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10 November 2017
 |
| GST Council (The Total Investment & Insurance Solutions) |
The
GST Council on Friday decided to cut tax rate on a wide range of daily-use
items - from chewing gums to detergents -- to 18 percent while keeping only 50
items, mostly demerit, sin and luxury goods in top 28 percent bracket, Bihar
Deputy Chief Minister Sushil Kumar Modi said.
The all-powerful Council pruned the list of
items attracting the top 28 percent tax rate to just 50 from 227 previously. In
effect, the Council, in its 23rd meet today, cut rates on 177 goods. The Total Investment & Insurance
Solutions
"There were 227 items in the 28 percent
slab. The fitment committee had recommended that it should be pruned to 62
items. But the GST Council has further pruned 12 more
items," Sushil Modi told reporters on the sidelines of the ongoing
Council meeting. The Total Investment
& Insurance Solutions
He
said all types of chewing gum, chocolates, preparation for facial make-up,
shaving and after-shave items, shampoo deodorants, washing powder detergent and
granite and marble will attract lower 18 percent tax rate.
"There was unanimity that in 28 percent
category there should be only sin and demerit goods. The Total Investment & Insurance Solutions
So, today the GST Council took a historic
decision, that in the 28 percent slab there will be only 50 items and the
remaining items have been brought down to 18 percent," he said. The Total Investment & Insurance
Solutions
Paints and cement have been retained in the
28 percent tax bracket, he said. "Luxury goods like washing machines and
air conditioners have been retained at 28 percent." The Total Investment & Insurance Solutions
The decision taken by the GST Council will
have a revenue implication of Rs 20,000 crore annually.
The GoM had earlier suggested slashing tax
rate to 1 percent for manufacturers and restaurants opting for the scheme from
2 percent and 5 percent, respectively.
It was in favour of doing away with the tax
rate distinction between AC and non-AC restaurants, those which are not covered
under the composition scheme and tax them at a flat 12 percent. The Total Investment & Insurance
Solutions
Currently, non-AC restaurants are taxed at 18
percent.
It also suggested that eating out at hotels
that have room tariff of more than Rs 7,500 should attract a uniform 18 percent
rate instead of any separate category for 5-star hotel, which currently falls
under the 28 percent bracket. The Total
Investment & Insurance Solutions
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