GST Council since the roll out of the new indirect tax regime from July 1 has been making changes on several fronts to better suit the end consumer and business entities. This time around in its two-day meet at Guwahati, the body chaired by Finance Minister Arun Jaitley slashed rate on daily use items which erstwhile were placed in the highest tax bracket of 28%.
GST rates have been slashed to 18% for several common or daily use items that previously attracted the highest 28% rate. The items include chewing gums, chocolates, nutritional drinks, shoe polish, cosmetics, shampoo, deodorant, detergents, shaving items and after-shaves, granite and marble. In the 28% slab rate there were 227 items and with this revision now only 50 items will face 28% GST tax.
On the sidelines of the meet today, Bihar Finance Minister said today that "Only 50 items to face 28% rate". In a leading business daily, Modi is being quoted saying, "There were 227 items in the 28% 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% category,"
There was a consensus that in the 28% slab rate only sin and demerit goods be placed. So, high-end consumer items including washing machine, refrigerators and other items such as paint and cement have been retained in the 28% slab rate.
Modi said the announcement is said to have a revenue implication of Rs. 20000 crore.