Coming as an important development and relief for people in this country, GST rates on a number of items have been slashed which will result in further lowering the cost of several items of daily use. The decisions have been taken in the 23rd GST Council meeting which held in Guwahati in Assam. The meeting which was chaired by Finance Minister Arun Jaitley, finance minister of other states, and several other senior officials, was aimed at revisiting GST rates on various items as per the feedback to the government months after one of the biggest reform into India’s indirect tax system was implemented on July 1.
Ever since the GST has been implemented in the country, the government has been conducting GST Council meeting every month in order to check the response, feedback by businessmen, traders and consumer. The meetings are being held to bring further changes to the new tax system on the basis of feedback from different organisation. Here are 10 key takeaways from 23rd GST Council meeting.
Items which will become cheap and other key takeaways from 23rd GST Council meet
- 178 items have been removed from 28% slab to 18 % in GST, Bihar Deputy Chief Minister Sushil Kumar Modi informed on Twitter. The new changes will be applicable from November 15.
- Only 50 demerit and luxury items are now remaining in 28% slab.
- After tax rate has been slashed on certain items, prices of items like chocolates, nutrition drinks, marble, cosmetics, chewing gum, shampoo, deodorant, shoe polish, detergents, etc are expected to fall.
- Items like women cosmetics, shaving items, deodorants, washing powder detergent, granite marble, etc which were earlier in 28% slab have now been transferred to 18%.
- Items like paints, cement, washing machine, Air Conditioner have not been excluded from 28% tax slab
- Tax rate of 28% on sin and demerit goods will continue.
- Speaking to media, Sushil Kumar Modi also mentioned about the council’s consensus to bring the 28% slab to 18%. However, it may take some time given that the revenue associated with it.
- It also also expected that tax rate of 12% may be implied to all restaurants (AC and non-AC) to bring uniformity.
- The Council shall also reconsider on procedure to fill three returns every month in order to bring ease of some burden for small traders and businesses.
- Goods and Services Tax was implemented in the country from July 1, 2017. GST in India, divide indirect tax rates into slabs of 5%, 12%, 18% and 28%.