Union Finance Minister Arun Jaitley today said that India’s economy is going in a right direction and will continue to do well in the future. Speaking at State Bank Academy programme in Gurugram, the finance minister said,”Compared to financial institutions everywhere else in the world, we have done well and will continue in that direction”. Arun Jaitley’s comment came two days after the GST council decided to slash tax rates on a number of products from chewing gums to detergents to 18 percent from 28 percent.
“178 items have been moved from 28 percent to 18 percent GST slab, changes will be applicable from November 15,” the minister had said on Friday. Detergent, toiletries, marble floorings are among products which have been shifted to 18 percent tax bracket from 28 percent, he said while explaining details.
The council had also reduced tax rates on 13 items from 18 percent to 12 percent, even as tax rates have been slashed to 5 percent on five items from 18 percent. Apart from this, rates on six items have been reduced to zero from 5 percent, the finance minister said further.
While talking to reporters, the minister said that the restaurant industry will not get input tax credit. He added that tax rate will be 5 percent uniform for all AC or non-AC restaurants. Restaurants in starred-hotels will charge 18 percent tax with input tax credit, those in lower category hotels to charge 5 percent GST without ITC.