Blogger Tips and TricksLatest Tips And TricksBlogger Tricks

moving

Blogger Tips and TricksLatest Tips And TricksBlogger Tricks

Saturday, November 11, 2017

Only 50 items to face 28% GST tax rate: Here are all the details

Only 50 items to face 28% GST tax rate: Here are all the details

In a major revamp under the GST, the Council on Friday slashed tax rates on a host of consumer items such as chocolates, chewing gum, shampoo, deodorant, shoe polish, detergents, nutrition drinks, marble and cosmetics. The rates will come into effect from November 15.
“Only 50 items to face 28 per cent rate,” Bihar finance minister Sushil Modi told reporters on the sidelines of the ongoing meeting in Guwahati.
Cess on goods such as luxury, sin and whitegoods have been retained at 28 per cent.
Eating out has become cheaper. For restaurants and hotels, the GST Council has fixed rate for restaurant at flat 5% who don’t claim tax credit (including ac/non ac), while outdoor catering at 18%. Rate for hotels below Rs 7,500 room fixed at 5%.
“There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned to more items. Now all types of chewing gum, chocolates, preparation for women cosmetics, shaving and after-shave items, deodorants, washing powder detergent and granite and marble. All these items have been put in the 18 per cent category,” Modi said.
There was unanimity that in 28 per cent category there should be only sin and demerit goods, he added. “So, today the GST Council took a historic decision, that in the 28 per cent slab there will be only 50 items and the remaining items have been brought down to 18 per cent .”
Paints, cement have been retained at 28 per cent, he added. Luxury goods such as washing machine and air conditioners have been retained at 28 per cent.
But mass consumption items have been lowered to 18 per cent , Modi said.
Tax rate on fire extinguisher, watches, blade, stove, mattress has been reduced to 18 per cent from 28 per cent.
GST rate on fly ash and fly ash brick reduced to 5 per cent from 18 per cent. Rate on pasta, jute and cotton hand bags cut to 12 per cent from 18 per cent.
The decision taken by GST Council will have a revenue implication of Rs 20,000 crore, Modi added. “There is a consensus that slowly, the 28 per cent slab should be brought to 18 per cent. But it will take some time because it has a big revenue implication,” he said.
Meanwhile, according to reports Council has increased the threshold for composition scheme to Rs 1.5 crore, said Amit Mitra, Finance Minister of West Bengal.
He also revealed that the aggregate loss of revenue from implementation of GST was around Rs 60,000 crore for Centre and Rs 30,000 crore for states in last 3 months.
Source: ET

No comments:

Post a Comment