Today, GST Council 23rd meeting was held. The GST Council decided to cut rates on a wide range of mass consumption items from 28 percent to 18 per cent.
23rd GST Council meeting was going on in Guwahati where Bihar Deputy CM Sushil Kumar Modi also present. Now with new rate cut, there will be only 50 items under the 28 per cent tax rate. More than 170 items will now have 18 per cent tax rate.
New Items under 18 Percent Tax:
Preparation for facial make-up
Shaving and after-shave items
Washing powder detergent
Granite and Marble
All these above items will have now 18 per cent tax rate. Sushil Kumar Modi said, “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.”
Paints and cements are still under 28 per cent tax bracket. Luxury goods like washing machines and air conditioners have been under 28 per cent tax category.
The GST Council could also decide on lowering of tax rates food served in restaurants. The GST Council is also expected to offer more relief to small and medium enterprises (SMEs) in terms of compliance burden.
Assam Finance Minsiter Himanta Biswa Sarma was heading the GST council panel. He has suggested doing away with the tax rate distinction between AC and non-C restaurants not covered under composition scheme. Currently, GST is charged at 12 per cent on non-AC restaurants, while it is 18 per cent for air-conditioned ones.
The panel also recommended lowering tax rates for manufacturers and restaurants under the composition scheme to 1 per cent. At present, while manufacturers pay GST at 2 per cent, the rate for restaurants is 5 per cent. Traders currently pay 1 per cent.
From 1 July 2017, after implement of GST, the council is scheduling meetings every month. It has representatives of all states.
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