November 10, 2017: In a recent development, the Goods and Services Taxes (GST) Council has decided to lower the tax rate of a huge number of items from the prevailing 28% to 18% on Friday at the 23rd meeting of the Council, headed by Union Finance Minister Arun Jaitley, held at Guwahati.
Earlier, a total number of 227 items were there in 28% GST slab but now after the decision of reducing the rate now only 50 remain, which are mostly luxury items, with the rest 177 items have been put in the 18% slab as stated by Bihar Deputy Chief Minister Sushil Kumar Modi.
He further stated that 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 per cent tax rate.
A panel, headed by Assam Finance Minister Himanta Biswa Sarma, has suggested doing away with the tax rate distinction between AC and non-AC restaurants not covered under composition scheme. It has proposed a uniform tax rate of 12 per cent.
The panel headed by Assam Finance Minister had also suggested that eating out at hotels that have room tariff of more than Rs. 7,500 should attract a uniform 18 per cent rate instead of any separate category for 5-star hotel, which currently falls under the 28 per cent bracket.
To ease compliance burden for small businesses, the GST Council is also going to review the requirement of filing three returns every month under the GST set-up.
It may be mentioned that the GST which had been under implementation from July 1, has five tax slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.
