Another Goods and Service Tax council meeting took place on 11th November in Guwahati, Assam, where the GST council is all set to cut out some of the common use items by SMEs (Small and Medium Enterprises) from the highest tax slab i.e. 28% to a lower tax slab.
In the reconsideration of 28% tax slab, the tax rate fitment committee has decided to shift the decided items on a lower tax slab of 12% or 18% as the council wants to address the public issues regarding high tax rate i.e. 28% of certain items of common use such as ceiling fans, cement, automobile components, electrical fittings, sanitary fittings, shaving cream, cases for spectacles, goggles etc.
And also to provide some relief to the SMEs, which are labour – intensive. And according to the Ministry of micro and small and medium enterprises, India is home to nearly 56 million SMEs.
According to the revenue department 80% of the tax payers contribute only 20% of tax revenue whereas, the remaining small section of the assessee account for the big share of tax proceeds.
Regarding the matter, another official says
He also added that