The GST council in its meet on Sunday in the National Capital reduced GST rates on several daily use items including kitchen items, stationery supplies. In the meet, the Council also widened the net of Concessional scheme for small businesses.
The list that comprises 66 items under different categories with slashed rates are as follows:
Under the packaged food category, pickles, toppings, sauce, instant food items and other fruit and vegetable products have now been kept under the tax rate of 12% from the earlier decided rate of 18%. For cutlery and exercise books also the slashed rate has been 12% from 18%.
Cashews, insulin and agarbatti have now been revised at GST rate of 5% from the earlier penciled rate of12%.
The GST rate for job contractual works in different industries including diamond processing, leather, printing and jewellery and textiles was also slashed from the higher 18% to 5%.
The other items under the ambit of GST which were initially kept at a rate of 28%, including school bags, computer printer, ball bearings, few tractor components, pre-cast concrete pipes and plastic tarpaulin, are now revised at 18% rate.
For children's colouring books, which in the previous meet at Srinagar was decided at 12% GST rate shall now fall outside the purview of GST with no GST implications.
Movie tickets of less than Rs. 100 shall also attract a lower rate of 18% in comparison to the previously decided 28%. However, for tickets valued over Rs. 100, the GST rate shall remain to be 28%.
As per the Finance Ministry, the effective tax rates shall reduce the price of such items even lower by what they hold today. The change has been brought about in line with the changing consumption trend and economies.
In respect of the small businesses, the scope of composition scheme has been enlarged to include assesses with a turnover of Rs. 75 lakh from the initial cap of Rs. 50 lakh who shall now be able to pay 1-5% GST on a presumptive basis on total sales without tax credits. With it compliance shall increase for small traders.