The GST (Goods and Service Tax) Council meeting on Saturday reduced the number of items in the 28 percent tax slab once again. Over the last one year, 191 goods have been taken out of the highest tax slab in the new system that was implemented on 1 July 2017.
There are now only 35 items left on the 28 percent tax slab after the recent revision of the GST rules, and they include:
- Air conditioners
- Television of bigger sizes
- Digital camera
- Video recorders
- Dishwashing machine
- Automobile parts
- Automobile equipment
- Aerated drinks
- Demerit items like tobacco, cigarette and pan masala
Tax experts say that after revenue of the government stabilizes, the GST slab of 28 percent may further rationalize and constitute only sinful and super-luxury goods. There could also be an intention to move towards reducing the number of tax slabs.
On Saturday, taxes on 15 items were reduced from 28 percent to 18 percent, these include household goods like washing machines, televisions up to 68 cm (27 inches) in size and refrigerators. The reduction in taxes could help increase consumption and in turn help the government gain the estimated loss of Rs 6,000 crore, that it will face from the new tax cuts, according to a PTI report.