GST Council slashes rates on 66 items – know what will get cheaper

In a huge relief for the consumers and small businesses, the GST Council has slashed rates for as many as 66 of the 133 items on which representations had been received.

The decision was taken at the 16th meeting of the GST Council – chaired by Union finance minister Arun Jaitley and attended by state finance ministers – held on Sunday with barely two weeks to go for the goods and services tax (GST) roll-out.

“The 133 representations received were considered at length and the officers’ committee made their recommendations… the council has reduced tax in 66 out of the 133 cases,” Finance Minister Arun Jaitley told reporters.

- Advertisement - - Article resumes -

“The objective (of earlier rates) was to maintain equivalence to the existing taxes, and in some other cases the fitment had breached this equivalence principle. In others, the reduction is required because of the changing nature of the economy and changes that have occurred in consumer preference,” he said.

The Finance Minister said reducing the tax rate meant a revenue impact for the government, but lower tax incidence could help improve tax buoyancy and keep inflation low.

Kitchen use items like pickles, mustard sauce and morabba will attract 12 per cent GST, as against 18 per cent proposed earlier. Also, tax rates on cashew nuts have been cut to 5 per cent from 12 per cent.

GST on insulin and agarbatti has also been lowered to 5 per cent, while school bags will attract tax of 18 per cent. Sanitary napkins have been classified under the 12% bracket.

The GST Council lowered GST rates on children’s drawing books to nil from 12 per cent. Computer printers will attract 18 per cent tax as against 28 per cent earlier. Tax rate on kajal has been lowered to 18 per cent from 28 per cent.

The council also relaxed the Rs 50 lakh per annum turnover ceiling to Rs 75 lakh for businesses to take part in the GST Composition Scheme.

Movie tickets costing Rs 100 and below will now attract 18 per cent tax, as against 28 per cent proposed earlier, while those above Rs 100 will continue to attract 28 per cent GST.

Based on industry demand, the GST Council also lowered the levy on jobwork for textiles, gems and jewellery, printing and leather from 18 per cent to 5 per cent.

Apart from the changes in rates, the GST Council also decided that traders, manufacturers and restaurant owners with turnover of up to Rs 75 lakh can opt for a composition scheme and pay taxes at the rate of 1, 2, and 5 per cent respectively.

Small traders within the prescribed turnover will be able to opt for the scheme by paying 1 per cent tax while manufacturers are allowed to pay 2 per cent and restaurants 5 per cent. Those opting for the composition scheme do not need to file invoices electronically or complete the three-stage filing process every month.

Over the last three weeks, the GST Council had decided the rates for 1,211 goods and around 500 services. All goods and services have been put into four tax slabs –5, 12, 18 and 28 per cent. Several mass-consumption items will attract zero tax.

The next meeting of the GST Council is scheduled for June 18 when it will take up lottery taxes and e-way bill.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

How Ravish Kumar and Vinod Dua misled people about ‘martyr status’ to CRPF jawans after Pulwama attack

How Ravish Kumar and Vinod Dua misled people about ‘martyr status’ to CRPF jawans

Ravish Kumar of NDTV is a man known for many lows. But this may well be his lowest point.
Days after Pulwama attack, Kamal Haasan toes the Pakistan line

Kamal Haasan demands ‘referendum’ in Kashmir, terms Pakistan Occupied Kashmir as ‘Azad Kashmir’

Days after Pakistan sponsored Pulwama attack, Kamal Haasan has echoed the sentiments of terrorist state Pakistan when he sought a 'referendum' in Jammu and Kashmir

Pakistan quotes The Quint, Karan Thapar and Praveen Swami to brand Kulbhushan Jadhav as a ‘RAW spy’ at ICJ

Pakistan quoted several articles published in Indian to present its case during Kulbhushan Jadhav hearing at the International Court of Justice

The Hindu not only cropped the Rafale dissent note, but also had digitally manipulated it

Comparison of Hindu document with ANI document shows that Hindu had doctored the Rafale dissent note

Man whose number was made public by Barkha Dutt for stalking, claims he is getting threatening calls, says didn’t abuse Barkha

In her tweet, Barkha demanded the Home Minister of the country, Rajnath Singh, himself intervene in the matter which is routinely dealt with by local Police.

Kavita Krishnan uses 4 year old photograph to claim PM Narendra Modi was laughing after Pulwama attack

Using a old photo, Kavita Krishna claimed the Modi was having fun at election rallies after Pulwama attack

Meet the people whose main concern is if Modi may ‘benefit’ due to terror strike, not tears of martyrs’ families

While the Country held its breath and read gut-wrenching stories of the Jawans martyred in the Pulwama attack, the 'liberals' were more concerned about politics than the tears of the martyr's families.

Imran Khan’s deranged statement on Pulwama terror attack tailor-made to appeal to Indian ‘liberal’ sensibilities

In his statement on the Pulwama terror attack, Imran Khan claimed that his country had nothing to gain from attacking India. Apart from that, he threatened India with retaliation should the Indian Army decide to attack Pakistan.

JNU ‘student’ who was accused of stealing funds in Kathua case found spreading rumours about Kashmiri girls trapped in Uttarakhand

CRPF also issued a notice that certain 'miscreants' on social media are spreading rumours and hate on social media

Pakistan funded Islamic terrorist blows up 300 kgs of IED, actor brings ‘Hindu right wing’ argument to shield Pakistan

Jaaved Jaaferi refuses to hold Pakistan accountable for the attack, instead equates Hindus with Jaish Terrorists.

Latest articles

Connect with us

137,517FansLike
110,474FollowersFollow
23,139SubscribersSubscribe

Don't miss these