GST Council with Finance Minister Arun Jaitely at its helm and all state finance ministers is slated to meet on November 10. In the meet, some of the common use items currently taxed at the highest slab rate of GST @28% shall see a rate cut such as shampoo. The GST regime taxes goods and services under four slab rates; 5% lowest, 12% and 18% standard and 28%.
The services at AC restaurant can also be cheaper as the Group of Ministers (GoM) earlier recommended a rate cut from 18% to 12%. GST on other common use items, plastic products, handmade furniture etc is likely to be revised lower.
Currently furniture of all kinds attract a GST of 28%. For wooden furniture which is handmade by artisans and is generally used by middle income group there has been constant demand to reduce tax incidence. For the sanitary ware made of plastic, GST @ 28% is being charged while some other plastic goods attract a standard GST rate of 18%.
Rationalisation of tax impact due to new GST regime shall also be brought about in respect of some of the SME sectors which in the previous indirect regime were at an advantage due to the product being exempt from excise or a lower VAT rate.
An official as quoted in the PTI report said, "A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked".
GST incidence on weighing machines, compressors may also be reworked to 18 per cent from 28 per cent.
Nonetheless no clarity in respect of fuel being included within the scope of GST is made. Prime Minister Narendra Modi stated that the GST regime shall further boost ease of doing business ranking for India going forward. He said, "As you all know, GST is the biggest tax reform in the Indian economy. And it impacts many aspects of doing business. With GST, we are moving towards a modern tax regime, which is transparent, stable and predictable," Prime Minister Narendra Modi said.
The process of return filing under GST is also be made simpler in this week's meet.