1. More relief on cards: These items may get cheaper after GST Council meet this week

More relief on cards: These items may get cheaper after GST Council meet this week

The GST regime slots items under four primary tax rate slabs — low rate of 5%, standard rates of 12% and 18%, and high rate of 28%.

By: | Updated: November 6, 2017 12:05 PM
GST, GSTN, GST Network, offline tool, offline tool for business, GST The GST Council, at its next meeting on November 10, is likely to cut rates on handmade furniture, plastic products and daily use items. (Express Photo)

The GST Council, at its next meeting on November 10, is likely to cut rates on handmade furniture, plastic products and daily use items, according to reports. The GST Council chaired by Finance Minister Arun Jaitley is likely to cut 28% GST on common use items like shampoo, PTI reported.

Dining out at AC restaurants might also get cheaper as the Group of Ministers (GoM) have recommended lowering of tax rates from 18% to 12%. However, yet again there was no mention whether fuel would be brought under the GST regime. The government, in the past, had ruled out bringing fuel under the GST even as Oil and Petroleum Minister has been advocating for it strongly.

In a further relief to small and medium enterprises (SME), the panel is likely to rationalise tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or attracted lower VAT rates in the previous indirect tax regime.

All types of furniture attract a 28 percent tax under GST. Wooden furniture is handmade by unorganised sector artisans and is mostly used by middle-class families and there have been demands for lowering tax incidence on them. Also, some items of plastic attract 18 percent GST but goods like shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28 percent levy.

In GST Council Meeting on Oct 6, the rate of diesel engine parts and pumps were reduced from 28% to 18%. The council also lowered tax rates on 27 products and a few services, while offering relief to exporters and small and medium enterprises (SMEs).  Currently, the GST regime slots items under four primary tax rate slabs — low rate of 5%, standard rates of 12% and 18%, and high rate of 28%. Other than this, gold and jewellery are taxed at a concessional GST rate of 3%, while rough diamonds are having a 0.25% levy.

On Saturday, Prime Minister Narendra Modi hinted that more measures would be taken for businesses for ease under the GST regime. “As you all know, GST is the biggest tax reform in the Indian economy. And it impacts many aspects of doing business. With GST, we are moving towards a modern tax regime, which is transparent, stable and predictable,” Prime Minister Narendra Modi said.

  1. Vijaya Varma
    Nov 6, 2017 at 3:29 pm
    If BJP wants to win 2019 general elections with thumping majority the central government should abolish compex and cumbersome tax returns for doing business or running any industry. It should introduce involuntary tax paying account so that business people need not bother about filing tax returns. It will make doing business so easy and simple with no need to maintain account books for auditing and filint tax returns. This involuntary tax paying account is available on the internet by searching with -- involuntary tax paying account by varma
    Reply
    1. Satender Kumar Arora
      Nov 6, 2017 at 3:25 pm
      So frequent changes in GST rates, though may be beneficial to some businesses/consumers, yet such a move is not appreciable. Rates were fixed after a wide range of discussions and before decided every bit of things, i.e. its impact on particular industry, consumer, employment etc. would have been considered. Further, the businesses houses, particularly in un-organised sector is facing lot of problem in filing of returns etc. All such mis calculated steps puts a dent on the decision taken and the Government.
      Reply
      1. V
        Vinaayak G
        Nov 6, 2017 at 2:06 pm
        Does such wide ranging "roll back/re-classification" in respect of various items/services being identified at this stage not truly speak volumes about their wrong categorisation thereof by the concerned agency/group/ authority? One also shudders to imagine whether the original 'allocation' thereof in the highest tax bracket (28 ) was "consciously" done to assess the general mood of the people? Since there has been wide spread public resentment against the top ranked slab of the GST (as high as 28 ) apart from the assembly elections to two key states namely HP and Gujarat being scheduled to be held shortly, such a 'pragmatic' move holds no real surprises. In any case, such a positive 'revision' in GST by the govt should be taken as some "God" send opportunity which may significantly 'benefit' the affected people across the nation.Thanks a lot Hon'ble Narendra Modi ji for coming to the 'rescue' of badly tax smitten common man in India as 'Pay and Procure' is the key watch-word now.
        Reply

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