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GST breather for common man, more items likely to get cheaper
The issue is expected to grab a light at next GST Council meeting scheduled in Guwahati.
New Delhi: Considering the grievances of finance ministers of different states, the GST council may reduce number of products falling under highest tax slab (28 percent).
According to the state finance ministers, 28 percent tax slab includes several common use products causing misery to people.
The speculations were followed by the finalisation of a concept paper at the GST council meet that took place last friday. Two state finance ministers quoted a number of products such as bath fittings, cement, steel products such as rods used for construction that lie under high slab category and do not belong there.
Officials from Central Board of Excise and Customs (CBEC) on Saturday indicated towards a number of products that have leverage of 28 percent tax. The issue is expected to grab a light at next GST Council meeting scheduled in Guwahati. Last week Finance Minister Arun Jaitley rehearsed the plan to move to fewer slabs in near future.
Reportedly, in order to review the tax structure for different categories of restaurants for possible reduction or improvisations, a panel of state ministers will be set up. Currently, there is a leverage of 12-28 percent tax on restaurants.
Meanwhile, the GST Council on last Friday decided to cut rate on 27 common use items.
GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 percent from 12 percent, while the same on man-made yarn used in textile sector has been reduced to 12 percent from 18 percent.
Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 percent from 28 percent. GST on e-waste has been slashed to 5 percent from 28 percent.
Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 percent.
Job works like zari, imitation, food items and printing items would attract 5 percent tax instead of 12 percent.
Government contracts involving high amount of labour will be levied 5 percent GST instead of 12 percent in order to contain cost of those programmes.