GST Council overhauled the fresh tax regime decreasing the twenty eight per cent tax levied on 178 products to eighteen percent or lower. Many significant are the Council confirmed to down the tax rate on airconditioned and non-AC restaurants to five percent from the present 18% slab. The revised rates will made be applicable with effect from 15.11.2017.
The council, which saw Guwahati, has fixed to slash have just fifty luxury and ‘sin’ products such as tobacco in the peakest slab, paving the path for price reductions in a raft of generally utilized goods from furniture to sanitary ware. The step, which is likely to expense the exchequer Rs.20,000 crore, falls on the support of trader protests and the forthcoming Gujarat Assembly elections.
“We have rationalised few goods from the 28% to the 18% or further less. Additionally, there are some items that shouldn’t be at 28% that were there previously. There were about 228 list in the 28% slab, 178 out of which have been moved from the slab. Cess items like luxury items, sin goods, white materials, automobile parts, cement, paint amongst few are the just ones remain in 28% category,” Finance Minister Arun Jaitley told, addressing the media up on the GST Council meeting.
The Finance Minister told that maximum restaurants (AC & non-AC) will fall below the 5% tax phrase, with no Input Tax Credit (ITC). The firm decision had to be considered as the hotels were not relaying ITC advantages to users. User were loaded as they were penalising GST on earlier rates.
“Soaps, marble stones, flooring, toiletries have been shifted from 28% to 18%. Armoured fighting fleets along with extra item have been shifted from 28% to 12%. 13 items have been shooked from 18% to 12%. Some 6 products have been moved from 18%-5%. 8 items from 12% to 8% and six goods 5% to nil,” Jaitley said.