue loss of Rs. 20 crore as the number in goods in the highest tax bracket is cut down to less than one – fourth.

There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items.

He further added,

The council is set to approve sweeping changes including simpler procedures, a single return filing form for small firms and several changes to make composition scheme more attractive.

With the decision the AC and paint makers said that the “decision was expected”. Air condition maker Blue start told one of the source that

the GST council’s decision to retain the 28 percent tax slab was largely expected. Any reduction in rates would have kick started the market.

To the same source, paint maker Kansai Nerolac said that

the company will have no choice but to pass on the burden to the consumer if cost increase.

Comments

comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here