Providing a big relief to businesses and consumer alike, the GST council has finally decided to lower down the tax rate for as many as 178 items on Friday. This leaves just 50 items under the 28% slab under the Goods and Services Tax.
Here are all the details about the biggest GST rejig that happened yesterday:
- The 178 daily use items which previously came under the 28% tax slab are now been shifted to 18% slab.
- Doing away with the discrimination of taxes for AC and non-AC restaurants, a uniform 5% tax has been prescribed for all restaurants, both AC and non AC.
- The highest tax slab of 28% is now restricted only to luxury goods which include white goods, cement, paint, and automobile, aircraft, and yacht parts and demerit goods including pan masala, aerated water, and beverages, cigarettes etc.
- Chewing gum, coffee, chocolates, custard powder, dental hygiene products, marble and granite, polishes and creams, leather clothing, sanitary ware, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing powder, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are among the products on which tax rate has been cut from 28 percent to 18 percent.
- Talking about the GST council meeting, the finance minister, Arun Jaitley said, “As part of efforts to rationalize GST structure, the Council has been reviewing rates from time to time. In the last 3 meetings, we have been systematically looking at 28 percent tax bracket and rationalizing certain items out of that bracket into lesser categories, mostly 18 percent or even less”
Launched on July 1, 2017, GST (Goods and Services Tax) have replaced all the other taxes and weaved the 29 states into one single market with the uniform tax rate. However, with the slowdown in the economy, the “panic-stricken govt has no option but to concede demands for change” in the tax, former Finance Minister P Chidambaram, said on Twitter today.
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