Latest Update of GST council meeting effects the rate of 177 goods


On the same issue of luxury items, Suresh Nandlal Rohira, Partner, Grant Thornton India LLP said: "Luxury goods such as air conditioners, washing machines, etc. shall be continued to be taxed at 28 per cent and so will goods such as paints and cement".

"There were 227 Items with 28% on GST slab, The fitment committee had recommended 62 items to cut, But the GST Council has further included 12 more items", Sushil Modi said.

Guwahati: Finance Minister Arun Jaitley on Friday announced that the Goods and Services Tax (GST) Council has made a decision to slash tax slabs for 178 items from 28 percent to 18 percent.

"Tax on goods of mass consumption like chewing gum, chocolates, shaving items, shampoo, skin creams, whose revenue implication is not much, has been reduced", Modi told reporters here on the sidelines of the Goods and Services Tax (GST) Council meet. At present, while manufacturers pay GST at 2 per cent, the rate for restaurants is 5 per cent. Traders now pay 1 per cent.

Finance Minister Arun Jaitley had earlier hinted at pruning the list of items in the highest GST tax bracket of 28 per cent after revenue in the new regime equalise collections previously.

More news: Three terrorists, army man killed in an encounter in Pulwama

"Tax rate on 13 items has been reduced from 18 per cent to 12 per cent, while tax rates have been reduced to 5 per cent on six items from 18 per cent. Tax rate on 8 items has decreased from 12 to 5 per cent".

"All members felt that ITC to restaurants is not passed on customers".

The Congress had demanded a cap of 18 per cent for all taxes under the Goods and Services Tax regime. The outdoor catering will continue to draw GST at 18 %.

"Congress Finance Ministers will force changes in GST Council meeting today". Deadlines for return filing have too been extended for all categories of tax-payers, which will be soon uploaded in the government website.